National Vacant Properties Campaign presented by Don Chen, Smart Growth America.

National Vacant Properties CampaignNational Vacant Properties CampaignNational Vacant Properties CampaignNational Vacant Properties Campaign

presented by presented by

Don Chen, Smart Growth AmericaDon Chen, Smart Growth America

Smart Growth AmericaSmart Growth AmericaSmart Growth AmericaSmart Growth America

What Are Vacant Properties?What Are Vacant Properties?What Are Vacant Properties?What Are Vacant Properties?

• Abandoned Buildings Abandoned Buildings • Single Family Residential (Owner) Single Family Residential (Owner) • Multi-Family (Absentee) Multi-Family (Absentee) • Commercial and IndustrialCommercial and Industrial

• Vacant Lots – No Legitimate UsesVacant Lots – No Legitimate Uses• Substandard and Unsafe Buildings & Substandard and Unsafe Buildings &

HousesHouses

Hidden Community AssetsHidden Community AssetsHidden Community AssetsHidden Community Assets

• On average, 15 percent of city land is On average, 15 percent of city land is usable but vacant; equivalent to 12,367 usable but vacant; equivalent to 12,367 acres (19.3 square miles) for the typical acres (19.3 square miles) for the typical city.city.

• Cities in the South reported an average Cities in the South reported an average of 19.3 percent vacant land.of 19.3 percent vacant land.

• In the Northeast, there is an abandoned In the Northeast, there is an abandoned property for every 52 households.property for every 52 households.

Source: Pagano & Bowman, Brookings Institution, 2000Source: Pagano & Bowman, Brookings Institution, 2000

How Do Vacant Properties How Do Vacant Properties Hurt Communities?Hurt Communities?

How Do Vacant Properties How Do Vacant Properties Hurt Communities?Hurt Communities?

• In Philadelphia, homes within 150 feet of an In Philadelphia, homes within 150 feet of an abandoned and vacant property lost $7,627 abandoned and vacant property lost $7,627 of its value; within 150 to 300 feet, $6,819; of its value; within 150 to 300 feet, $6,819; within 300 to 450, $3,542.within 300 to 450, $3,542.

• The 11,000 vacant The 11,000 vacant properties in Rhode properties in Rhode Island’s five major Island’s five major cities are estimated to cities are estimated to cost themcost them $1.3 billion $1.3 billion in property valuein property value..

How Much Tax Revenue is Lost?How Much Tax Revenue is Lost?and how much could be gained?and how much could be gained?How Much Tax Revenue is Lost?How Much Tax Revenue is Lost?and how much could be gained?and how much could be gained?

• In St. Paul, a rehabilitated property is In St. Paul, a rehabilitated property is estimated to produce 11 times more tax estimated to produce 11 times more tax revenue than an abandoned and vacant revenue than an abandoned and vacant property.property.

• The St. Paul study also estimated that the The St. Paul study also estimated that the rehabilitation of a property “generates rehabilitation of a property “generates $13,507 in enhanced property tax $13,507 in enhanced property tax revenues” because of the revenues” because of the private private investment in surrounding properties.investment in surrounding properties.

How Do Vacant Properties How Do Vacant Properties Affect Other City Services?Affect Other City Services?How Do Vacant Properties How Do Vacant Properties Affect Other City Services?Affect Other City Services?

• Over 12,000 fires are reported in vacant structures Over 12,000 fires are reported in vacant structures every year, resulting in $73 million in property every year, resulting in $73 million in property damage (70 percent are suspicious or incendiary).damage (70 percent are suspicious or incendiary).

• In Austin, researchers found that 83 percent of In Austin, researchers found that 83 percent of unsecured vacant buildings showed evidence of unsecured vacant buildings showed evidence of illegal activities; crime rates on blocks with such illegal activities; crime rates on blocks with such properties were twice as high as similar streets properties were twice as high as similar streets without vacant properties.without vacant properties.

• In Richmond, city officials found that proximity to a In Richmond, city officials found that proximity to a vacant property was the most closely correlated vacant property was the most closely correlated factor in predicting neighborhood criminal activity.factor in predicting neighborhood criminal activity.

Costs of Maintenance and SafetyCosts of Maintenance and SafetyCosts of Maintenance and SafetyCosts of Maintenance and Safety

• St. Paul, MN spends an estimated $205,304 St. Paul, MN spends an estimated $205,304 just to maintain abandoned properties just to maintain abandoned properties (boarding them up, cutting grass, hauling (boarding them up, cutting grass, hauling trash, shoveling snow, repairing sidewalks, trash, shoveling snow, repairing sidewalks, etc.)etc.)

• In Trenton, NJ, these maintenance costs In Trenton, NJ, these maintenance costs range from $500,000 to well over $1 million range from $500,000 to well over $1 million per year. per year.

The Barriers to Reclaiming The Barriers to Reclaiming Vacant PropertiesVacant Properties

The Barriers to Reclaiming The Barriers to Reclaiming Vacant PropertiesVacant Properties

Four Barriers to Reclaiming Four Barriers to Reclaiming Vacant PropertiesVacant Properties

Four Barriers to Reclaiming Four Barriers to Reclaiming Vacant PropertiesVacant Properties

I.I. Code EnforcementCode Enforcement

II.II. Tax DelinquencyTax Delinquency

III.III. Title ProblemsTitle Problems

IV.IV. Local Government Local Government PoliciesPolicies

Source: Frank Alexander, Source: Frank Alexander, Renewing Public Assets for Renewing Public Assets for Community DevelopmentCommunity Development, LISC, 2000., LISC, 2000.

I. Code EnforcementI. Code EnforcementI. Code EnforcementI. Code Enforcement

• Outdated housing and building codesOutdated housing and building codes• Ineffective Enforcement ProceedingsIneffective Enforcement Proceedings• Time DelaysTime Delays• Ineffective RemediesIneffective Remedies

• Code Revision – Building, Housing, Vacant LandCode Revision – Building, Housing, Vacant Land• Shift from In Personam to In Rem JurisdictionShift from In Personam to In Rem Jurisdiction• Shorter Time PeriodsShorter Time Periods• Super Priority Status for Abatement LiensSuper Priority Status for Abatement Liens

The BarriersThe Barriers

The OpportunitiesThe Opportunities

II. Tax DelinquencyII. Tax DelinquencyII. Tax DelinquencyII. Tax Delinquency

• High Delinquency RatesHigh Delinquency Rates• Taxes Exceed Fair Market ValueTaxes Exceed Fair Market Value• Lengthy Tax Foreclosure ProceduresLengthy Tax Foreclosure Procedures• Bulk Sale of Tax LiensBulk Sale of Tax Liens

The BarriersThe Barriers

The OpportunitiesThe Opportunities• Reform of Tax Foreclosure LawsReform of Tax Foreclosure Laws• Shorter Time PeriodsShorter Time Periods• Complete Notice to All Interested PartiesComplete Notice to All Interested Parties• Halt the Sale of Tax LiensHalt the Sale of Tax Liens

III. Title ProblemsIII. Title ProblemsIII. Title ProblemsIII. Title Problems

• Lack of Probate (Heir Property)Lack of Probate (Heir Property)• Defunct CorporationsDefunct Corporations• Open Mortgages of RecordOpen Mortgages of Record• Prior ForeclosuresPrior Foreclosures

• Judicial Enforcement of Taxes and Liens Judicial Enforcement of Taxes and Liens • Title Company Role in Statutory ReformsTitle Company Role in Statutory Reforms• Notice to All Parties Revealed by Title ExamNotice to All Parties Revealed by Title Exam

The BarriersThe Barriers

The OpportunitiesThe Opportunities

IV. Local Government PoliciesIV. Local Government PoliciesIV. Local Government PoliciesIV. Local Government Policies

• Inadequate Data on Delinquencies and ViolationsInadequate Data on Delinquencies and Violations• Inadequate Staff for Inspections & EnforcementInadequate Staff for Inspections & Enforcement• Inadequate Disposition PoliciesInadequate Disposition Policies

• Creation of G.I.S. DatabaseCreation of G.I.S. Database• Coordination Between Tax Officials and Planning DepartmentsCoordination Between Tax Officials and Planning Departments• Modification of Disposition Policies Modification of Disposition Policies • Single Purpose Entities – Land Bank AuthoritiesSingle Purpose Entities – Land Bank Authorities

The BarriersThe Barriers

The OpportunitiesThe Opportunities

Preventing AbandonmentPreventing Abandonment

• Build the capacity of property owners and Build the capacity of property owners and managers to preserve work force housingmanagers to preserve work force housing

• Housing inspection programs and ordinances Housing inspection programs and ordinances • Pro active code enforcement—slumlord task Pro active code enforcement—slumlord task

forcesforces• Community Oriented Policing partnershipsCommunity Oriented Policing partnerships• Foreclosure prevention and other ways of Foreclosure prevention and other ways of

preserving single-family homespreserving single-family homes

Assessment—Know Your Assessment—Know Your TerritoryTerritory

• Develop a property information systemDevelop a property information system• Identify ‘early warning’ factorsIdentify ‘early warning’ factors• Make it user-friendly for communitiesMake it user-friendly for communities

• Inventory vacant properties Inventory vacant properties • Building characteristics and ownershipBuilding characteristics and ownership• Investigate site conditionsInvestigate site conditions

• Assess local govt. programs and Assess local govt. programs and ordinancesordinances

• Understand particular local conditions Understand particular local conditions affecting abandonmentaffecting abandonment

StabilizationStabilization

• Exercise local code enforcement powers Exercise local code enforcement powers to abate unsafe/dangerous conditionsto abate unsafe/dangerous conditions• Criminal Prosecution and Civil EnforcementCriminal Prosecution and Civil Enforcement• Administrative Abatement ProcessesAdministrative Abatement Processes

• Tailor the appropriate remedy to the Tailor the appropriate remedy to the situationsituation

• Investigate site conditions and create Investigate site conditions and create ownership profilesownership profiles

• Receivership as temporary remedy for Receivership as temporary remedy for substandard housingsubstandard housing

Rehabilitation Rehabilitation Resources & AssistanceResources & Assistance

• Financial resources & technical assistanceFinancial resources & technical assistance• Rehabilitation incentives:Rehabilitation incentives:

• Grants and loansGrants and loans• Permit streamliningPermit streamlining

• Capacity building in property Capacity building in property management and ownershipmanagement and ownership• Apartment Owner Associations Trainee Apartment Owner Associations Trainee

ProgramsPrograms

• Partnerships with CDCs, nonprofit, and Partnerships with CDCs, nonprofit, and private financial institutionsprivate financial institutions

Property Transfer or AcquisitionProperty Transfer or Acquisition

• Legal procedures – property rights – Legal procedures – property rights – and due processand due process

• Tax delinquency and foreclosureTax delinquency and foreclosure• Other acquisition and disposition Other acquisition and disposition

strategiesstrategies• Land bankingLand banking

Long Term Revitalization Long Term Revitalization Policies and ProgramsPolicies and Programs

• Comprehensive plans and strategic Comprehensive plans and strategic frameworksframeworks

• Affordable housing policies and Affordable housing policies and programsprograms

• Building and Rebuilding MarketsBuilding and Rebuilding Markets• GOAL:GOAL: foster a climate that attracts foster a climate that attracts

residents and private investorsresidents and private investors

Opportunities for RevitalizationOpportunities for RevitalizationOpportunities for RevitalizationOpportunities for Revitalization

• Infill Development —Infill Development —channel growthchannel growth

• Affordable and Work Affordable and Work Force HousingForce Housing

• Rebuilding Rebuilding NeighborhoodsNeighborhoods

• Crime ReductionCrime Reduction• Livable Communities Livable Communities

and Prosperous and Prosperous RegionsRegions

National Vacant Properties CampaignNational Vacant Properties CampaignNational Vacant Properties CampaignNational Vacant Properties Campaign

• Practitioners (Property Owners and Practitioners (Property Owners and Government Agencies) Toiling in Isolation Government Agencies) Toiling in Isolation without Planswithout Plans

• Complex Issues--Difficulty Making the Complex Issues--Difficulty Making the Case for Action (Inventory, Clearing Title, Case for Action (Inventory, Clearing Title, Reforming Regulations)Reforming Regulations)

• Lack of Major Clearinghouse for Lack of Major Clearinghouse for Information, Best Practices and LearningInformation, Best Practices and Learning

• No Way to Connect with Consultants, No Way to Connect with Consultants, Assistance, Experts to Help CommunitiesAssistance, Experts to Help Communities

Campaign GoalsCampaign GoalsCampaign GoalsCampaign Goals

• Build a Coordinated Movement Build a Coordinated Movement and a Network of Expertsand a Network of Experts

• Communications Tools to Make Communications Tools to Make VP Reclamation a National VP Reclamation a National PriorityPriority

• Provide Communities with Provide Communities with Information about Policy Information about Policy Innovations and Cutting Edge Innovations and Cutting Edge ResearchResearch

• Technical Assistance: Community Technical Assistance: Community Workshops and Longer-Term Workshops and Longer-Term Intensive PartnershipsIntensive Partnerships

Initial ProgressInitial ProgressInitial ProgressInitial Progress

• Assembling Partners, Funders and AdvisorsAssembling Partners, Funders and Advisors• Generating Buzz at Conferences (Smart Growth in Generating Buzz at Conferences (Smart Growth in

New Orleans, APA in Denver)New Orleans, APA in Denver)• Brochure and Web Site Brochure and Web Site (www.vacantproperties.org)(www.vacantproperties.org)• Preparation of Technical Assistance and Research Preparation of Technical Assistance and Research

PapersPapers

• July 9th Roll OutJuly 9th Roll Out

Current EffortsCurrent EffortsCurrent EffortsCurrent Efforts

• Articles and Reports (briefing for smart growth Articles and Reports (briefing for smart growth funders, magazine articles, op eds)funders, magazine articles, op eds)

• Information Resources for Internet Portal (best Information Resources for Internet Portal (best practices, recent research, organizational resources, practices, recent research, organizational resources, case studies)case studies)

• Technical Assistance Workshops; Working Directly Technical Assistance Workshops; Working Directly with Some Communities (Las Vegas, NV, etc.)with Some Communities (Las Vegas, NV, etc.)

• Outreach through Speeches and Presentations Outreach through Speeches and Presentations (National Trust for Historic Preservation Conference (National Trust for Historic Preservation Conference in Denver, Partners for Smart Growth in Portland, in Denver, Partners for Smart Growth in Portland, OR)OR)

• Research & Policy Forum (June 2004)Research & Policy Forum (June 2004)

Additional ResourcesAdditional Resources

• National Vacant Properties Campaign National Vacant Properties Campaign www.vacantproperties.orgwww.vacantproperties.org

• Smart Growth America: Smart Growth America: • www.smartgrowthamerica.orgwww.smartgrowthamerica.org• ICMA’s Case Studies: ICMA’s Case Studies:

www.icma.org/vacantpropertieswww.icma.org/vacantproperties• LISC: www.liscnet.org/resources LISC: www.liscnet.org/resources • Fannie Mae Foundation: www.knowledgeplex.orgFannie Mae Foundation: www.knowledgeplex.org• Brookings Center on Urban & Metropolitan Brookings Center on Urban & Metropolitan

Policy: www.brook.edu Policy: www.brook.edu