Jefferson County census tractswith highest vacancy rates, 2010

2010 census 2000 census

65

65

65

64

64

64

264

264

71

Ohio River

INDIANA

Bank St.

Wilson Ave.

Dumesnil St.

Broadway

Chestnut St.

9th St.

Jefferson St.

Hill St.

Algonquin Pkwy.

Broadway

Main St.

2nd

St.

Story Ave.

River Road

Market St.

Market St.

Liberty St. Baxter Ave.

BardstownRoad

28th

St.

22nd

St.

22nd

St.

31

Louisville’s growing problem withabandoned homes and vacant lots

Jefferson County’svacant structures

265

265

841

841

264

264

71

64

64

65

OLDHAM

BULLITT

HARDIN

SPENCER

JEFFERSON

CLARK

FLOYD

HARRISON

SHELBY

N

M

New state law helps fight problemSince 2005, metro government has spent $17.3 million to board up , clean and demolish houses that have become eyesores but recouped only $1.3 million. SB 135, passed by the Kentucky General Assembly last spring and signed by Gov. Steve Beshear, gives metro government’s liens a higher priority, so they are more likely to get paid when a property sells in foreclosure or otherwise changes hands.

Who gets paid first?Taxes

Mortgagecompany

Louisville’scosts to maintainproperty

Any other liensrecorded first(like home-equity loansor second mortgages)

Under the new law, Louisville moves from fourth to second in order of payment

VACANT

Research by Chris Otts and Marcus Green, Graphics by Steve Reed, The Courier-Journal

Timeline of a delinquent property tax billSummer

(July 21, 2011 in Jefferson County)

County clerk offers tax bills for sale to third-party investors. Bills balloon by at least 65

percent with penalties, advertising costs and fees for

county clerk, sheriff and county attorney.

Later1 percent interest per

month is added to already inflated bill.

Third-party investors can add up to $700 in pre-litigation fees

and $100 administra-tive fee.

One year laterThird-party investors or

county attorney can file foreclo-

sure lawsuit. Attorneys fees

can be added to the bill.

11 years laterThird-party

investor loses right to collect on

delinquent bill.

Dec. 31Taxes due to sheriff.

Through April 15 Taxes can be paid to sheriff

with 5 to 10 percent late penalty.

April 15Sheriff turns over delinquent

tax bills to county clerk.

736 S. 24th St.

1827 Bank St.

Owner abandons property. Neighbors call Louisvillemetro government.

City cuts grass, boards up property. Further inspections and maintenance care may follow if property remains uncared for.

If vacant for at least a year and in theold City of Louisville, property can bedesignated an abandoned urban property,quadrupling the Urban Service District portion of property tax. Property can again be designated AUP in following years if not cleaned up.

Life-cycle of a vacant property

Inspectors visit property, issuecitations for tall grass, other violations.

712 Coke St.

Lenders, third-party tax inves-tors or metro government may foreclose on the property. If property is undesirable, it may be placed in the Louisville-Jefferson County Landbank.

Once clear of liens,property can be transferred from land bank to developer.

ore than 8 percent of all homes across Jefferson County were empty in 2010, with vacancy rates above 20 percent afflicting a stretch of urban neighborhoods that included parts of California, Smoketown, Russell and Portland, according to the U.S. Census Bureau. Jefferson County property valuation adminstrator estimates place the number of vacant and abandoned properties at around 7,000 — although no single office keeps a complete count. Early next month, a team headed by Louisville Metro Codes & Regulations director Jim Mims plans to propose a comprehensive strategy for combating vacant properties.

Sources: Metro Louisville Department of Codes &Regulations; U.S. Census Bureau; Courier-Journal research

Source: Division of Inspections, Permits & Licenses