thriving communities institute from vacancy to vitality a program of western reserve land...

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

County Land Bankingin Ohio

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities Institute

• Land Conservancy's urban initiative

• Headed by Jim Rokakis

• County land bank advocacy

• Urban land use issues

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Land Banking in Ohio: History

• Authorized for only Cuyahoga County in 2008

• Cuyahoga County Land Reutilization Corporation established in 2009

• Law amended in 2009 for smaller counties

• Today in Cuyahoga, Lucas, Montgomery, Trumbull

Mahoning, Hamilton & Franklin

• Underway in, Erie, Summit, Stark, Lake & Lorain

• Interest in Butler, Richfield, Ashtabula and Allen

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

43 Eligible Counties

Restricted to counties with

population60,000 or greater

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

What is a County Land Bank?

• Special, community improvement corporation (R.C. 1724)

• Not a county agency

• Quasi-governmental (R.C. 5722)

• Committed to public purpose

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Public Purpose

• To promote economic and housing development of the county or region

• To facilitate the reclamation, rehabilitation and reutilization of vacant, abandoned, tax-foreclosed or other real property

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Public Purpose (continued)

• To efficiently hold and manage that real property pending its reclamation, rehabilitation and reutilization

• To assist governmental entities and other non-profit or for-profit entities in the assembly of that real property and the clearing of title in a coordinated manner

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities InstituteWestern Reserve Land Conservancy

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

County Land Banks: Response to Foreclosure Crisis

• Response to worst

housing crisis in

U.S. History• Acquire vacant and

abandoned property • Deference to cities• Triage• Dispose or hold

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Benefits of Land Banking

• Stops speculation/flipping

• Stabilizes housing base, tax base

• Improves quality of life

• Advances urban planning

1 in every 616 housing units in Ohio received

a foreclosure filing in January 2012.

-RealtyTrac

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Foreclosure, Crime & Demolition Studies Cleveland Fed Study: REO Inventory Levels High through at least

2013

Immergluck Research: Foreclosure Effects on Neighbor's Housing

Foreclosure & Crime

Flint Study: $3.5 Million in Demolition = $109 Million

Preserved Housing Value

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Establishing the County Land BankCOUNTY COMMISSIONERS

(Create R.C. 5722 Land Bank)

COUNTY TREASURER

LRC BOARD OF DIRECTORS IS CREATED

COMMISSIONERS PASS RESOLUTION AUTHORIZING COUNTY TREASURER TO

INCORPORATE LRC VIA R.C. 1724

TREASURER INCORPORATES LRCVIA R.C. 1724

LRC BOARD IMPLEMENTS PROGRAMMING ACTIVITIES

PROGRAMMING ACTIVITIES

LRC BOARD CREATES LAND REUTILIZ ATION PLAN FOR ADOPTION BY COUNTY

COMMISSIONERS

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Structure of Land Bank Board Board has 5, 7 or 9 members:

• Treasurer• Two Commissioners• One member from largest city• One township member• Others (if any) chosen by agreement

of Treasurer and two Commissioners

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Funding the Land Bank

• DTAC: up to 5%• Penalties and interest• DTANS• Grant recipient or co-recipient• Borrow (not on county guarantee)• Property sales

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

DTAC funding(preferred method)

Penalty

First Half Taxes

Penalty

First Half Taxes

Penalty

Second Half Taxes

Penalty

Delinquent

Taxes

Delinquent

Taxes

5% DTAC

UP TO 5%

5% DTAC

Penalty

5% DTAC

10% late payment penaltyAfter each due date

Current 5% DTAC feeSplit between TreasurerAnd Prosecutor for useIn delinquent collections

Additional DTAC forLand Bank (needsBOCC approval

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Land Bank Acquisitions

• Tax Foreclosure• Government Sponsored Entities (GSE)• HUD• Bank Real Estate Owned (REO)• Deed in Lieu• Gift or Donation

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

County Land Bank OperationsBANK REO’s

PROPERTY TRIAGE

RESPONSIBLE FOR MOTHBALL

REHABILITATION

RESALE TO RESPONSIBLE

QUALIFIED BUYER/REHABBER

HOLD FOR STRATEGIC

ASSEMBLY & ECONOMIC

DEVELOPMENT

DEMOLISH

HUD GSE’s TAX FORECLOSEDDEED IN LIEU

PROGRAMS:

• SIDE YARD • INFILL HOUSING • GREEN SPACE • URBAN GARDENS

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Vacant Lots Coming Into the Land Bank

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Side Lots

Repurpose as . . . . .

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Urban Farms or Community Gardens

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Green Space

City Parks

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Parking for Churches, Schools and Local Businesses

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Habitat for Humanity

Homes

Neighborhood Housing Initiatives

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Improving Neighborhoods

One Lot at a Time

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Acquiring Homes

• Tax foreclosures• Government Sponsored Entities

(Fannie Mae, Freddie Mac, etc)• Department of Housing and Urban

Development (HUD)• Bank-Owned Properties (post

foreclosure)

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

The Good

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

The Bad

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

And the Ugly

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Vacant and AbandonedCommercial Properties

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

For some properties the only option is

demolition

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

For others, restoration

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Rehabilitating Properties

• Direct transfer to reputable contractor

• Contract for rehab work, then sell

• Deed in escrow

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Before After

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Fire and SafetyTraining

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Court Ordered Community Service

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Assembling,Clearing

andHolding

for Future

Development

Thriving Communities Institute

From Vacancy to VitalityA Program of Western Reserve Land

Conservancy

Each County has different needs

Each City has different needs

One size does not fit all!