City of Pittsburgh – Department of City Planning Mayor’s Land Recycling Task Force Meeting III Thursday, September 30, p.m. – 4 p.m. Luke Ravenstahl Mayor, City of Pittsburgh

City of Pittsburgh – Department of City Planning Agenda City of Pittsburgh – Department of Neighborhood InitiativesCity of Pittsburgh – Office of the Mayor  Introduction Mayor Luke Ravenstahl  Update on Pennsylvania House Bill 712 Kim Graziani, Office of Mayor Luke Ravenstahl Kendall Pelling, East Liberty Development, Inc.  Financing Irene McLaughlin, J.D., Housing Alliance of Pennsylvania  Next Steps & Upcoming Meetings Kim Graziani, Office of Mayor Luke Ravenstahl

City of Pittsburgh – Department of City Planning City of Pittsburgh – Bureau of Police Introduction City of Pittsburgh – Department of Neighborhood InitiativesCity of Pittsburgh – Office of the Mayor  Goal for Meeting  Progress to Date  Importance of discussing financing

City of Pittsburgh – Department of City Planning City of Pittsburgh – Bureau of Police Pennsylvania House Bill 712 City of Pittsburgh – Department of Neighborhood InitiativesCity of Pittsburgh – Office of the Mayor  Summary  Timeline Introduced  Passed House  Senate Urban Affairs Committee 9/16 Public Hearing As of 9/30, now incorporated into SB 900 as amendment  Next Steps

City of Pittsburgh – Department of City Planning City of Pittsburgh – Bureau of Police Financing City of Pittsburgh – Department of Neighborhood InitiativesCity of Pittsburgh – Office of the Mayor  Increase Revenue  Reduce Costs  Additional Study

City of Pittsburgh – Department of City Planning Financing (cont.) Land Recycling Built upon Real Estate Tax Collection and Foreclosure Processes Tax Billing/Collection…….Tax becomes delinquent…. Tax Sale …..Redemption……Land Recycling……… Eligible Hardships… Late Payers………… ………….Blighted & Abandoned Properties………. City of Pittsburgh – Office of the Mayor

City of Pittsburgh – Department of City Planning Financing-Finding Revenue  Find Revenue to Dedicate to Land Recycling The ADDS to a Tax Bill when it becomes delinquent:  Penalty (one time)  Interest (rate, timing, & how calculated)  Costs of Processing (e.g. lien filing fees, advertising, “charges, expenses and fees”)  Attorney Fees City of Pittsburgh – Office of the Mayor

City of Pittsburgh – Department of City Planning Financing-Finding Revenue (cont) MIOHPA Annualized Rates18%10%9-12% Penalty4%5%10%* Interest Rate+1%c. +1% (monthly accrual)+1.5% Costs$ adds 5%**$ adds *generally, some taxing bodies do not have statutory authority to assess penalty **delinquent tax and assessment collection funds

City of Pittsburgh – Department of City Planning Financing-Reduce Costs  Modernization Trends-Cost/Time Efficiencies  Single Free and Clear Judicial Sale  Pre-sale, due process notice to ALL parties in interest  No post-sale owner redemption  Reduction of Per Property Foreclosure Costs/Time-PA Joint Petitions; MI Bulk Sales City of Pittsburgh – Office of the Mayor

City of Pittsburgh – Department of City Planning Financing-Options for Study  Dedicate particular revenue streams  Delinquent Tax Anticipation Notes (DTANS)  Proceeds from recycled property sales  50% of future tax revenues for 5 years  Reduce liability/increase immunity Separate, single purpose entities (HB712):  General Powers  Disposition policies  Financing Options  Borrowing & Issuance of Bonds (See separate one page handout) City of Pittsburgh – Office of the Mayor

City of Pittsburgh – Department of City Planning Next Steps  Next Land Recycling Task Force Meeting: December 2, :00 a.m. – 12:00 p.m. PittMAPS conference room  Upcoming Schedule of Events/Meetings Related to Land Banking City of Pittsburgh – Office of the Mayor

Thank you. pittsburghpa.gov/landrecycling