Vacant Property Working Group (VPWG) The City of Pittsburgh Property Reserve: A Guide for Community Development Corporations Pittsburgh Community Reinvestment Group Centre Avenue, Suite 200 Pittsburgh, PA (412)

Second Class City Treasurer’s Sale Pennsylvania Second Class City Treasurer’s Sale and Collection Act, 1984 Tax collection, not foreclosure mechanism Treasurer’s deed / Clear title

Property Research/Due Diligence Property Information Location Street address Ward, Lot/block number Owner of record Vacancy status Tax delinquency At least 2 yrs delinquent Liens or foreclosure activity Data Sources County Real Estate –Property information –County tax delinquency City of Pittsburgh Finance –City tax delinquency County Prothonotary –Foreclosure activity –Other judgments and claims PCRG –CARC account data

Methods of Acquisition City of Pittsburgh Sideyard Sales Program Bank / Real Estate Owned (REO) properties City of Pittsburgh Property Reserve –Non-profit community development organizations –300 property maximum (208 currently)

I. Property Information Request Electronic request to PCRG Address Ward, Lot/Block Owner Vacancy status Lot/Structure Information retrieved from City Finance Confirm tax delinquency (length, amount) Bankruptcy/payment plans CARC liens Scheduled for Treasurer’s or Sherriff's Sale Eligibility for Treasurer’s Sale confirmed

II. Application and Selection Project Feasibility Application –Strategic (not speculative) development plan –Development and financing plan –Due diligence Partners –Urban Redevelopment Authority –City Finance, Real Estate Department –Pittsburgh Community Reinvestment Group –Allegheny County Dept. of Economic Development

Project Feasibility Application CITY OF PITTSBURGH DEPARTMENT OF FINANCE PROJECT FEASIBILTY APPLICATION Date of Buyback Request:Date of Sale: Property Address:Lot & Block: Organization Information 1.Organization Name 2.Contact Name Please provide your contact information (Phone, Fax, ) PhoneFax: 3. Is your organization a 501 (C) (3)? If so, please provide the federal and state ID 4. Does your organization have a formal neighborhood development plan? Please provide an outline of this plan. Also, indicate whether the plan has been presented to City Planning. 5.Please indicate the number of residential and commercial development projects your organization has managed over the past five years. 6.Has construction been completed on these properties? 7.Will the group be utilizing technical assistance? If so, with whom? 8. Please provide all proposed sources of funding for this project including URA funding. 9.Can the group provide an audit report supporting the organization’s financial standing? 10.Will this project be a partnership with another entity or is it a single CDC development?

Property Information 1.Please supply the property address, lot & block number, and the ward where it is located. (If more than one, please provide on an additional sheet) Address Lot & BlockWard 2.Are there any liens against this property? 3.What is the dollar amount of GLS and CARC liens against the property? 4.If the property is a commercial property/structure (apartment, bar or business) has the CDC done a preliminary title report? 5.Has the CDC checked with the Prothonotary to see if there has been foreclosure activity on the property? 6.What is the plan for the property to be developed? (Will it be commercial or residential and how will this fit into your overall community strategy?) 7.What is the estimated cost of the project? 8.Can you provide a timetable for your development plan? 9. What will be the estimated real estate tax revenue from the property? 10.Please describe the property (i.e. number of units, condition, lot, structure, occupants and state of adjacent properties) 11. Please provide a photo of the property in question, as well as a map of its location. Project Feasibility Application (cont’d)

CITY OF PITTSBURGH DEPARTMENT OF FINANCE CDC REQUEST TO INCLUDE TAX DELINQUENT PROPERTY IN A TREASURER’S SALE WE HEREBY REQUEST THAT THE CITY OF PITTSBURGH INCLUDE THE FOLLOWING TAX DELINQUENT PROPERTY IN A TREASURER’S SALE: (please indicate the sale) ____March ____June ____September ____December Address: Lot & Block Ward Occupied Vacant Lot

III. Treasurer’s Sale & Redemption Period Properties identified for sale –URA approval –No redemption or payment plan Treasurer’s Sale –Public bids 90 day Redemption Period –Opportunity for CDC to request revenue properties

IV. Deposit and Promissory Vacant Lots $600 plus cost ($200 Deposit +$400 Promissory) Up to 5 years in Reserve Structures $1000 plus cost ($200 Deposit + $800 Promissory) Up to 2 years in Reserve Additional costs: Title search and clearing costs Maintenance and inspection

V. Clearing Title and Settlement Proposal to Purchase Title clearing procedures Petition to quiet title Lienholder answer (CARC) Satisfaction of liens with buyback funds Settlement

Lien Buybacks As of 1/13/2006CitySchoolPWSA Balance After 2002 Buybacks$376,712$720,198 $ needed for CDC buybacks$205,522$132,062 Balance remaining for 2006$171,190$588,136 Buyback process reinstated 2002 Buybacks complete CDC priority properties, CARC answers to be removed

Default Provisions  CDC must remove properties from reserve in designated time  Request for extension (properties with title)  30 day default notification from City  1 year restriction on utilizing Reserve

Other Acquisition Issues Inclusion of City owned property –Three Taxing Body guidelines Inclusion of occupied property –Relocation costs –VPWG policy agenda item Property reserve and for-profit developers –CDC must split profits with City –‘Flipping’ properties –Developer and financing commitments

Question / Answer Topics for further training and education?