Click here to load reader

NJ Future Forum 2012 Problem Properties Sterner

  • View
    455

  • Download
    2

Embed Size (px)

Text of NJ Future Forum 2012 Problem Properties Sterner

  • 1. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESPresentation by Diane Sterner Housing and Community Development Network of NJ

2. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIES Restoring Vacant and Problem Properties is Critical to: Creating vibrant communities Improving communities bottom lineIf a city cant control its land, it cant control its future.--- Former Baltimore Mayor Martin OMalley 3. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIES Challenges in New Jer seys Cities Weak housing market and economy Foreclosure crisis State budget problems/cuts in state aid Market wont come back easily or on its own 4. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESUSING EXISTING PROPERTY INVENTORYBETTER CAN: Create more homes and jobs Increase safety and reduce crime Save money and grow the tax base New Jersey needs better laws, systems and strategies to reclaim problem properties 5. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIES CURRENT TOOLS TO HELP RECLAIMAND PRESERVE PROBLEM PROPERTIES IN NJ: Accelerated tax foreclosure for abandoned properties Abandoned property list Spot blight eminent domain Vacant property registration ordinance Creditor responsibility law for properties in foreclosure 6. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESCURRENT TOOLS (contd): Code enforcement powers Nuisance abatement Redevelopment powersThese tools can combine in a powerful way to returnproperties to productive use.More cities and CDCs are using tools creatively as a resultof our partnership 7. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESBut More Tools Are Needed We are working on: Land Banking Proposal Tax Sale Reform Expedited Foreclosure for Vacant Properties 8. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESLand Banking Proposal (A.1648/S.583): Purpose: to integrate functions needed to acquire problem properties and return to beneficial use. Permits towns to designate redevelopment entities to act as a land bank on their behalf: redevelopment agencies housing authorities county improvement authorities nonprofit entities. 9. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESLand Banking Proposal (A.1648/S.583):Land banks can: Assemble properties for redevelopment Provide CDCs with a supply of houses torehabilitate Sell lots to adjacent homeowners to use as sidelots Redevelop pivotal sites to spur redevelopment 10. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESLand Banking Proposal (A.1648/S.583): Land banks may obtain properties through: Conveyance of city-owned properties Assignment of city-owned liens or purchasing liens at tax sale Carrying out lien foreclosures Eminent domains Gifts or purchase 11. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESLand Banking Proposal (A.1648/S.583):Other Features: Formal agreement between town and land bank Properties may be exempt from taxes if land bank is a non-profit Community advisory board will provide input May serve other municipalities through shared servicesagreement May receive up to 50% of new property taxes for up to 10years on parcels conveyed to private entities 12. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESLAND BANKS HAVE PUT THOUSANDS OF PROPERTIES BACK ON THE TAX ROLLS IN OTHER PLACES: 30+counties in Michigan have land banks 12+ Ohio counties have or are creating land banks under a new state enabling law. NY State is implementing a recently adopted land bank law PA legislature is considering a similar proposal. 13. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESTAX SALE LAW PROPOSAL :The tax foreclosure process is main way fortowns to gain control of problem properties. NJ tax sale law requires auction of tax liens to 3rdparty bidders (unless towns can budget up frontwithin their 2% cap) Result is loss of control over properties and lossof potential revenue. 14. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESTAX SALE PROPOSALPurpose: would allow towns to: Gain control of tax delinquent properties by presumptivebid without having to compete with private investors Acquire liens on tax delinquent properties with no upfrontappropriation. Issue delinquent tax anticipation notes (DTANs) securedby these liens, either individually or jointly with othermunicipalities. Permissive legislation - towns are not required to do this 15. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIES TAX SALE LAW PROPOSALS:Benefits: Towns could acquire liens selectively for targetedstrategies or in bulk Properties not redeemed could be foreclosed and conveyed for redevelopment DTANs could plug budget gap while allowing town to keep fees and interest that now go to investors/ speculatorsIn drafting phase nowExpect to have legislation introduced by the restart of thelegislative session 16. REUSING PROBLEM PROPERTIES TO CREATEOPPORTUNITIES FOR CITIESEXPEDITED MORTGAGE FORECLOSUREFOR VACANT PROPERTIES:Purpose: Accelerate process to preserve homes andprevent neighborhood deteriorationIncluded in new Residential Foreclosure TransformationBill (S.1566)Judge can expedite foreclosure if there is no legalresident or tenant for 45 days or more. 17. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIESHOW YOU CAN GET INVOLVED:Help get local resolutions enacted in support ofLand Banking legislationWrite letters to the editor about the need for toolsto repurpose problem propertiesMeet with your state officials about the need forthese tools Sponsor activities in your community to createmomentum for better solutions 18. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIES COMING UPThe Second Institute forCommunity LeadershipSeptember 11 & 12 Location TBD 19. REUSING PROBLEM PROPERTIES TO CREATE OPPORTUNITIES FOR CITIES THANK YOU!HCDN Contact info:dsterner@hcdnnj.org or sberger@hcdnnj.org www.hcdnnj.orgLike us on Facebook (facebook.com/hcdnnj)Follow us on Twitter (twitter/hcdnnj)

Search related