Presentation on theme: "NEIGHBORHOOD INITIATIVE PROGRAM BEST PRACTICES FOR STRATEGIC DEMOLITION GREATER OHIO POLICY CENTER STAFF Lavea Brachman Executive Director Alison D. Goebel."— Presentation transcript:
NEIGHBORHOOD INITIATIVE PROGRAM BEST PRACTICES FOR STRATEGIC DEMOLITION GREATER OHIO POLICY CENTER STAFF Lavea Brachman Executive Director Alison D. Goebel Associate Director Marianne Eppig Manager of Research and Communications
OVERVIEW About Greater Ohio Policy Center & Ohio Housing Finance Agency Overview of the Neighborhood Initiative Program Purpose & Overview Program Guidelines Identification of Target Areas Target Area Plan Requirements Identification of Target Areas Neighborhood Types Indicators of Neighborhood Conditions & Types Example Target Areas Best Practices: Youngstown and Michigan
OVERVIEW How to Choose Buildings for Demolition Developing and Prioritizing Criteria for Demolition Potential Criteria for Demolition Example of Building Selection Best Practice: Youngstown Use of Criteria to Support Demolition Decisions Due Diligence Property Acquisition Property Acquisition & Cost Guidelines Property Acquisition Pipelines Environmental Review Historic Preservation Acquisition Timeline Acquisition & Disposition Policies Reuses of Land Why is a Land Reuse Strategy Important? Demolition, Cleaning & Greening Eligible Reuses Matching the Site & Reuse Examples of Land Reuse Property Maintenance Further Resources
GREATER OHIO POLICY CENTER: “THINK” AND “DO” TANK An outcome-oriented statewide non-profit organization that develops and implements policies and practices to: Revitalize Ohio’s urban cores and metropolitan regions Achieve sustainable land reuse and economic growth
GREATER OHIO POLICY CENTER EXPERTISE 2010 Restoring Prosperity to Ohio, a report co-written with the Brookings Institution Restoring Prosperity to Ohio 2012 technical assistance to the Attorney General’s Moving Ohio Forward program for demolition funding Moving Ohio Forward 2012 Demolition Roundtable and input into “Laying the Groundwork for Change: demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program “Laying the Groundwork for Change: demolition, urban strategy, and policy reform” 2013 policy brief on Regenerating America’s Legacy Cities Regenerating America’s Legacy Cities
OHIO HOUSING FINANCE AGENCY OHFA is a self-supporting quasi-public agency that uses federal and state resources to provide housing opportunities for families and individuals through programs designed to develop, preserve and sustain affordable housing throughout the State of Ohio. OHFA is the administrator of the state’s foreclosure prevention program, Save the Dream Ohio. OHFA website:
OVERVIEW OF THE NEIGHBORHOOD INITIATIVE PROGRAM BEST PRACTICES FOR STRATEGIC DEMOLITION
OVERVIEW OF NEIGHBORHOOD INITIATIVE PROGRAM The Ohio Finance Agency (OHFA) received approval from the U.S. Department of the Treasury to utilize up to $60 million of Ohio’s remaining Hardest Hit Funds (HHF) to assist with stabilizing local property values through the demolition of vacant homes across Ohio. The Neighborhood Initiative Program (NIP) is designed to stabilize property values by removing and greening vacant and abandoned properties in targeted areas in an effort to prevent future foreclosures for existing homeowners.
PURPOSE OF NEIGHBORHOOD INITIATIVE PROGRAM The Neighborhood Initiative Program (NIP) will fund strategically targeted residential demolition in designated areas within the state of Ohio. OHFA will partner with county Land Revitalization Corporations (“land banks”) or an entity that has signed a cooperative agreement with an established county land bank.
OVERVIEW OF NEIGHBORHOOD INITIATIVE PROGRAM NIP will be available to the 16 Ohio counties that have an established land bank. OHFA has issued a Request for Proposals from the state’s county land banks. Request for Proposals The program will begin in early 2014 and conclude in 2017.
OVERVIEW OF NEIGHBORHOOD INITIATIVE PROGRAM OHFA has contracted GOPC to advise OHFA and applicants on the implementation of the Neighborhood Initiative Program (NIP). Assistance includes: Consultation with applicants regarding best practices for the selection of neighborhoods and properties for the program Technical advice to eligible applicants in responding to the RFP for the NIP
OVERVIEW OF NEIGHBORHOOD INITIATIVE PROGRAM Program applicants must focus on: Target areas Demolition and greening of abandoned residential properties Preventing further reduction in property values Preventing possible foreclosure of existing residential homes
GUIDELINES OF THE NEIGHBORHOOD INITIATIVE PROGRAM Only vacant and abandoned 1-4 unit residential properties with a unique address that qualify for lawful demolition under state or federal law are eligible for NIP funding. Applicants will be responsible for property acquisition, environmental assessment and remediation, demolition, greening, and ongoing maintenance of properties. The maximum amount of assistance per residential property is $25,000, which may only be used for pay off of a loan, approved demolition, remediation and greening of the site, maintenance, and administration for up to three years or until the final disbursement, whichever is later.
GUIDELINES OF THE NEIGHBORHOOD INITIATIVE PROGRAM NIP applicants must submit a strategic plan that proposes selective or wholesale acquisition and demolition of vacant and blighted properties in target areas. This should be part of a larger comprehensive strategy to stabilize home values and prevent foreclosure.
GUIDELINES OF THE NEIGHBORHOOD INITIATIVE PROGRAM The strategic plan should address three key elements: 1.Identification of target areas 2.Source of properties to be acquired 3.Maintenance and/or redevelopment of vacant land
IDENTIFICATION OF TARGET AREAS BEST PRACTICES FOR STRATEGIC DEMOLITION
TARGET AREA PLAN REQUIREMENTS For each target area, applicants should explain the reason the area was selected and how the strategy will reduce foreclosures for existing homeowners by: Increasing the value of surrounding properties, Attracting private investment and development, or Supporting current investment and development.
IDENTIFICATION OF TARGET AREAS Chart from “Laying the Groundwork for Change: Demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program, Sept 2012 The criteria in these sections of the chart can assist in the identification and selection of target areas for demolition
TARGET AREA PLAN REQUIREMENTS Strategies for targeted demolition must align with an appropriate neighborhood type. The strongest plans will likely focus on “ tipping point neighborhoods.” Type of NeighborhoodAppropriate Strategy Healthy NeighborhoodsSpot demolition Tipping Point Neighborhoods Targeted demolition Revitalization Neighborhoods Demolition for infill development Redevelopment AreaLarge scale demolition for (a) redevelopment or (b) green and maintain
TIPPING POINT NEIGHBORHOODS In many cases, a community’s demolition priorities should not be in heavily abandoned and disinvested areas, but in areas where removal of buildings is likely to help stabilize neighborhood conditions and property values and create potential reuse opportunities. Tipping point neighborhoods are often the most responsive to targeted and coordinated resources. Targeted investment may have a larger impact on a community with respect to resident confidence and future tax revenues than wholesale demolition.
NEIGHBORHOOD TYPES There is no standardized set of metrics or measures that distinguish different neighborhood types. While each city is unique, the continuum of neighborhood conditions can typically be found in most cities.
INDICATORS OF NEIGHBORHOOD CONDITIONS & TYPES Analyze the location and density of: Foreclosure activity Owner-occupied buildings Vacant properties Property values (such as clusters of high or low property values) Historic districts and properties Crime rates Building code complaints
INDICATORS OF NEIGHBORHOOD CONDITIONS & TYPES Analyze the location and density of neighborhood assets, such as: Recent or proposed public or private investments Employment centers (e.g. local companies) Major institutions (e.g. local universities or hospitals) Community amenities (e.g. public parks and spaces)
IDENTIFICATION OF TARGET AREAS Neighborhoods that have the following features or ongoing activities are likely to benefit the most from strategic demolition: A strong social fabric, reflected in strong neighborhood or civic associations or neighborhood-level institutions; Active CDC-led stabilization or revitalization activities, preferably but not necessarily grounded in a neighborhood or target area plan; Features that suggest greater market potential, such as distinctive housing stock or location in close proximity to a strong anchor institution; and A significant planned public investment in an area, such as a new school or public transportation route.
IDENTIFICATION OF TARGET AREAS The applicant should seek information and input from representatives of community development corporations and other entities engaged in neighborhood revitalization, as well as representatives of neighborhood associations in areas potentially targeted for demolition, to help both identify priorities and strategies, and to evaluate specific buildings.
IDENTIFICATION OF TARGET AREAS What are the set of priorities identified by the county and participating communities? Does demolition fit into the local government’s comprehensive plan of redevelopment for the overall community for improving property values, and increasing private investment and redevelopment?
DEMOLITION IN TARGET AREAS Once the key target area—whether a block face, a larger area of a few city blocks, or a corridor—has been identified, all of the buildings that cannot realistically be reused in the area should be demolished. For example, if there are three derelict abandoned buildings on a block face and two are removed, the effect on resident confidence and property values is limited; the remaining blighted property will continue to do almost as much harm as the three that previously stood there.
BEST PRACTICE: YOUNGSTOWN Public, private, and non-profit investments are targeted to Crandall Park North, Lincoln Park, and Idora because these neighborhoods have: Existing community networks and block groups among neighbors that could be strengthened relatively easily Majority owner-occupied homes, despite lower rates of occupancy Access to community amenities like Mill Creek Park (one of the largest metro parks in the nation) and Stambaugh Golf Course Architecturally unique and attractive residences
EXAMPLE TARGET AREAS Crandall Park North, Lincoln Park, and Idora Neighborhood in Youngstown are target areas for strategic demolition because they are tipping point neighborhoods.
BEST PRACTICE: MICHIGAN DEMOLITION STRATEGY The State of Michigan’s demolition strategy will focus on demolition of blighted or abandoned property that: Assist in the stabilization of neighborhoods with high rates of foreclosure prevention services and/or homeownership, or other tipping point indicators. Present a visual impediment along key corridors. Is in direct support of proposed investment of public or private funds including properties that will be redeveloped for residential or commercial use. Is directly adjacent to or across from recent public or private investment, proposed investment, or other assets designated as critical investments or institutions by state or local officials. Is critical for investment in or improvement of infrastructure, public parks or other locally or state endorsed projects.
HOW TO CHOOSE BUILDINGS FOR DEMOLITION BEST PRACTICES FOR STRATEGIC DEMOLITION
HOW TO CHOOSE BUILDINGS FOR DEMOLITION The selection of buildings for demolition should be based upon the: Set of priorities identified by the county and participating communities Market and neighborhood conditions Feedback from engaged stakeholders Property availability and cost
HOW TO CHOOSE BUILDINGS FOR DEMOLITION Demolition decisions will not be clear-cut. Decisions will involve balancing many different factors. Developing criteria for demolition decisions can assist the process.
DEVELOPING & PRIORITIZING CRITERIA FOR DEMOLITION Applicants should identify and prioritize criteria to guide their demolition activities. Criteria can be ranked or weighted to account for their relative priority. Prioritization should be based on existing community and city priorities.
DEVELOPING & PRIORITIZING CRITERIA FOR DEMOLITION Since each county is unique, the significance—and therefore the weighting—of criteria should be tailored to the local context. If developed to fit the local context, criteria can be used to help make strategic decisions that are more likely to be appropriate for local communities.
POTENTIAL CRITERIA FOR DEMOLITION From “Laying the Groundwork for Change: Demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program, Sept 2012 The criteria in this section of the chart can assist in the identification and selection of buildings for demolition
QUALITY & CHARACTER OF BUILDING Does the building have architectural or historical value, either in itself or as part of a coherent ensemble? Demolish the building if it is physically obsolete. Preserve the building if it is attractive, of high quality, or of architectural or historic value. Properties listed on a federal historic register are not eligible for NIP funding for demolition. Properties located in historic districts will be subject to local historic preservation legislation, which may or may not allow for demolition.
BUILDING CONDITION What is the condition of the building and what is the likely cost to rehabilitate it for productive use? Demolish the building if it is physically obsolete and if the cost to rehab the building significantly outweighs its value. Preserve the building if it is attractive, of high quality, or of architectural or historic value. A building’s value can be determined through: An Auditor’s appraisal Services such as Zillow (which may not be as reliable) Real estate “broker price opinions”
NUISANCE & BLIGHTING EFFECT Does the building have a blighting effect on the surrounding area, or does it constitute a present or potential nuisance—a threat to public health or safety? Demolish the building if its nuisance impact and the harm that it is doing in its present condition (in the absence of immediate reuse potential) outweighs the benefits of saving it for possible future use. Preserve the building if the reuse potential of the building, even if not immediate, outweighs the current harm that it does in its present condition, particularly if enhanced efforts are made to secure or stabilize the property. Political and/or public support for preserving the building may help to determine this.
NUISANCE & BLIGHTING EFFECT Ohio Revised Code provides state definitions of a “blighted parcel” and “nuisance.” A “blighted parcel” is generally a property that is dilapitated, unsanitary, unsafe, vermin infested, or that poses a direct threat to public health or safety. For more details, see A “nuisance“ is generally an activity on or condition of a property that is harmful or annoying to others. For more details, see
DOES THE BUILDING POSE A DANGER TO PUBLIC HEALTH OR SAFETY? Does the building fit “blighted parcel” criteria? Does the building pose an environmental or public safety concern? If the answer is “yes” to either of these questions, demolition of the property may be desirable.
CONTRIBUTION TO TEXTURE Does the presence of the building contribute meaningfully to the existing neighborhood texture, and would it be compromised by the building’s removal? Demolish the building if it is located in an area where the neighborhood fabric has largely been lost through incompatible land uses and demolitions. Preserve the building if it is located in an area where the neighborhood fabric is still strong, and the building’s presence contributes to that fabric.
REUSE POTENTIAL What potential redevelopment or revitalization opportunities, if any, will the demolition of the building create? Demolish the building if the demolition will facilitate a comprehensive rebuilding or revitalization strategy in the area. Preserve the building if demolition will result in an unused vacant lot rather than an opportunity for redevelopment or revitalization.
EXAMPLE OF BUILDING SELECTION Building is a blight to the surrounding community. Demolition of the building is coordinated with local revitalization efforts and community plans.
BEST PRACTICE: YOUNGSTOWN PROPERTY RANKING FOR DEMOLITION Demolition criteria to rank properties for demolition desirability: Property condition Proximity to vacant and occupied homes Active neighborhood group or block-watch Focus neighborhood of an organization
BEST PRACTICE: YOUNGSTOWN PROPERTY RANKING FOR DEMOLITION A Rating Excellent, no visible signs of deterioration Well maintained and cared for New construction or renovation Unique, historic detailing B Rating Needs basic improvements Needs minor painting Needs removal of weeds or landscaping Needs to be cleaned C Rating Some cracking of brick and wood Major painting required Crumbling concrete Cracked or damaged D Rating Major cracking of brick, wood rotting Broken or missing windows Missing brick and siding Open holes in roof F Rating House is open and a shell Ransacked and full of trash In danger of collapse Immediate safety hazard to neighborhood
USE OF CRITERIA TO SUPPORT DEMOLITION DECISIONS Criteria will not only legitimize demolition decisions, but also will maximize the value of demolition and provide the greatest impact on communities. Quantifying metrics for criteria can help with demolition decisions. Applicants can use metrics for criteria to describe how demolition activities would impact and aid target areas and their surrounding communities. Applicants can use metrics to describe how demolition activities further current revitalization activities and goals already outlined by the community.
DUE DILIGENCE Inspections Some level of pre-acquisition due diligence is necessary, even if the intended disposition is demolition. Prior to acquisition, there is no shortcut to a physical on-site property inspection. Staff or hired inspection vendors should look at the property from various perspectives. Is the home vacant? Are there squatters? Does the home have a realty "For Sale" sign? Consider other indicators that are noted throughout this presentation In the case of tax foreclosed vacant and abandoned property, there is typically no opportunity to observe the interior of a home unless the home is open and unsecured. Exterior inspections should still occur with pending tax foreclosures.
DUE DILIGENCE Inspections Properties acquired from third parties (Fannie Mae, HUD, housing court, REOs), permit pre-acquisition access by county land banks onto properties to determine interior and exterior physical conditions. A standardized property inspection form should be developed by the county land bank and filled out. The form should identify key exterior conditions, occupancy, and primary interior conditions (mechanical, electrical, plumbing, roof, foundation, basement, etc.). This allows land bank staff to track the general trajectory of the property (rehab, hold, demolition) once it the information is entered into the land bank database.
DUE DILIGENCE Being strategic requires available and credible data and research. Depending on the county, common databases include GIS, Auditor's data, Treasurer's data, Clerk of Court's dockets, Sheriff's data, Recorder's data and private sector real property databases. Useful information for analyzing a particular acquisition, on a spatial basis, include: Surrounding tax delinquency Surrounding private foreclosures status Surrounding pending tax foreclosures Surrounding code violations and condemnation notices Surrounding active building permits U.S. postal records showing vacancy Surrounding land bank or municipal lots Other planning districts
PROPERTY ACQUISITION BEST PRACTICES FOR STRATEGIC DEMOLITION
NIP PROPERTY ACQUISITION GUIDELINES Property eligibility Only vacant and blighted 1-4 unit residential properties that qualify for lawful demolition under state or federal law qualify for NIP funding. Properties must be located in a target area that is part of a comprehensive strategy to stabilize home values and prevent foreclosure.
NIP PROPERTY ACQUISITION GUIDELINES Property cost guidelines The maximum amount of assistance will be $25,000 per property, which may only be used for payoff of an existing loan, approved demolition, remediation and greening of the site, or maintenance and administration for up to three years or until final disbursement, whichever is later. The applicant must acquire or already own the property being demolished with a loan of non-NIP funds.
ACQUISITION & DISPOSITION POLICIES To ensure that the acquisition and demolition of a property results in improvement to the surrounding area, land banks should develop and adopt policies regarding acquiring, holding, maintaining and disposing of properties. These policies must be submitted with the application for funding. Applicants should inform OHFA of any changes or updates to these policies. OHFA will require certification that the acquisition is consistent with the applicant’s policy.
REUSES OF LAND BEST PRACTICES FOR STRATEGIC DEMOLITION
REUSES OF LAND Demolition will lead to vacant land. Applicants will want to prioritize demolition of properties that have specific re-use potential. Some parcels may remain vacant. Land banks must establish protocol for maintaining vacant land under the NIP.
WHY IS A LAND REUSE STRATEGY IMPORTANT? Proximity to a neglected vacant lot subtracts 20 percent from the base value from a nearby home. A home near a stabilized lot—one that has been improved through cleaning and greening— increases the home’s base value by approximately 15 percent. (From “Public Investment Strategies: How They Matter for Neighborhoods in Philadelphia” by Susan M. Wachter and Kevin C. Gillen of The Wharton School, University of Pennsylvania)
DEMOLITION & GREENING The goal of the NIP is to stabilize property values by demolishing and greening vacant and abandoned properties in targeted areas in an effort to prevent future foreclosures for existing homeowners. NIP will provide funds for greening and maintaining properties through 2017 or until disposition for an eligible use. Partners will be reimbursed up to $1,500 per property for the cost of greening a site upon submission of an invoice with appropriate documentation.
CLEANING & GREENING Partners should consider several factors in determining the appropriate method of greening a site after demolition, including: Size Location Condition of the soil Availability of water and sunlight Slope
CLEANING & GREENING Eligible costs for greening include: Planting grass, trees or flowers Installing fencing, benches or beds When planting cannot be conducted immediately following demolition, the land bank can submit a separate invoice at a later date, but not more than nine months following demolition.
ELIGIBLE REUSES Eligible land uses include: Transfer to an adjacent homeowner for a side lot program Transfer of the property to local government Transfer of the property to a private entity
MATCHING THE SITE & REUSE A single residential lot may be suited to cleaning and planting with transfer to an adjacent property owner (side lot program) Adjacent lots along an urban corridor may be conducive to public use as a greenway or recreation (transfer to local government) Vacant blocks may be appropriate for temporary greening and holding for future redevelopment (transfer to private entity)
EXAMPLE OF LAND REUSE Removed house to create green side lot on Brentwood Street in Youngstown, Ohio. Photos courtesy of Youngstown Neighborhood Development Corporation
EXAMPLE OF LAND REUSE Removed abandoned six- plex and replaced with an urban agriculture site in Youngstown. Photos courtesy of Youngstown Neighborhood Development Corporation
LAND REUSE Demolition can prepare a lot for reuse in the future
PROPERTY MAINTENANCE While the long term goal of acquisition and demolition of vacant properties may be redevelopment, the market may not be ready in the short term. Land banks must have a strategy for maintaining properties in a manner that enhances the neighborhood. NIP will provide funds to support ongoing care of sites, including mowing, trimming and removal of trash.
PROPERTY MAINTENANCE NIP will reimburse up to $400 for current and future maintenance of the site, upon submission of an invoice with appropriate documentation. Based on an average expense of $200 per property, the actual cost of maintenance may be less for properties that are quickly transferred to another owner for eligible use, but may be greater for properties that are held for more than two years. Land banks will be permitted to aggregate the reimbursements for maintenance into one account that can be allocated over all of the NIP properties and used until 2017.
FURTHER RESOURCES BEST PRACTICES FOR STRATEGIC DEMOLITION
FURTHER RESOURCES Land Bank Playbook by Western Reserve Land Conservancy’s Thriving Communities Institute Land Bank Playbook NSP Land Banking Toolkit from OneCPD Resource Exchange NSP Land Banking Toolkit “Laying the Groundwork for Change: Demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program, Sept 2012Laying the Groundwork for Change: Demolition, urban strategy, and policy reform
FURTHER RESOURCES “Vacant to Vibrant: A guide for revitalizing vacant lots in your neighborhood” produced by Carnegie Mellon University Heinz School of Public Policy and Management, Fall 2006Vacant to Vibrant: A guide for revitalizing vacant lots in your neighborhood “Policy Recommendations: Greening Vacant Lots for Pittsburgh’s Sustainable Neighborhood Revitalization” produced by Carnegie Mellon University Heinz School of Public Policy and Management, Fall 2006Policy Recommendations: Greening Vacant Lots for Pittsburgh’s Sustainable Neighborhood Revitalization “Vacant Property: Strategies for Redevelopment in the Contemporary City” by Luke Wilkinson, Georgia Institute of Technology, MCRP 2011Vacant Property: Strategies for Redevelopment in the Contemporary City “Green Investment Strategies: How They Matter for Urban Neighborhoods” by Wachter, Gillen and Brown of the Wharton School of Business at University of Pennsylvania, 2007Green Investment Strategies: How They Matter for Urban Neighborhoods
GREATER OHIO POLICY CENTER Greater Ohio Policy Center is available to advise applicants through: Phone In person, as needed For our assistance, please contact: Marianne Eppig Manager of Research and Communications
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