9/9 FRI 4:15 | Reimaging Communities


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Daniel Kildee

Like many states around the country, the recent economic and housing crisis took a toll on Florida’s communities. The increase in vacant, abandoned, and foreclosed properties has deteriorated neighborhoods, strained local governments, and stunted development.
The first part of this session will explore the challenges facing shrinking cities and how creative planning concepts can foster regionalism and intergovernmental collaboration. The
second part of this session will highlight systemic changes that can positively affect how communities plan, such as reforms to the property tax foreclosure, code enforcement, and mortgage
foreclosure systems.

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9/9 FRI 4:15 | Reimaging Communities

  1. 1. Re-imagining Communities: Discovering New Strategies to Confront Vacant, Abandoned, and Foreclosed PropertiesnAPA Florida 2011Dan Kildee, Co-founder and President Center for Community Progress<br />
  2. 2. Community Progress Launched in 2010<br />Takes to scale the efforts of the nation’s leading organizations and individuals on issues of revitalization and reuse of vacant, abandoned, and underutilized properties.<br />The mission: to create vibrant communities through the reuse of vacant property in America’s cities and towns - to transform the systems that affect how the community development, government, and private development fields repurpose these properties and communities. <br />Technical Assistance & Capacity Building, Policy & Research, Coalition Building, and Communications.<br />
  3. 3. Center for Community Progress<br /><ul><li>Located in Washington, DC; Flint, Michigan; New Orleans, Louisiana.
  4. 4. Currently engaged in over 50 cities across the country, including places in Michigan, Ohio, Pennsylvania, New York, Maryland, New Jersey, Tennessee, Georgia, Minnesota, Louisiana, Indiana, Illinois, Delaware. Initial work in Florida, California, Colorado, Alabama, Arkansas.
  5. 5. Strong emphasis on state policy and the role of public leadership to address vacant and abandoned properties as a key to economic recovery.</li></li></ul><li>Vacant, abandoned, forgotten properties and land <br /><ul><li>Effective vacant property strategies require a systemic approach – simply taking a transactional approach is not sufficient in most places
  6. 6. Focus on the continuum of strategies and tactics – from planning and development – to regulation and enforcement – to acquisition and redevelopment.
  7. 7. Investment, not liquidation. All land has value, if you treat land as real estate</li></li></ul><li>
  8. 8. Title of Slide<br />Bullets<br />
  9. 9.
  10. 10. Chronic vs. acute drivers of abandonment<br />Current “acute” housing crisis:<br /><ul><li>Transactional, product driven – and systemic
  11. 11. Pervasive across markets
  12. 12. Liquidation</li></ul>Chronic abandonment:<br /><ul><li>Economic changes
  13. 13. Population loss
  14. 14. NE/MW
  15. 15. Disinvestment
  16. 16. Obsolete systems</li></li></ul><li>Shrinking Cities – Legacy Cities<br />Of the 51 cities over that lost population from 1990-2000, 48 lost again from 2000-2010<br />Economic recovery will not restore population in most of these cities<br />Design matters. Size doesn’t have to.<br />Planning must move beyond growth<br />
  17. 17. Comprehensive vacant property strategy<br />Requires a change in orientation regarding vacant and abandoned (urban) land<br />Old thinking: <br />Nuisance, surplus, annoyance, police, regulate, enforce, liquidate<br />Emerging thinking: <br />Asset, opportunity, investment, real estate<br />New reality: <br />Vacant land revitalization is essential to economy<br />
  18. 18. Comprehensive vacant property strategy<br />(contd.)<br />Community engagement<br />Ongoing commitment to planning<br />Tax foreclosure reform <br />Land Banking<br />Redevelopment tools<br />All of these strategies are empowered by willingness to take action to address vacant and abandoned property – and to take title<br />
  19. 19. Key elements of regional approach:<br />Tax foreclosure reform (1999)<br />Genesee County Land Bank (2002)<br />Scattered-site Brownfield redevelopment (2003) <br />Genesee County, MI (Flint)<br />
  20. 20. Tax foreclosure reform<br /><ul><li>Elimination of tax lien sales
  21. 21. County-wide collection process
  22. 22. Replace privatized system with DTAN/foreclosure </li></ul>How it works:<br /><ul><li>County issues short-term bonds for back taxes
  23. 23. Tax collector collects principal and penalty
  24. 24. Collections generate public “profit”
  25. 25. On $50 million in delinquency, $3-5 million in surplus
  26. 26. Title and equity to foreclosed property is “public”</li></li></ul><li>Land Bank Authorities <br />A land bank is a public authority or nonprofit created to efficiently acquire, hold, manage and develop foreclosed property, as well as other vacant and abandoned properties. <br />
  27. 27. Genesee Land Bank<br /><ul><li>Takes title to tax-foreclosed properties across county
  28. 28. Evaluate property for reuse
  29. 29. Sell land as REAL ESTATE based upon policies and local plans - $2.5 million in 2010 sales</li></ul>How it works:<br /><ul><li>Foreclosed property diverted from auction to Land Bank
  30. 30. Demolition
  31. 31. Rehabilitation
  32. 32. New construction
  33. 33. Greening
  34. 34. Long-term “banking”
  35. 35. Land assembly
  36. 36. Internal subsidy</li></li></ul><li>Land Banks Can….<br /><ul><li>Sell or convey property through locally developed policies that reflect the communities’ priorities
  37. 37. Sell through negotiated sales
  38. 38. Convey property for other than monetary consideration
  39. 39. Sell, lease, manage property with terms deemed to be in the interest of the land bank
  40. 40. Land bank financing tools for tax foreclosed and other targeted properties
  41. 41. Code enforcement and nuisance abatement</li></li></ul><li>Brownfield TIF <br /><ul><li>Land Bank properties are Brownfield eligible by law
  42. 42. TIF plan is multi-jurisdictional and cross-collateralized
  43. 43. Expanded eligible uses includes acquisition costs</li></ul>How it works:<br /><ul><li>Brownfield bonds issued for thousands of properties
  44. 44. Tax collections are source of repayment
  45. 45. Baseline value is zero
  46. 46. Plan covers multiple jurisdictions
  47. 47. Effect of regional tax redistribution</li></li></ul><li>Internalizing externalities<br />MSU Land Policy Institute Study<br /><ul><li>400 tax-foreclosed single family houses diverted from auction - a loss of maybe $1-2 million
  48. 48. $3.5 expended for demolition of houses and restoration of remaining lots
  49. 49. $112 million in increased value restored to surrounding properties</li></ul>http://www.communityprogress.net/economic-impact-in-flint-resources-3.php<br />
  50. 50. Mixed-use development<br />This is the type so far<br />
  51. 51. Transforming problems into assets<br />
  52. 52.
  53. 53. Homeownership/neighborhood stabilization<br />
  54. 54. Catalytic development<br />
  55. 55.
  56. 56.
  57. 57. Center for Community Progress<br />421 Garland Street • Suite A • Flint, Michigan • 48503<br />P: 877-542-4842 • F: 810-233-7381<br />1001 Connecticut Avenue • Suite 1235 • Washington, D.C. • 20036<br />P: 877-542-4842 • F: 202-223-2120<br />1050 S. Jefferson Davis Parkway • Suite 231 • New Orleans, LA • 70125<br />P: 504-236-8333 • F: 504-821-7074<br />www.communityprogress.net<br />