Systemic Approaches to Vacancy & Blight:
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1 Systemic Approaches to Vacancy & Blight: A Glimpse of What s Working NPCNYS Annual Conference Albany, NY Thursday, October 8, 2015 Tarik Abdelazim, Associate Director of National Technical Assistance, Center for Community Progress Katelyn Wright, Executive Director, Greater Syracuse Land Bank
2 About Us Center for Community Progress We are the only national nonprofit solely focused on building a future in which entrenched, systemic blight and vacancy no longer exist We serve communities through policy development, technical assistance, leadership development, education, and research Since 2010: Technical assistance has been provided in more than 150 communities & trainings have reached 1,000s of professionals 7 th National Reclaiming Vacant Properties Conference: September 28-30, 2016 in Baltimore, MD
3 Presentation Outline I. Blight: What is it, and why care? II. Systems Approach III. Prevention Strategic Code Enforcement Demolition Delinquent Property Tax Enforcement IV. Land Banks Innovative Practices V. Reuse Planning Alternate Reuse
4 I. Blight: What is it and why care?
5 I. Blight: What is it and why care? The Human Costs of Blight Encourages criminal activity; increases rate of fear & anxiety; fractures neighborhoods; undermines public health. Garvin, et al. (2013) More Than Just An Eyesore: Local Insights And Solutions on Vacant Land And Urban Health. Journal of Public Health. The Economic Costs of Blight Vacancy, tax delinquency and foreclosure can lower property values by more than 9% 1 Oklahoma City loses nearly $20 million in potential revenue annually because of vacant and abandoned properties. 2 1 Stephen Whitaker and Thomas Fitzpatrick (2011), The Impact of Vacant, Tax-Delinquent and Foreclosed Property on Sales Prices of Neighboring Homes, Federal Reserve Bank of Cleveland 2 Addressing Vacant and Abandoned Buildings in Oklahoma City: Prevalence, Costs, and Program Proposals, GSBS Richman Consulting (2013) The Fiscal Costs of Blight A draft 2015 study estimates that Atlanta spent more than $1 million in police and fire services to vacant properties in 2012.
6 II. Systems Approach Diagram of Full Cycle of Property Revitalization PREVENTION Code Enforcement Property Tax Enforcement PROPERTY DATA MARKET CONDITIONS Receivership REUSE PLANNING COMMUNITY GOALS ACQUISITION AND MAINTENANCE Land Banks Land Banking
7 III. Prevention: Code Enforcement Innovative Practice New Orleans, LA ( ) Problem: Owners of blighted and vacant properties (40,000+) had little incentive to pay code liens, since City had no effective and efficient way to compel compliance or transfer of ownership. Solution: Give code lien super priority status (required reform of state law), streamline enforcement process, and enforce lien via Sheriff s sale or demolition. Results: In less than three years
8 III. Prevention: Demolition Cost-benefit Analysis City of Cleveland ( ) A 2014 study 1 analyzed the economic impacts of 6,000 demolitions in Cleveland, which cost roughly $56.3 million. Total demolition benefits of $78.9 million! Return on investment as high as 13.4 in real estate equity for every demolition dollar spent, but large ROIs limited primarily to high and moderately functioning markets. Clear trend of decreasing mortgage foreclosure rates in areas where demolition occurred, regardless of neighborhood market strength. This last October, Cuyahoga County Council approved a $50 million bond ordinance to demolish 5,000 condemned properties across the County and in Cleveland! 1 Estimating the Effect of Demolishing Distressed Structures in Cleveland, OH, , Griswold Consulting Group, 2014,
9 III. Prevention: Tax Enforcement Innovative Practice State of Michigan Michigan State Foreclosure Law Comparison Source of image:
10 III. Prevention: Tax Enforcement Can you analyze economic and community impacts? Our report on bulk tax lien sale for City of Rochester (NY) Most effective intervention to reduce negative impacts of problem properties is to force change of ownership sale of tax liens had no rehabilitative effect! Role of Investors in the 1-3 Family REO Market The Case of Cleveland 1 REO properties acquired by investors had higher rates of failure, and failure rates highest for larger investors and out-of-state investors REO properties acquired by a public entity (land bank, nonprofit, CDC, etc) were 3x more likely to have a beneficial outcome 1 The December 2013 study, authored by Frank Ford, April Hirsch, et al., can be found here:
11 IV. Land Banks Land Banks and Land banking A land bank is a public authority or nonprofit that focuses on the conversion of vacant, abandoned, tax-delinquent and foreclosed properties into productive use. This publication & others can be found at Map of operating land banks, 2014 Source: Community Progress Land Bank Information HQ
12 IV. Land Banks Key Elements of Land Banking An alternative to the speculative auction that generates more predictable outcomes consistent with community needs Will always need some level of support cash or in-kind proportional to the scope and scale of vacancy and blight it is expected to resolve Connected to tax foreclosure process Alignment with other blight strategies Policy-driven, transparent, accountable transactions Scaled in response to local land use goals Emphasis on community engagement
13 IV. Land Banks Innovative Practice #1: Community Engagement Genesee County Land Bank Dedicated Resources: Community Engagement Coordinator & Consultant Clean & Green Program 46 Groups helped maintain 1,360 lots and complete more than 10,000 mowings in 2013 Supported by local foundations, and groups receive unrestricted stipend Annual celebration and review by participants to improve program Property Conditions Survey & Hardest Hit Funds $22.7 M in Hardest Hit Funds (1,820 demos)
14 IV. Land Banks Innovative Practice #2: Housing Programs Cuyahoga County Land Bank Discovering Home Program Nearly 600 refugees settle in Cleveland area annually With no established credit history, housing is major challenge Partnership launched in 2010 ISC searches land bank s online property database, selects home based on nearby amenities, and land bank donates to ISC ISC and land bank split renovation costs, if needed ISC rents to refugees, and requires financial literacy course
15 IV. Land Banks Innovative Practice #3: Resident-driven redevelopment Atlanta Fulton County Land Bank Betmar Village (opened March 2014) Land Bank purchased a 28-unit abandoned apartment, and boarded and secured Opened discussions with Neighborhood Planning Unit, existing civic infrastructure that has advisory role in planning and zoning issues All parties reached agreement on affordable senior housing project, and developer was recruited New, 48-unit senior housing involved seven layers of financing, is silver LEEDcertified, and includes Community Room to foster strong relations with neighbors
16 IV. Land Banks Innovative Practice #4: Deep, Inclusive Coalition Macon-Bibb County Land Bank Authority Measuring the Success of Beall s Hill: 188 units of 60-year-old obsolete public housing demolished and replaced with 97 units of new, historically compatible townhomes ($19.2M HOPE VI) 42 dilapidated structures demolished 22 new homes built on vacant lots 10 historic homes rehabilitated 44 low-income home owners received financial assistance to improve their homes Street lights, sidewalks and parks added An historic, award-winning magnet elementary school has been rebuilt and expanded New home owners include Mercer faculty and staff Home ownership has increased 38% since 2000 Property values have increased an average $6,000
17 IV. Land Banks Innovative Practice #5: Opportunity + Abatement Huntingon Land Bank (WV) KISRA works with recently incarcerated men, providing wrap around supportive services, including workforce training Multi-year grant from State s Labor Department funds salaries of work crews who carry out all maintenance needs at land bank owned properties Huntington s Land Bank Labor Cost Comparison: FY2013, January October: $14,828 And positive training experience FY2014, January October: $4,858 for program participants!
18 V. Reuse Planning Sample Resources for Alternate Reuse Baltimore s Green Pattern Book ainability.org/files/ggi%20template%20view_final_c ompressed_.pdf Philadelphia Horticultural Society LandCare program Reimagining Cleveland Ideas to Action Resource Book Photo Courtesy of Kim Graziani, Center for Community Progress
19 2014 Center for Community Progress. Center for Community Progress owns all copyright for this presentation. You may reproduce copies of this presentation for non-commercial use to share with colleagues at your organization. This presentation may not be copied or reproduced for other purposes without the express written permission of Center for Community Progress. Questions about this presentation can be sent to Tarik Abdelazim, Associate Director of National Technical Assistance:
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