Transcript Document

National Vacant Properties Campaign
presented by
Don Chen, Smart Growth America
Smart Growth America
What Are Vacant Properties?
• Abandoned Buildings
• Single Family Residential (Owner)
• Multi-Family (Absentee)
• Commercial and Industrial
• Vacant Lots – No Legitimate Uses
• Substandard and Unsafe Buildings &
Houses
Hidden Community Assets
• On average, 15 percent of city land is
usable but vacant; equivalent to 12,367
acres (19.3 square miles) for the typical
city.
• Cities in the South reported an average
of 19.3 percent vacant land.
• In the Northeast, there is an abandoned
property for every 52 households.
Source: Pagano & Bowman, Brookings Institution, 2000
How Do Vacant Properties
Hurt Communities?
• In Philadelphia, homes within 150 feet of an
abandoned and vacant property lost $7,627
of its value; within 150 to 300 feet, $6,819;
within 300 to 450, $3,542.
• The 11,000 vacant
properties in Rhode
Island’s five major
cities are estimated to
cost them $1.3 billion
in property value.
How Much Tax Revenue is Lost?
and how much could be gained?
• In St. Paul, a rehabilitated property is
estimated to produce 11 times more tax
revenue than an abandoned and vacant
property.
• The St. Paul study also estimated that the
rehabilitation of a property “generates
$13,507 in enhanced property tax
revenues” because of the private
investment in surrounding properties.
How Do Vacant Properties
Affect Other City Services?
• Over 12,000 fires are reported in vacant
structures every year, resulting in $73 million in
property damage (70 percent are suspicious or
incendiary).
• In Austin, researchers found that 83 percent of
unsecured vacant buildings showed evidence of
illegal activities; crime rates on blocks with such
properties were twice as high as similar streets
without vacant properties.
• In Richmond, city officials found that proximity
to a vacant property was the most closely
correlated factor in predicting neighborhood
criminal activity.
Costs of Maintenance and Safety
• St. Paul, MN spends an estimated $205,304
just to maintain abandoned properties
(boarding them up, cutting grass, hauling
trash, shoveling snow, repairing sidewalks,
etc.)
• In Trenton, NJ, these maintenance costs
range from $500,000 to well over $1 million
per year.
The Barriers to Reclaiming
Vacant Properties
Four Barriers to Reclaiming
Vacant Properties
I.
Code Enforcement
II.
Tax Delinquency
III. Title Problems
IV. Local Government Policies
Source: Frank Alexander, Renewing Public Assets for
Community Development, LISC, 2000.
I.
Code Enforcement
The Barriers
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Outdated housing and building codes
Ineffective Enforcement Proceedings
Time Delays
Ineffective Remedies
The Opportunities
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Code Revision – Building, Housing, Vacant Land
Shift from In Personam to In Rem Jurisdiction
Shorter Time Periods
Super Priority Status for Abatement Liens
II.
Tax Delinquency
The Barriers
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High Delinquency Rates
Taxes Exceed Fair Market Value
Lengthy Tax Foreclosure Procedures
Bulk Sale of Tax Liens
The Opportunities
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Reform of Tax Foreclosure Laws
Shorter Time Periods
Complete Notice to All Interested Parties
Halt the Sale of Tax Liens
III.
Title Problems
The Barriers
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Lack of Probate (Heir Property)
Defunct Corporations
Open Mortgages of Record
Prior Foreclosures
The Opportunities
• Judicial Enforcement of Taxes and Liens
• Title Company Role in Statutory Reforms
• Notice to All Parties Revealed by Title Exam
IV.
Local Government Policies
The Barriers
• Inadequate Data on Delinquencies and Violations
• Inadequate Staff for Inspections & Enforcement
• Inadequate Disposition Policies
The Opportunities
• Creation of G.I.S. Database
• Coordination Between Tax Officials and Planning
Departments
• Modification of Disposition Policies
• Single Purpose Entities – Land Bank Authorities
Preventing Abandonment
• Build the capacity of property owners and
managers to preserve work force housing
• Housing inspection programs and ordinances
• Pro active code enforcement—slumlord task
forces
• Community Oriented Policing partnerships
• Foreclosure prevention and other ways of
preserving single-family homes
Assessment—Know Your
Territory
• Develop a property information system
• Identify ‘early warning’ factors
• Make it user-friendly for communities
• Inventory vacant properties
• Building characteristics and ownership
• Investigate site conditions
• Assess local govt. programs and
ordinances
• Understand particular local conditions
affecting abandonment
Stabilization
• Exercise local code enforcement powers
to abate unsafe/dangerous conditions
• Criminal Prosecution and Civil Enforcement
• Administrative Abatement Processes
• Tailor the appropriate remedy to the
situation
• Investigate site conditions and create
ownership profiles
• Receivership as temporary remedy for
substandard housing
Rehabilitation
Resources & Assistance
• Financial resources & technical assistance
• Rehabilitation incentives:
• Grants and loans
• Permit streamlining
• Capacity building in property
management and ownership
• Apartment Owner Associations Trainee
Programs
• Partnerships with CDCs, nonprofit, and
private financial institutions
Property Transfer or Acquisition
• Legal procedures – property rights –
and due process
• Tax delinquency and foreclosure
• Other acquisition and disposition
strategies
• Land banking
Long Term Revitalization
Policies and Programs
• Comprehensive plans and strategic
frameworks
• Affordable housing policies and
programs
• Building and Rebuilding Markets
• GOAL: foster a climate that attracts
residents and private investors
Opportunities for Revitalization
• Infill Development —
channel growth
• Affordable and Work
Force Housing
• Rebuilding
Neighborhoods
• Crime Reduction
• Livable Communities
and Prosperous
Regions
National Vacant Properties Campaign
• Practitioners (Property Owners and
Government Agencies) Toiling in Isolation
without Plans
• Complex Issues--Difficulty Making the
Case for Action (Inventory, Clearing Title,
Reforming Regulations)
• Lack of Major Clearinghouse for
Information, Best Practices and Learning
• No Way to Connect with Consultants,
Assistance, Experts to Help Communities
Campaign Goals
• Build a Coordinated Movement
and a Network of Experts
• Communications Tools to Make
VP Reclamation a National
Priority
• Provide Communities with
Information about Policy
Innovations and Cutting Edge
Research
• Technical Assistance:
Community Workshops and
Longer-Term Intensive
Partnerships
Initial Progress
• Assembling Partners, Funders and Advisors
• Generating Buzz at Conferences (Smart Growth in
New Orleans, APA in Denver)
• Brochure and Web Site (www.vacantproperties.org)
• Preparation of Technical Assistance and Research
Papers
• July 9th Roll Out
Current Efforts
• Articles and Reports (briefing for smart growth
funders, magazine articles, op eds)
• Information Resources for Internet Portal (best
practices, recent research, organizational resources,
case studies)
• Technical Assistance Workshops; Working Directly
with Some Communities (Las Vegas, NV, etc.)
• Outreach through Speeches and Presentations
(National Trust for Historic Preservation Conference
in Denver, Partners for Smart Growth in Portland,
OR)
• Research & Policy Forum (June 2004)
Additional Resources
• National Vacant Properties Campaign
www.vacantproperties.org
• Smart Growth America:
• www.smartgrowthamerica.org
• ICMA’s Case Studies:
www.icma.org/vacantproperties
• LISC: www.liscnet.org/resources
• Fannie Mae Foundation: www.knowledgeplex.org
• Brookings Center on Urban & Metropolitan
Policy: www.brook.edu