Vacant Properties Campaign

Transcription

1 Vacant Properties Campaign

2 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

3 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

4 2010 Census McKees Rocks Total housing units 3,620 Occupied housing units 2,889 Vacant housing units 731

5 2010 Census Stowe Township Total housing units 3,539 Occupied housing units 2,995 Vacant housing units 544

6 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 Island s five major cities are estimated to cost them $1.3 billion in property value.

7 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.

8 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.

9 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.

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

12 Assessment Know 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

13 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

14 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

15 Property Transfer or Acquisition Legal procedures property rights and due process Tax delinquency and foreclosure Other acquisition and disposition strategies Land banking

16 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

17 Opportunities for Revitalization Infill Development channel growth Affordable and Work Force Housing Rebuilding Neighborhoods Crime Reduction Livable Communities and Prosperous Regions

18 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

19 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

20 Recycling abandoned properties, while not a traditional role of government, "is as fundamental a public service as police protection, fire protection and street sweeping."

21 New Tools WE HAVE Category: ACQUISITION Real Estate Tax Delinquency Law: Donation

22 What does it do? Establishes a procedure to coordinate the three taxing bodies waiver of their tax claims upon receipt by one of them of donated tax delinquent property.

23 Type of property/property characteristics? Tax delinquent. Where does it apply? What jurisdictions? Everywhere in Pennsylvania.

24 Who initiates? Who can make this happen? A tax delinquent property owner offers the property to one of the taxing bodies WE PROPOSE Property Donation Week

25 What is required to use this law? Tax delinquency; available owner.

26 How do you do it? WE PROPOSE; Sto-Rox School District, McKees Rocks Borough, Stowe Township and Allegheny County designate October 9th through the 15th Property Donation Week

27 Qualifying Properties Property must NOT be condemned Property deed must be clear of any liens/loans except from the three taxing bodies Property must be livable Properties must be located in Mckees Rocks Borough or Stowe Township

28 Procedures Advertise Property Donation Week Each community will except first ten homes that meet all the qualifications Once deeds are determined advertise for sealed bids from the public.

29 Qualifying Buyer Must NOT be behind on taxes on other properties Purchaser must occupy home for five years Buyer must have home up to code in 18 months Highest sealed bid of qualifying buyer will be awarded deed. 10% of bid must be submitted with bid and remainder paid in full in 60 days.

30 Home Buyers Stipulations Buyer must occupy property for 5 years If buyer sales home or moves out prior to end of the fifth year they will be responsible for a portion of taxes forgiven - 1st year will be responsible to pay 100% of taxes - 2 nd year 75% of taxes - 3 rd year 50% of taxes - 4 th year 25% of taxes - 5 th year 15% of taxes - 6 year Nothing

31 Proceeds of sale of homes Administration charges, legal fees and advertising will be subtract from total of sale. Along with 20% to be set in an account for demolition and beautification of the two communities Remainder of proceeds: School district 64% Borough/Township 23% County 13%

32 Proposed Acquisition Schedule First October 2011 Second April of 2012 October 2012 Two every year after, which calculates to 20 homes per community a year. At end of year 5 we will have 200 homes back on the tax roll.

33 Additional Resources National Vacant Properties Campaign Smart Growth America: ICMA s Case Studies: LISC: Fannie Mae Foundation: Brookings Center on Urban & Metropolitan Policy: