Presentation on theme: "A New Future for Our Old Places Liz Hersh, Executive Director, Housing Alliance of PA."— Presentation transcript:
A New Future for Our Old Places Liz Hersh, Executive Director, Housing Alliance of PA
1. National and Historic Context 2. What Land Banks do - and don’t do 3. The Money Question 4. Where they fit in
To change the market dynamics of blight Land Banks were started to address properties where tax liens exceeded property value Now being used in Michigan, New York, Georgia, Ohio, St. Louis, Louisville, Kansas The latest and best thinking about how to address blighted, abandoned, tax foreclosed properties and get them back onto market
To address the high cost of blight: Cuyahoga County: 2.1% to 9.4% loss of value of properties near vacant &/or tax delinquent &/or foreclosed property Philadelphia: 6.5% average property value reduction citywide with some neighborhoods close to 20% reductions Neighborhood blocks with higher concentrations of unmanaged vacant lots had 18% lower house prices
To Harness the Positive Economics of Blight Remediation Flint: $3.5M of demolition produced $112M in improved surrounding property values Philly: Cleaning and greening of vacant lots increase adjacent property values by 30%. Imagine what it could mean here…
Locally created and controlled single purpose entity to amass, inventory, manage and market vacant, blighted, abandoned and foreclosed properties. Designed to make it faster, easier and cheaper for interested and responsible new owner to acquire these properties with clear, insurable title, and get them back into productive re-use.
A land bank is a governmental entity that focuses on the conversion of vacant, abandoned, tax-delinquent and foreclosed properties into productive use. In PA, it is a public authority created to efficiently acquire, hold, manage, develop and return vacant and abandoned properties to productive use.
Land banks are a means to an end: Demolition of problem properties New affordable or market rates homes Community gardens or urban farms Side yards New development What’s your vision?
Communities of 10,000 people or more Created by ordinance Board with odd number people – community representation is important Can be staffed by city/redevelopment staff Compliance with local codes, maintain Acquires, inventories, manages and “disposes” of property for reuse Actively markets properties
Can acquire property in a variety of ways: Donation Purchase Tax Sale NOT Eminent Domain Gifts From tax claim bureau From municipality
Special Powers Able to clear title through expedited quiet title action Able to recoup 50% of new tax revenue in first five years of property reuse Able to extinguish liens Able to “trump bid” at judicial or free and clear sale
Expand upon the powers of the Redevelopment Authorities One leg of the three-legged stool: Code enforcement, land recycling, investment Trump bid at tax sale with strings attached (in a good way) Organizing effort across silos
Build and expand upon Redevelopment Authority powers Coordination of local effort Stewardship to manage the inventory Earlier intervention in tax foreclosure system Can hold properties without a redevelopment plan and tax exempt Gain site control, create new markets Opportunity for self-financing
Financing and Funding: Grants and loans Bond authority Proceeds from sale 5 year, 50% recapture Gaming, Impact Fee Dollars Income from investments Other?