Problem Properties Unit MN APA Conference September 22, 2008 Duluth, Minnesota

Problem Properties Unit Mission To analyze and resolve property issues that have not been responsive to Normal processes of enforcement – including boarded and vacant buildings Focus Areas Program (Vacant, Boarded, Condemned) 2.Problem Addresses (police and housing) 3.Complex & Non-responsive (commercial)

Our Chapter 249 Program ( boarded and vacant properties)

Managing Boarded and Vacant Properties Monitor and Track Boarded, Vacant and Condemned Properties Identify properties for Vacant Building Registration (VBR) Conduct all inspections on VBR properties until re- occupied Process fees associated with VBR status Administer the Ordinance Governing Boarded, Vacant and Nuisance Properties (Chap. 249) Determine appropriate abatement action – demolition or restoration Send Director’s Orders and process appeals Coordinate all 249 demolitions; including specs and sign-offs

Vacant Building Registration Criteria and Process Criteria Condemned Unoccupied/unsecured Unoccupied/secured by means other than normally used Unoccupied with housing code orders past due Unoccupied for 1 year with at least 1 housing order Issue notice/order to owner – requests plan and $6000 annual fee Re-inspect every days to verify status

Samples of Properties “On the List”

A Case for Increasing the VBR Fee Analysis in late 2007 lead to increase in fee. Average cost of boarded/vacant properties closer to $ % plus properties required re-board 80% had some type of environmental abatement (grass, weeds, rubbish) 60% had police calls for service Average special assessment $1385 Direct impact on surrounding property values – drop of $8000

Director’s Orders – a new procedure to manage and abate nuisance properties Chapter 249 amended in October 2006 to allow for administrative determination of “Nuisance” Extensive notice 21 days to appeal the order 30 days to comply with the order No appeal – demolition Created Restoration Agreement Established a legislative appeal process for expedited findings of fact Reduced involvement of public officials Allowed for more properties to be processed

More Samples of Properties“on the list”

Actual Demolitions - Comparison by Years

Buildings Open To Trespass Up 477%

Buildings Requiring Boards Up 583%

“On the List”

Vacant Building Registrations Up 204% VBR properties more than doubled in 2007 Increased complexity due to foreclosures Concentrated in two areas of the City

Location of Boarded and Vacant Buildings Follows Foreclosures

A Snapshot of Properties on the VBR List 2/3 of properties are condemned 1/3 vacant (not boarded or condemned) 10% take up between hours of staff time to manage

Length of Time Properties Remain on the Vacant Building List Approx 930 registered as vacant Majority on the list between 0-2 years 4% have been Vacant 5+ years

City-County Demolition Collaborative Summer 2008 – Partnered with County to Demo an Additional 50 properties Windshield analysis of 370 condemned properties – Yes, No, Maybe Assembled additional data and reviewed analysis  Length of time condemned  Structural problems  General condition  Fire history  Recent Permits  Lot size / zoning  House size and marketability  Preservation Analysis  After-rehab market value Identified 99 properties for Director’s Order to Demolish To date – 35 appealed; 54 out on bid Batch bids in groups of 27 properties per group Goal to have all 54 plus down by December

Continue to re-design the 249 process Tiered approach to condemnation Increase the use of Restoration Agreements Explore the use of Receivership to increase rehab Expand our “Warning System” Explore options for vacant commercial Looking Forward