Baltimore City Vacant Building Receiverships
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Baltimore City Vacant Building Receiverships

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Presented by Julie Day, Esq. and Blair Griffith, Esq., Baltimore Ctiy Code Enforcement, Legal Section, September 24, 2007

Presented by Julie Day, Esq. and Blair Griffith, Esq., Baltimore Ctiy Code Enforcement, Legal Section, September 24, 2007

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Baltimore City Vacant Building Receiverships Baltimore City Vacant Building Receiverships Presentation Transcript

  • Baltimore’s Receivership Program Reclaiming Vacant Properties Pittsburgh Conference September 24, 2007 Presented by: Julie Day, Esq. and Blair Griffith, Esq. Code Enforcement Legal Section For additional information or questions contact: Blair.Griffith@Baltimorecity.gov 410-396-4140 www.baltimorehousing.org
  • GIS technology is utilized in planning and selection
  • Receivership The Baltimore City Receivership process is in the City’s Building, Fire and Related Codes Section 121 Baltimore Codes are available online at: http://cityservices.baltimorecity.gov/charterandcodes/ View slide
  • Baltimore’s Receiver can Rehabilitate Sign contracts, borrow money using receiver’s lien as security Manage the property after rehabilitation for up to 2 years, applying any rent to retire costs of rehabilitation Foreclose on receiver’s lien or accept a deed in lieu of foreclosure View slide
  • or transfer the property private sale if at fair market value and all secured interests agree or public auction - publicly noticed, with bidders pre-screened for ability to rehabilitate in timely manner
  • Property owners can defend by: a. Proving present ability to complete the razing or rehabilitation within a reasonable time, b. agreeing to comply with a specified schedule for razing or rehabilitation, and c. posting bond, in an amount determined by the Court, as security for performance of the required work in compliance with the specified schedule.
  • As nuisance abatement, it is not a governmental taking Receivership has long been recognized as a valid governmental exercise of police power in the abatement of public nuisance. Mugler v. Kansas, 123 U.S. 623 (1887)
  • Can quickly address and remedy nuisance properties . In Baltimore, properties statutorily defined as vacant are deemed nuisances per se. Designation as a nuisance per se recognizes the vacant building as… (Building, Fire and Related Codes of Baltimore City (2003) §115.4)c
  • a fire hazard
  • structurally de-stabilizing surrounding buildings
  • Neighborhoods are supported, community involvement strengthened negatively impacting neighborhood property values and overall quality of life
  • a repository for trash and graffiti
  • Control of property quickly moves to third-party developer Baltimore’s Code was amended earlier this year to include vacant commercial structures
  • Versatility - utilized flexibly – commonly owned properties, targeted blocks or houses Target individual vacant properties in strong neighborhoods (before…)
  • After
  • Clustered in neighborhoods on the brink of renaissance five adjacent fire-damaged brownstones
  • Frees municipal acquisition dollars for other uses become a cleared site for new in-fill construction
  • or commonly owned vacants five in the same neighborhood owned by one person
  • Collects governmental liens and costs Transferred to new owners and recovered over $41,000 in liens, costs and fees Result Total $ to gov't 2313 Callow Ave $138,000.00 $7,955.66 1708 Druid Hill Ave $19,000.00 $2,365.19 1039 W. Lanvale Ave $33,000.00 $2,575.30 1917 McCulloh St $80,000.00 $3,477.00 912 Newington Ave $135,000.00 $17,515.95 924 Newington Ave $113,000.00 $7,761.68 $518,000.00 $41,650.07
  • Facilitates public and private sector cooperation
  • Auctions Today Monday, September 24, 2007 Court Agent & Receiver's Auctions To The Highest Bidders 7 Baltimore City Homes Requiring Renovation 10:00 A.M.: 3701 Centre Place - Two Story Townhome "Highlandtown" - Baltimore, MD 21224 Pre-Qualification is required for the following properties. Application Deadline: Mon., Sept. 17, 2007 10:45 A.M. 502 N. Curley Street - Two Story Townhome "Ellwood Park" - Baltimore, MD 21205 11:15 A.M. 1217 N. Luzerne Avenue - Two Story Townhome "Berea" - Baltimore, MD 21213 11:45 A.M. 404 E. Federal Street - Two Story Townhome "Greenmount West" - Baltimore, MD 21202 12:20 P.M. 611 Montpelier Street - Two Story Victorian Home "Better Waverly" - Baltimore, MD 21218 1:00 P.M. 403 Presstman Street - Two Story Townhome "Druid Heights" - Baltimore, MD 21217 1:15 P.M. 2020 Division Street - Two Story Townhome "Upton" - Baltimore, MD 21217(
  • Timeframe from referral to transfer Day 1 = Referral for receivership Day 45 = Receive Title Work Day 60 = Notice of Filing Day 120 = Petition Served/Court Hearing Receiver Appointment Day 160 = Auction Day 190 = Sale Ratified Day 240 = Transfer to new owner
  • Progress to date 34 completed receiverships Over $1.9 million total sale proceeds $368,000 in city liens and gov’t fees recovered 28 open receiverships 8 auctions = additional $999,000 in proceeds 7 auctions scheduled for September 24, 2007
  • $1,611,063 $304,097 Total Gov't $ $368,130 $29,603 $24,266 $10,162 City Tax/Stamps Municipal Liens State Tax/Stamps State Transfer Tax
  • Unexpected surprises: Owners resolve housing code violations and pull permits to be able to participate in receivership auctions Owners consent to receivership, some with a specified stay of the receiver’s actions Creation of recognized “comparative sale values” utilizing auction prices to help stabilize market
  • More unexpected surprises: Number of dead people holding title Auction sale price less than government liens on property Successful bidder becomes another receivership candidate
  • Top 10 Reasons Baltimore Recommends Receiverships 1. As nuisance abatement it is not a governmental taking 2. Can quickly address and remedy nuisance properties 3. Neighborhoods are supported and community involvement strengthened 4. Control of property quickly moves to third-party developer 5. Versatility - utilized flexibly – commonly owned properties, targeted blocks 6. Frees municipal acquisition dollars for other uses 7. Collects governmental liens and costs through sale proceeds 8. Facilitates public and private sector cooperation 9. Can be utilized collaboratively with municipal acquisition 10. Assists in transferring dead people’s property
  • Sheila Dixon, Mayor