Presenting a live 90 minute webinar with interactive Q&A. Td Today s faculty features:

Transcription

1 Presenting a live 90 minute webinar with interactive Q&A Foreclosed, Distressed and Abandoned Properties: Legal Challenges for Municipalities Leveraging Ordinances, Judicial and Agency Proceedings, Land Banks and Other Tools to Minimize Burdens and Maximize Opportunities TUESDAY, AUGUST 23, pm Eastern 12pm Central 11am Mountain 10am Pacific Td Today s faculty features: Dwight H. Merriam, Partner, Robinson & Cole, Hartford, Conn. David S. Silverman, Partner, Ancel Glink Diamond Bush DiCianni & Krafthefer, Chicago Julie A. Tappendorf, Partner, Ancel Glink Diamond Bush DiCianni & Krafthefer, Chicago The audio portion of the conference may be accessed via the telephone or by using your computer's speakers. Please refer to the instructions ed to registrants for additional information. If you have any questions, please contact Customer Service at ext. 10.

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5 FORECLOSED, DISTRESSED AND ABANDONED PROPERTIES: LEGAL CHALLENGES FOR MUNICIPALITIES Leveraging Ordinances, Judicial and Administrative Proceedings, Land Banks and Other Tools Tuesday, August 23, :00 pm Eastern Time Sponsored by the Legal Publishing Group of Strafford Publications

6 Today s Speakers Dwight Merriam, FAICP, Robinson & Cole, LLP 280 Trumbull Street Hartford, CT Direct Dial: dmerriam@rc.com com David Silverman, AICP, Ancel Glink 140 South Dearborn Street, 6th Floor Chicago, IL Direct Dial: dsilverman@ancelglink.com Julie Tappendorf, Ancel Glink 140 South Dearborn Street, 6th Floor Chicago, IL Direct Dial: jtappendorf@ancelglink.com 6

7 Introduction ti I. Impact to Municipalities from Vacant, Distressed & Abandoned Properties II. Enforcement Tools III. Available Strategies 7

8 Part 1: Impact on Municipalities i 8

9 The State t of the Market Each abandoned home costs the City of Chicago $34,000 annually Cost of one foreclosure is approximately $80,000 (municipal expenses, loss of value to foreclosed property and adjacent property, bank costs, etc) 9

10 Impact on Municipalities i Direct (Financial) i Indirect Costs: Costs: Decrease in Revenues (taxes, fees, utility charges) Building Inspections Maintenance and Security Legal Fees and Court Costs Demolition Crime Decrease in Property Values Devaluation of Community Character and Aesthetics ti Social Services 10

11 Part 2: Enforcement Tools A. Property Maintenance Ordinances B. Administrative Adjudication Systems C. Vacant Building Registries D. Demolition 11

12 Property Maintenance Codes Municipalities typically have either statutory or common law authority to enact property maintenance codes to regulate: Weeds, landscaping, and dead vegetation Trash, junk, and debris Building materials Accumulation of newspapers, flyers, notices Dilapidated and unsafe condition 12

13 Code Enforcement Administrative Adjudication of Code Violations (sometimes referred to as housing or municipal i court) 13

14 Vacant Building Ordinance Maintain i vacant buildings and properties Prohibit window and door boarding and encourage other security measures Remove discarded personal items, furniture, and appliances Secure critical systems (electrical, HVAC, plumbing) Secure vacant buildings (closure of windows, doors, gates and fixing broken windows) Weekly municipal inspections of vacant buildings and properties 14

15 Vacant Property Registry Require registration of all abandoned and vacant property within municipality Registration fee Post name and contact information of responsible party Monitor and enforce property maintenance 15

16 Inspections All properties in vacant property registry Systematic exterior inspections Prioritized enforcement Monitor properties for compliance Registry shared with police and fire departments 16

17 Notifications Bank and Real Estate Service Company Databases Bimonthly Blast Informational Cover Letter Foreclosure Database Explanation of Relevant Code Sections List of Local Contractors Building Securing Companies Junk Haulers Landscape Contractors 17

18 Demolition Demolition, Repair, Enclosure, or Remediation 18

19 Part 3: Available Strategiest A. Letters of Credit and other security B. Land banking C. Special financing tools D. Zoning Strategies E. Nuisance Abatement F. Development Partnerships 19

20 Letters of Credit and Other Security Understand the Status of the Project Determine status t of security for public improvements Communicate with Residents Bankruptcy Issues Future Developer Concerns security/letters of credit & transferee assumption requirements 20

21 Land Banking A land bank is a public or quasi-public authority created to efficiently acquire, hold, manage, and develop foreclosed property, as well as other vacant and abandoned properties 21

22 Financing i for Landbanking Federal funds Taxes Bonds Mortgages Installment Purchase Agreements 22

23 Other Finance Mechanisms Tax Increment Financing Other special district programs authorized under state law 23

24 Zoning Strategiest Zoning Strategies Diversification of Land Uses 24

25 Zoning Strategiest 25

26 Zoning Strategiest Allow modest improvements to existing nonconforming properties Relief to distressed properties to reposition them for resale/redevelopment Zoning modifications for stalled developments Be flexible & creative 26

27 Diversification ifi of Land Uses Retail Generates sales tax Service Increases day-time population p -- more sales tax from restaurants and convenience- oriented retailers Generates traffic complementary to retail Can generate sales tax Office Industrial Enhances utility taxes Increases day-time population 27

28 Nuisance Abatement t General common law authority to abate nuisances 28

29 Development Partnerships Opportunity to redevelop areas using public-private partnerships 29

30 Q&A Dwight Merriam, FAICP, Robinson & Cole, LLP, David Silverman, AICP, Ancel Glink Julie Tappendorf, Ancel Glink 30