LISC Land Data Initiative Presented by Teal Horsman, The Catalytic Fund
LAND BANKING A TOOL FOR URBAN PLANNING AND COMMUNITY DEVELOPMENT
WHAT IS A LAND BANK? Public or community-owned entities created for a single purpose: To Acquire Manage Maintain Repurpose vacant, abandoned and foreclosed properties. (Source: Center for Community Progress)
WHY A LAND BANK? Parcels of property lie dying in a state of vacancy, abandonment and deterioration. In a weak economy there is insufficient demand or value to justify resolution to some of the barriers. (i.e. tax delinquency) The owners of these properties have made a financial decision to abandoned them or ownership has become highly fractured.
THE ECONOMIC TOLL Philadelphia: Economic toll vacant and abandoned properties impose on communities: Reduced market value by 6.5-20% 17,000 vacant properties = $20 Million in City services a year $8 Million goes towards code enforcement http://www.pittsburghquarterly.com/ Cleveland: For 1 year it cost the City $75.00 a day until the property is demolished $27,000 $270,000 $540,000 1 Year 10 Years 20 Years Approximate Cost to demolish a house is $8,000-$10,000 h"p://www.cleveland.com/
THE LAND BANK PROPERTY CYCLE Land banks treat properties as real estate, not as a disposable commodity that, once used, no longer has a meaningful purpose. Acquisition and Maintenance Streamlining the purchasing process for prospective developers Overseeing the redevelopment of acquired properties
LAND BANK HISTORY 1971 1st major contemporary land bank established in USA is: St. Louis Land Reutilization Authority 1976 Ohio authorized the establishment of the Cleveland Land Bank Kentucky adopted land bank enabling legislation providing authorization for the Louisville Land Bank. 1988 1990 Georgia passed enabling legislation. A year later, the Atlanta Land Bank was established. Genesee County Land Bank of Flint, Michigan. Created in 2002, the state authorized the land bank two later. Created land bank fast track authority 2004 Maryland, Texas, Kansas, and Alabama 2007-2010 State of Georgia enacted in 2012 the Georgia Land Bank Act
KENTUCKY LAND BANK LEGISLATION HB 200 ACT PROPOSED CHANGES
OVERVIEW In February (2013) Representative Joni Jenkins of District 44 introduced the bill. HB 200 ACT Proposes: Chapters 65 and 134: Add and amend sections that would impact the land bank authority and governmental units and the purchase of certificates of delinquency. (Source: http://www.lrc.ky.gov/record/13rs/hb200.htm) Certificates of delinquency = Certificates of delinquency are created when property taxes are not paid within the specified time.
CERTIFICATES OF DELINQUENCY Current Process: Allows the sale of the liability along with certain interest and fines for a period of up to 11 years and the certificates bear interest payable to holder. Current Statute: Third parties bid for certificates they wish to acquire. The third parties now become private tax collectors the proceed to collect the delinquent taxes themselves. Current Land bank: Land banks are held to private liens, including the third parties purchasers. All other taxes are extinguished. = PLACING PROPERTIES IN LIMBO FOR YEARS!
PROVISIONS Provisions in the bill would provide First right of refusal in order Cities Counties Land bank Land bank authorities to acquire certificates of delinquency and to hold, manage, sell, lease, or trade any properties acquired. Land bank authorities could issue bonds to acquire certificates of delinquency.
PROVISIONS (cont.) Court action could be initiated after one year, but would have to begin within 3 years under the expedited foreclosure process. A large share in the foreclosure process are vacant and remain vacant during the foreclosure process. The time from last payment to foreclosure sale in judicial states is 761 days, which is six months longer than in non-judicial states. (Lender Property Service)
PROVISIONS (cont.) American Mortgage Association
TRACKING OUR DYING PARCELS We need to understand our inventory 1. Data Collection Agree on parameters for data collection, information flow Inventory all properties 2. Review of Data Does it require groundwork? 3. GIS Screening
TRACKING OUR DYING PARCELS 3. GIS Screening Establishing a model for tracking information a) What data do we want?» Water Records? Vacant Property Owner Occupied» Crime Stats Code Violations Renter Occupied» Court Documents Foreclosure Hazard Property Focus Priority to address those target neighborhood for stabilization Up-to-date b) Who, When, How for updating real property information (i.e. WHEN DO WE UP-DATE CRIME STATS? WHO SHOULD DO IT? HOW DO WE CREATE A SYSTEM?)
HOW DO WE FIND A STRATEGY? We need Indicators Housing Characteristics Index (HCI) Quality of Life Index Blight INDICATORS METHODOLOGY Census Block Level Housing and Demographic Indicators, are classified in ESRI ArcGIS program called "Natural Breaks Classification statistical formula to group values based on the data distribution of the selected indicator. clusters similar groups
CREATE A MATRIX STRATEGY Sales tax Building permits New Business Lic. applicants Decline Unemployment Crime rate change PopulaGon increase
MAPPING EACH INDICATOR
SCORE CARD COLOR BOXES= BLIGHT INDEX NUMBERS=SOCIAL DEMOGRAPHICS 1 RETAIN 2 ENRICH 3 4 REINFORCE REINVENT
STRATEGY OUTPUT SCALED TO CENSUS BLOCKS 1R 2E High property values, low vacancy rates, Generally well-maintained homes, Strong, responsive real estate market PROGRAMMING: Promote neighborhood assets, provide assistance to homeowners facing foreclosure Some homes not up to modern standards, and need rehab. Some pockets of instability exist PROGRAMMING: Focused building code enforcement for targeted problem areas. improvement/purchasing programs 3R 4R
CASE STUDY: AVONDALE Summary: The Avondale Community Development Cooperation (ACDC) had a desire to collect, analyze and map baseline data for the Avondale Town Center District. This data collecting and quantifying process enables the community to measure change over time. Reasons: Tracking their own efforts Choose target buildings for acquisitions, demo, or rehab The project area consists of 39.06 acres, 145 parcels and 102 buildings
CASE STUDY: AVONDALE NEIGHBORHOOD LEVEL Hazards
CASE STUDY: AVONDALE CRIME SPOTS CRIME BY DENSITY Hazards
CASE STUDY: AVONDALE TAX FORECLOSURE PROPERTIES VACANT PARCELS
BLIGHT INDICATORS CASE STUDY: AVONDALE
CASE STUDY: AVONDALE BUILDING CONDITIONS Visual Rating Scale
OWNERSHIP CASE STUDY: AVONDALE
MARKET VALUE CASE STUDY: AVONDALE