U.S. Department of Housing and Urban Development NSP Land Bank Webinar June 3, 2014 2:00 PM EDT Community Planning and Development
Presenters and Q&A Format Presenters Bill Whitney, Cuyahoga County Land Reutilization Corporation Michele Wildman, Michigan State Housing Development Authority (MSHDA)/Michigan Land Bank (MLB) Les Warner, ICF International Hunter Kurtz, U.S. Department of Housing and Urban Development John Laswick, U.S. Department of Housing and Urban Development David Noguera, U.S. Department of Housing and Urban Development How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 2
Agenda Opening remarks and poll question Overview of Cuyahoga County, OH Land Bank Program Overview of Michigan Land Bank Program Land Bank Policies and Notices Q&A 3
Bill Whitney 4
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CCLRC Acquisition Pipelines HUD Fannie Mae Tax Foreclosure REOs Select Donations Properties confiscated by the Courts 6
CCLRC Revenues $7 Million Annually from Delinquent Tax Penalties and Interest NSP 1, 2, 3 $10 Million Bond Revenue $11.8 Million AG Settlement $5 Million County Prosecutor $10 Million Hardest Hit Fund (HHF) $5 Million Property Sales $1 Million Miscellaneous Grants $3 Million Demolition Reimbursements 7
CCLRC Production Acquisitions 4,110 Demolitions 2,571 Rehabilitations 850 8
CCLRC Collaborations 9
Questions? How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 10
Michigan Land Bank Established under Michigan PA 258 of 2003 Authorizes MLB to enter into Inter-Governmental Agreements with counties and the City of Detroit to create their own local land banks Independent Authority within the Michigan State Housing Development Authority Had partnerships with City s in 6 of 12 Michigan cities that were part of the NSP2 Consortium 11
Michigan Land Bank (cont.) 12
Michigan Land Bank (cont.) Current Projects include: Large Scale Demolition Quiet title actions EPA Revolving Loan Fund Redevelopment of State Fairgrounds Land Banking in several strategic projects throughout Michigan NSP1 and NSP2 disposition Ongoing maintenance 13
Michigan NSP Disposition Strategies Partnerships with non-profit organizations Participation in LIHTC transactions Demolition & Side-Lot Sales Detroit auction strategy 14
Questions? How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 15
NSP Disposition Policies for Land Banks Land banks may dispose of properties in two ways: A. Repay the total NSP investment made for each property to the program (opt out of program), or B. Complete the disposition if the NSP properties have met a national objective for both acquisition and disposition. 16
NSP Disposition Policies for Land Banks If the land bank chooses to meet both national objectives, it must comply with four rules: 1. Demonstrate that the property s disposition contributes to stabilizing the neighborhood. 2. Establish Fair Market Value (by Broker s Price Opinion, or appraisal for properties over $25,000) and sell or auction the property. Sale proceeds are program income. 17
Disposition Policies for Land Banks 3. Make up any difference between sale price and Fair Market Value, using non-federal funds, if the property sold for less than FMV. If sold for more than FMV, the proceeds are NSP program income; 4. Complete the environmental review process that was started when property was acquired. 18
NSP Disposition Policies for Land Banks If taking a property out of the program, the Change of Use Provisions only apply to properties in which $25,000 or more has been invested to acquire and improve. However, costs must be documented to the Field Office for properties under $25,000. 19
Related Issues 1. Is an auction an acceptable method of disposition of land bank properties? Properties to be sold at auction, at this point, will have met the national objectives for both acquisition and disposition. Therefore, they do not need to be taken out of the program. 20
Related Issues (cont.) 2. What level of property maintenance is required to satisfy the national objective? The land bank kept it boarded up and in reasonable condition and not a blighting influence (e.g.by repairing holes in the roof) Maintained the property on a regular basis by; cleaning the grounds, mowing the grass and keeping sidewalks passable. The land bank should have procedures for responding to neighborhood complaints. 21
Related Issues (cont.) 3. Are there specific requirements on documentation - related to period of time of maintenance, requisite paperwork or other requirements? The answers to questions 1 and 2 should have been followed from the time of acquisition of the property by the land bank. Employee time sheets and/or third party contracts should show regular work on the properties. Photographs and work reports demonstrate the efforts made. Letters from the neighborhood association would also provide confirmation. 22
Questions? How to ask questions Questions Box: You may enter your question into the question box at any time during the presentation. We will read question aloud and answer during allotted Q&A session. Ask audible questions: If listening to the presentation over the phone, make sure to press in your audio pin provided (#xx#). Raise your hand and we will unmute your line to ask your question. 23
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Please Give Us Your Feedback Answer a few short questions Link: https://www.surveymonkey.com/s/landbank_060 32014 25