Responding To Detroit s Foreclosure and Vacant Property Crisis

Transcription

1 Responding To Detroit s Foreclosure and Vacant Property Crisis Presented to New Partners for Smart Growth Conference February 4 th 6 th, 2010 By: Deborah L. Younger Executive Director Detroit LISC

2 Presentation Goals 2

3 Background

4 Change in Percent Addresses Vacant, Detroit, March 2009 Addresses Vacant In 3.25 years

5 DETROIT VACANCY RATE According to the US Postal Service: # Vacancies, Mar ,527 # Vacancies, Dec ,212 % Vacancies, Mar % % Vacancies, Dec % Properties in tax foreclosure 18,110 Foreclosure filings from Q1 and Q2 of ,246 Vacancy after pending foreclosures 115,883 (30% of Detroit property)

6 Partnerships VPLT Advisory Council

7 Office of Foreclosure Prevention and Response Six areas of focus: Data Public Policy Counseling Financial Tools Land Use Communication & Education

8 Office of Foreclosure Prevention and Response Accomplishments to date: Social Compact/First American Core Logic Data Platform AVM Study Weak Market Study NHSA Detroit Collaborative Design Center Prevention Activities

9 Detroit Vacant Property Campaign An initiative of Detroit LISC, led by Community Legal Resources, the Detroit Vacant Property Campaign (DVPC) includes many stakeholder groups: Community groups, neighborhood associations CDC s, CDAD Residents Faith-based organizations City of Detroit Next Detroit Neighborhood Initiative Office of Foreclosure Prevention and Response University of Michigan Taubman College of Architecture and Urban Planning

10 Detroit Vacant Property Campaign The DVPC s goals include: Moving vacant properties back into reuse Strengthening nonprofits and community organizations Increasing community and public awareness Helping communities lead their own campaigns Creating an environment (i.e., city, county state legislation and policy) that supports the community s vacant property efforts and goals

11 Detroit Vacant Property Campaign

12 Accomplishments to date: Detroit Vacant Property Campaign Served nearly fifty neighborhoods over the course of one year 18 through education and outreach work 10 through general TA 12 through more intense TA and planning 9 through CAPP mini-grant program Led community data collection processes in 8 neighborhoods Developed and distributed over 2,500 Toolbox publications to neighborhoods Recognized as resource to local and national media as well as local and state policymakers

13 Partnerships VPLT Advisory Council

14 VPLT Coordinated Planning Vacant Property Leadership Team (VPLT) Mission Coordination Vision Leadership

15 VPLT Goals To create a state-of-the-art vacant property management system to turn VP s into assets Identify a shared vision among stakeholders Improve communication and trust Coordinate efforts among the existing (and future) partners Seek convergence of initiatives Scale up to meet needs Design and capitalize the Vacant Property Management System

16 VPLT Focus Areas Five focus areas: 1. Re-image land use throughout the City of Detroit 2. Support City s formation and operational startup of a land bank authority 3. Support City s NSP planning and implementation 4. Design and capitalize the delivery system 5. Determine opportunities to attract investment capital and open consumer lending

17 1) Land Use Develop new framework for land use in Detroit Focus on strategy for adapting to change rather than shrinking vs. growing Look for active and productive land uses Connect green space to people and the economy Three components to the vision: Dense Urban Centers Making Things Regenerations (ecological social, economic)

18 2) Detroit Land Bank Short-term strategy: Partner with State Land Bank to acquire REO properties in areas with immediate investment opportunity Build an acquisition/disposition system on a pilot basis Test LBA tools Educate public officials and Detroit Land Bank Authority Board about benefits and opportunities of a land bank Engage Genesee Institute to develop business model, write policies and procedures and bylaws Long-term strategy: Transfer capacity built in partnership with the State LBA to the Detroit LBA

19 3) NSP Participating in NSP Steering Committee Participating in Data, Financial Models, Neighborhood Strategies, and Land Bank Subcommittees Collected data in 8 of the 9 NSP target areas to inform the City s NSP planning and implementation decision-making process Invested $500,000 to support the City s NSP planning and implementation process To date, the City has collected approximately 120 applications for review

20 4) Delivery System Build local property acquisition/disposition system Coordinate with city and state Utilize/build LBA capacity Identify/enhance capacity for strategy development and project management Partner with NCST, REO Clearinghouse Develop system to vet for-profit developers Create/expand capacity for market analysis, title research and clearance, due diligence Engage neighborhood stakeholders in the decision-making process Determine appropriate role of CDCs and other community based organizations

21 5) Capital & Lending Initial pilot projects: In NSP areas w/ market potential Boston Edison MorningSide/East English Village Other possible pilot projects: Other areas w/ market potential Grandmont Rosedale University District

22 Boston-Edison: Vacant Property Ownership and Delinquent Taxes

23 MorningSide/East English Village: REO Property and Listing Price

24 5) Capital & Lending First mortgage loans Start-up = $500,000; Total = $7,500,000 Subordinated direct short-term investor loans Start-up = $80,000; Total = $5,000,000 Loan guarantees Start-up = $80,000; Total = $8,000,000 First mortgage investor shared risk loan pool Start-up = N/A; Total = $6,000,000

25 Capitalization $2 million total; $600k in from FPR grant Spent or allocated: $300k data platform $43k land use framework $50k land bank TA $57k market study $22k AVM models $47k partner TA, VPLT support $60k response coordinator Unspent: $1 million land bank operations $21k un-programmed $400k Detroit Collaborative Design Center

26 Thank You!! Contact Information: Deborah Younger, Executive Director Detroit LISC p: ext. 12 e: Stephen Bancroft, Executive Director Detroit Office of Foreclosure Prevention and Response p: (313) e: Heidi Mucherie, Executive Director Community Legal Resources p: (313) e: Steve Ogden, Executive Director Next Detroit Neighborhood Initiative p: (313) e: