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Baltimore’s Receivership ProgramReclaiming Vacant Properties
Pittsburgh ConferenceSeptember 24, 2007
Presented by: Julie Day, Esq. and Blair Griffith, Esq.Code Enforcement Legal Section
For additional information or questions contact:[email protected]
410-396-4140www.baltimorehousing.org
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GIS technology is utilizedin planning and selection
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Receivership
The Baltimore City Receivership process isin the City’s Building, Fire and Related Codes
Section 121
Baltimore Codes are available online at:
http://cityservices.baltimorecity.gov/charterandcodes/
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Baltimore’s Receivercan Rehabilitate
Sign contracts, borrow money usingreceiver’s lien as security
Manage the property afterrehabilitation for up to 2 years,applying any rent to retire costsof rehabilitation
Foreclose on receiver’s lien oraccept a deed in lieu offoreclosure
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or transfer the property
private sale if at fair market value and allsecured interests agree
or
public auction - publicly noticed, withbidders pre-screened for ability torehabilitate in timely manner
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Property owners can defend by:
a. Proving present ability tocomplete the razing orrehabilitation within a reasonabletime,
b. agreeing to comply with aspecified schedule for razing orrehabilitation, and
c. posting bond, in an amountdetermined by the Court, assecurity for performance of therequired work in compliance withthe specified schedule.
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Receivership has long been recognized as avalid governmental exercise of police powerin the abatement of public nuisance.
Mugler v. Kansas, 123 U.S. 623 (1887)
As nuisance abatement, it isnot a governmental taking
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.
In Baltimore, properties statutorily definedas vacant are deemed nuisances per se.
Designation as a nuisance per serecognizes the vacant building as…
(Building, Fire and Related Codes of Baltimore City (2003) §115.4)c
Can quickly address andremedy nuisance properties
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structurallyde-stabilizingsurrounding
buildings
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negatively impacting neighborhoodproperty values and overall quality of life
Neighborhoods are supported,community involvement strengthened
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a repository for trash and graffiti
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Baltimore’s Code was amended earlier this yearto include vacant commercial structures
Control of property quicklymoves to third-partydeveloper
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Target individual vacant properties
in strong neighborhoods
(before…)
Versatility - utilized flexibly – commonlyowned properties, targeted blocks orhouses
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Clustered in neighborhoods on the brink of renaissance
five adjacent fire-damaged brownstones
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become a cleared site for new in-fill construction
Frees municipal acquisitiondollars for other uses
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or commonly owned vacants
five in the same neighborhoodowned by one person
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Result Total $ to gov't
2313 Callow Ave $138,000.00 $7,955.66
1708 Druid Hill Ave $19,000.00 $2,365.19
1039 W. Lanvale Ave $33,000.00 $2,575.30
1917 McCulloh St $80,000.00 $3,477.00
912 Newington Ave $135,000.00 $17,515.95
924 Newington Ave $113,000.00 $7,761.68
$518,000.00 $41,650.07
Transferred to newowners and recoveredover $41,000 in liens,
costs and fees
Collects governmental liensand costs
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Facilitates public andprivate sector cooperation
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Monday, September 24, 2007
Court Agent & Receiver's Auctions To The Highest Bidders
7 Baltimore City Homes Requiring Renovation
10:00 A.M.: 3701 Centre Place - Two Story Townhome"Highlandtown" - Baltimore, MD 21224
Pre-Qualification is required for the following properties.
Application Deadline: Mon., Sept. 17, 2007
10:45 A.M. 502 N. Curley Street - Two Story Townhome"Ellwood Park" - Baltimore, MD 21205
11:15 A.M. 1217 N. Luzerne Avenue - Two Story Townhome "Berea" -Baltimore, MD 21213
11:45 A.M. 404 E. Federal Street - Two Story Townhome"Greenmount West" - Baltimore, MD 21202
12:20 P.M. 611 Montpelier Street - Two Story Victorian Home "Better Waverly" -Baltimore, MD 21218
1:00 P.M. 403 Presstman Street - Two Story Townhome"Druid Heights" - Baltimore, MD 21217
1:15 P.M. 2020 Division Street - Two Story Townhome"Upton" - Baltimore, MD 21217(
Auctions Today
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Timeframe from referralto transfer
Day 1 = Referral for receivership
Day 45 = Receive Title Work
Day 60 = Notice of Filing
Day 120 = Petition Served/Court Hearing
Receiver Appointment
Day 190 = Sale Ratified
Day 160 = Auction
Day 240 = Transfer to new owner
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34 completed receiverships
Over $1.9 million total sale proceeds
$368,000 in city liens and gov’t fees recovered
28 open receiverships8 auctions = additional $999,000 in proceeds
7 auctions scheduled for September 24, 2007
Progress to date
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Total
Gov't $
$368,130
$1,611,063
$304,097
$24,266
$10,162
$29,603
City Tax/Stamps Municipal Liens
State Tax/Stamps State Transfer Tax
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Unexpected surprises:
Owners resolve housing code violationsand pull permits to be able to participatein receivership auctions
Owners consent to receivership, somewith a specified stay of the receiver’sactions
Creation of recognized “comparative salevalues” utilizing auction prices to helpstabilize market
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More unexpected surprises:
Number of dead people holding title
Auction sale price less than governmentliens on property
Successful bidder becomes anotherreceivership candidate
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Top 10 Reasons BaltimoreRecommends Receiverships
1. As nuisance abatement it is not a governmental taking
2. Can quickly address and remedy nuisance properties
3. Neighborhoods are supported and community involvement strengthened
5. Versatility - utilized flexibly – commonly owned properties, targeted blocks
4. Control of property quickly moves to third-party developer
10. Assists in transferring dead people’s property
9. Can be utilized collaboratively with municipal acquisition
8. Facilitates public and private sector cooperation
7. Collects governmental liens and costs through sale proceeds
6. Frees municipal acquisition dollars for other uses
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Sheila Dixon,Mayor