National Vacant Properties Campaign

1
National Vacant Properties Campaign
presented by Don Chen, Smart Growth America
2
Smart Growth America
3
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

4
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
5
(No Transcript)
6
(No Transcript)
7
(No Transcript)
8
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 Islands
  five major cities are estimated to cost them 1.3
  billion in property value.

9
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.

10
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.

11
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.

12
The Barriers to Reclaiming Vacant Properties
13
Four Barriers to Reclaiming Vacant Properties

• Code Enforcement
• Tax Delinquency
• Title Problems
• Local Government Policies

Source Frank Alexander, Renewing Public Assets
for Community Development, LISC, 2000.
14
I. Code Enforcement
The Barriers

• Outdated housing and building codes
• Ineffective Enforcement Proceedings
• Time Delays
• Ineffective Remedies

The Opportunities

• Code Revision Building, Housing, Vacant Land
• Shift from In Personam to In Rem Jurisdiction
• Shorter Time Periods
• Super Priority Status for Abatement Liens

15
II. Tax Delinquency
The Barriers

• High Delinquency Rates
• Taxes Exceed Fair Market Value
• Lengthy Tax Foreclosure Procedures
• Bulk Sale of Tax Liens

The Opportunities

• Reform of Tax Foreclosure Laws
• Shorter Time Periods
• Complete Notice to All Interested Parties
• Halt the Sale of Tax Liens

16
III. Title Problems
The Barriers

• 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

17
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

18
(No Transcript)
19
Preventing Abandonment

• Build the capacity of property owners and
  managers to preserve work force housing
• Housing inspection programs and ordinances
• Pro active code enforcementslumlord task forces
• Community Oriented Policing partnerships
• Foreclosure prevention and other ways of
  preserving single-family homes

20
AssessmentKnow 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

21
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

22
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

23
Property Transfer or Acquisition

• Legal procedures property rights and due
  process
• Tax delinquency and foreclosure
• Other acquisition and disposition strategies
• Land banking

24
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

25
Opportunities for Revitalization

• Infill Development channel growth
• Affordable and Work Force Housing
• Rebuilding Neighborhoods
• Crime Reduction
• Livable Communities and Prosperous Regions

26
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

27
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

28
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

29
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)

30
Additional Resources

• National Vacant Properties Campaign
  www.vacantproperties.org
• Smart Growth America
• www.smartgrowthamerica.org
• ICMAs 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

31
(No Transcript)