City of Pittsburgh – Department of City City of Pittsburgh – Department of City PlanningPlanning

Mayor’s Land Recycling Task Force Meeting III

Thursday, September 30, 2010

2 p.m. – 4 p.m.

Luke RavenstahlMayor, City of Pittsburgh

City of Pittsburgh – Department of City City of Pittsburgh – Department of City PlanningPlanning

Agenda

City of Pittsburgh – Department of Neighborhood InitiativesCity of Pittsburgh – Office of the Mayor

IntroductionMayor Luke Ravenstahl

Update on Pennsylvania House Bill 712Kim Graziani, Office of Mayor Luke RavenstahlKendall 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 City of Pittsburgh – Department of City PlanningPlanning

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 City of Pittsburgh – Department of City PlanningPlanning

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 Committee9/16 Public HearingAs of 9/30, now incorporated

into SB 900 as amendment

Next Steps

City of Pittsburgh – Department of City City of Pittsburgh – Department of City PlanningPlanning

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 City of Pittsburgh – Department of City PlanningPlanning

Financing (cont.)

Land RecyclingBuilt 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 City of Pittsburgh – Department of City PlanningPlanning

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 City of Pittsburgh – Department of City PlanningPlanning

Financing-Finding Revenue (cont)

MI OH PA

Annualized Rates 18% 10% 9-12%

Penalty 4% 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 City of Pittsburgh – Department of City PlanningPlanning

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 City of Pittsburgh – Department of City PlanningPlanning

Financing-Options for StudyDedicate particular

revenue streamsDelinquent 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 PowersDisposition policiesFinancing OptionsBorrowing &

Issuance of Bonds

(See separate one page handout)

City of Pittsburgh – Office of the Mayor

City of Pittsburgh – Department of City City of Pittsburgh – Department of City PlanningPlanning

Next Steps

Next Land Recycling Task Force Meeting:

December 2, 2010 10:00 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