symposium: tools for managing vacant land in philadelphia october 6, 2011 presented by christopher...
TRANSCRIPT
SYMPOSIUM: TOOLS FOR MANAGING VACANT LAND IN
PHILADELPHIAO C T O B E R 6 , 2 0 1 1
P R E S E N T E D B YC H R I S T O P H E R N O R M A N – E X E C U T I V E D I R E C T O R
How Municipal Land Banks Can Help Revitalize
Communities
What is a Land Bank
Tool for converting vacant, abandoned, or distressed property into productive use.
Core competency is acquisition and disposition of troubled, surplus, or vacant property.
Does NOT have eminent domain or taxing authority.
Steps in where market does not or cannot work due to administrative/legal barriers.
Governance/Structure Overview
Established in October 1991 as non-profit, 501(c)(3) tax-exempt corporation pursuant to act of General Assembly.
Interlocal Cooperation Agreement executed in January 1994 between City of Atlanta and Fulton County. Atlanta is located within boundaries of Fulton County. In light of mutual benefit, Interlocal Cooperation Agreement
established to outline governance, powers, purpose and available resources.
Self-contained decision making authority via Board of Directors appointed by Mayor of Atlanta/City Council and Fulton County Chairman/Board of Commissioners
Governance/Structure Overview
Key Elements of Interlocal Agreement Powers of the Authority Formation of the Authority Board of Directors Duties and Responsibilities of the Board Provisions for Staffing and Retention of Outside Services Funding and Expenditures Acquisition and Conveyance of Property by Authority Waiver of City’s Special Assessments Development of Properties Conveyed by the Authority Cooperation and Interaction with Other Fulton
County/Local Municipality Land Bank Authorities
Governance/Structure Overview
Mission Return non-revenue and non-tax producing property
to productive status in order to promote housing, new industry and jobs.
Acquire title to tax delinquent property and manage, maintain, protect, rent, lease, repair, insure, alter, sell, trade, exchange or otherwise dispose.
Extinguish past due tax liens from property foreclosed upon by Fulton County and the City of Atlanta.
Programmatic Initiatives
Tax Abatement Land Banking Depository Program Community Land Trust Sheriff/Marshall Deed Conveyance Public/Private Development PartnershipsGreenspace AssemblageNSP/Community Coordinator PlatformCommunity Gardening (Tentative)
Tax Abatement
Targeted tax abatement to assist development of affordable and mixed income housing projects Abatement includes Fulton County, City of Atlanta,
Atlanta Public Schools, and Fulton County Schools taxesRemoves delinquent tax “overhang” that limits
incentive of developers to focus on certain properties and areas
Distressed areas can yield properties where tax delinquency exceeds market value of property
Tax abatement considered soft equity investment in projects
Land Banking Depository Program
Board approved Land Banking Program Policy in December 2007
Launched Land Banking Program in July 2009
Provides “banking” of eligible residential and commercial properties for three years for non-profit entities and up to five years for governmental entities
Land Banking Depository Program
Goals Advance acquisition of potential development sites in
anticipation of rapidly rising land prices Facilitate pre-development planning, financing and
structuring Minimize violations of housing and building codes and
public nuisances on properties to be developed for affordable housing
Hold parcels for future strategic governmental purposes such as affordable housing and open spaces and greenways
Land Banking Depository Program
Limited to non-profit or governmental entities. For-profits may participate via joint venture as minority partner.
Entities must complete application and upon staff recommendation, Board of Directors approves Land Banking relationship
Benefits Allows for aggregation of properties and site control for
large areas Eliminates tax burden during development phase Provides time to fine tune development and financing plans Reduced costs of property management and insurance due
to economies of scale
Land Banking Depository Program
What constitutes banking? Master Land Banking Agreement executed that details
responsibilities and mechanics of arrangement Title transferred to LBA Insurance provided by LBA Property maintenance provided by LBA Holding costs for insurance, property maintenance and
solid waste fees absorbed by granting entity. Payment is made to LBA on real time basis and not accrued to end of banking period
Property is tax-exempt during banking period
Community Land Trusts
LBA maintains standing Board seat on Atlanta Land Trust Collaborative
LBA serves as property sourcing entity Discounted property purchases Donations
LBA serves as acquisition agent on behalf of CLT
Allows for aggregation of property prior to launch via Land Banking Depository Program Currently holds over 50 properties targeted for new
CLT Utilizes tax abatement for clearing title
Sheriff/Marshall Deed Conveyance
Fulton County and City of Atlanta conveyed approximately 600 Sheriff/Marshall deeds to the LBA
Deeds represent tax interest in properties and not fee simple interest
Conveyed approximately 510 to date to Board approved CDC’s, non-profit developers, for-profit developers and owner occupants for affordable and mixed income housing projects
Priority of conveyance - government, non-profits, private citizens/ owner occupants, for-profits
NSP
With launch of NSP, City of Atlanta and LBA determined need for Community Coordinator function at the LBA
October 2009, hired Community Coordinator/ Program Manager, to coordinate launch of REO Acquisition Program that provides efficient, cost effective mechanism for acquiring and transferring vacant and foreclosed properties
Serve as central point of contact between Lenders, Servicers, Investors and qualified purchasers
Establish a pipeline of properties based on criteria provided by qualified purchasers, City of Atlanta and LBA
NSP
Property sources include National Community Stabilization Trust, REO Lenders, Servicers, and Investors
LBA facilitates complete transaction from property identification to closing
Position funded as part of program costCompleted 100% obligation of $3.192M in
NSP funding for targeted acquisitions and land banking of single family and multi-family properties
NSP
Purchased 9 multi-family properties 25 single family properties
Currently banking/holding 53 single family properties 8 multi-family properties
Preparing RFP for developers to complete rehab and disposition of banked properties
NSP 3 $4.4 from City of Atlanta allocation of $4.9M
To be used primarily for rehabilitation and property acquisition with a minor portion for land banking holding costs
Public/Private Development Partnerships
Opportunity to leverage capabilities of LBA for scaled public/private partnerships
Reached agreement for demonstration project 20 properties in initial phase
Acquire and rehab foreclosed properties Recently facilitated purchase of 34 lot foreclosed
subdivision from FDIC for redevelopment Partner funding acquisition and rehab from own capital LBA to spearhead acquisition via property pipeline Affordability built into business model
Public/Private Development Partnerships
Currently negotiating partnership agreement with following parameters $20 million capital commitment Purchase and rehab up to 500 properties Properties positioned for resale or rental Focus on single family LBA to provide property sourcing
Other Programmatic Initiatives
Greenspace Assemblage Creation of temporary and permanent greenspace Assisting City of Atlanta with initiative to double
greenspace in City Current acquisition projects underway
Other Programmatic Initiatives
Community Gardening (Tentative) Potential temporary repurposing of property
Alternative means of property management Community building Improve accessibility of fresh produce for local
neighborhoods
Contact
Christopher NormanExecutive Director
Main 404-525-9336Direct 404-525-9130
www.fccalandbank.org