Tackling Blighted & Abandoned Properties

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1 Tackling Blighted & Abandoned Properties TOM STEVENSON, CCA DIRECTOR, NEIGHBORHOOD SERVICES & CODE COMPLIANCE TUESDAY, JULY 25 TH, 2013 Maryland Municipal League Annual Convention Ocean City, Maryland

2 Nirvana...

3 Reality...

4 Objectives What are blighted & abandoned properties? What are the causes? What are the effects? Discuss best practices Review available resources

5 Blighted & Abandoned Properties Defined Blighted areas show: Deterioration Inadequate or improper facilities/maintenance Existence of unsafe structures and/or equipment Negatively impacts the health, safety, or welfare of the community Abandoned suggests that: The owner has ceased to invest any resources in the property Is forgoing all routine maintenance Is making no further payments on the financial obligations Tenants may still occupy it or squatters may live there without permission.

6 What Are Some Of The Causes? Population Decline (Sprawl) Housing Crisis Declining Property Values Foreclosure Other

7 What Are The Effects? Negatively impacts peaceful enjoyment of adjoining properties Property devaluation Public nuisance Requires repeated calls for service Potential risk for first responders

8 A Few Best Practices

9 Best Practices Code Enforcement - How To Identify Routine Patrol Citizen Complaints Inter-departmental Notice Owner Notification

10 Best Practices Code Enforcement Identifying Ownership Types of Owners Owners who walked away due to foreclosure Investors who walked away due to over-extension Residents who have passed away Real Estate owned Who is the responsible party?

11 Best Practices Understand Neighborhood Market Conditions Strong Market Little or no intervention needed Fluctuating Market Functions relatively well Shows some signs of decline Distressed Market Some private investment is occurring Public investment is needed Reinvestment Area Limited to no demand, Significant decline Public Investment required

12 Best Practices Code Enforcement Taking Action Promptly eliminate nuisances (Grass, rubbish, graffiti) Aggressively pursue repair orders Determine Which properties can be repaired NOW Which properties can be repaired LATER Which properties can NOT be repaired

13 Best Practices Establish A Vacant Building Registry Created by ordinance Vacant Building Registry Identifies which neighborhoods are being most severely impacted Becomes a tool to justify the resources needed to address the problem Provides the city with an inventory Provides historical data for each property

Overview Salisbury s Registry Properties that appear to be vacant are investigated & notice sent to the owner of record Buildings vacant beyond 180 days, must

14 Overview Salisbury s Registry Properties that appear to be vacant are investigated & notice sent to the owner of record Buildings vacant beyond 180 days, must be registered ($25 annual fee) Condemned Properties Must be registered within 30 days of condemnation Rehabilitation plan Contractor information Date of completion

15 Best Practices Approaches `

16 Best Practices Tax Sale Structured to help recover lost revenue from unpaid taxes Once deemed tax delinquent, property is put up for tax sale Private investors or the city may buy the tax certificate If original owner does not redeem the property, the legal process for redeeming the title commences Requires: Legislative approval Budgetary commitment Transaction must be managed

$Best Practices Municipal Infraction Notice of Violation Failure to make required improvements$

17 Best Practices Municipal Infraction Notice of Violation Failure to make required improvements Processing Prosecution Court ordered abatement Billing Liens, etc. Pursue other assets of rightful owners

& less commonly used paths Land contracts Rent to

18 Best Practices Land Banks Requires Acquisition Management Disposition Facilitates both traditional & less commonly used paths Land contracts Rent to Own options Side-lot purchase programs Community gardens, etc.

19 Best Practices Receivership Create by ordinance Court appointed receivers may: Rehab Demolish Sell Partnerships Habitat for Humanity SNHS Other Community Non-Profits

20 Abandoned Property Cycle Mismanaged abandoned properties require: Constant re-inspection Reissuance of Notice of Violation Repeated Fix-n-Bill costs Significant administrative time Substantial legal council and with it, billable hours

$Pursue tax sale, municipal infraction, land banking, receivership Increase financial resources dedicated to demolition Focus on houses that can be repaired Other$

21 What Can Your Municipality Do? Pursue tax sale, municipal infraction, land banking, receivership Increase financial resources dedicated to demolition Focus on houses that can be repaired Other Group/Neighborhood clean ups Good Samaritan Law Educate the community What are we looking for? How to report properties? When to report properties?

22 What Can Your Community Do? Support the city s effort through education Report poor housing conditions, trash, tall grass, graffiti, etc. Report abandoned and/or vacant properties Report sensitive information (owner deceased/nursing home) Get everyone involved! East Austin Neighborhood Wants Code Compliance Volunteers

23 Some Available Resources Local Inventory MSDAT Safeguard Compliance Connections State Foreclosed Property Registry (DLLR)

24 Summary We discussed blighted & abandoned properties Determined the causes Identified the effects Discussed best practices Mentioned some resources

25 Questions & Contact Information Tom Stevenson, CCA Director, Neighborhood Services & Code Compliance Salisbury, Maryland Office:

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