Vacant Property Working Group (VPWG)

Pittsburgh Community Reinvestment Group1901Centre Avenue, Suite 200

Pittsburgh, PA 15219(412) 391-6732

Staff Contact: Bethany E. Davidson – 412.391.6732 x201 or bdavidson@pcrg.org

Property Acquisition and the City of Pittsburgh Land Reserve

Overview

• Who / What is VPWG?

• Brief History of Land Recycling

• State of Vacancy in Pittsburgh

• Treasurer’s Sale and Land Reserve Overview

• CDCs and Land Recycling

• Question and Answer

VPWG• What: Work on issues of blight and

abandonment in the City of Pittsburgh• When: Formed in 1988• Who: Open to any and all in the city

– Made up of CDCs and CBOs, representatives of elected offices, government agencies

– 2 Neighborhood Co-Chairs• How: Staffed for 12 years through CDBG,

housed at PCRG (Pittsburgh Community Reinvestment Group)– Meet monthly as neutral cross-sector table to discuss

policy, vet ideas, understand current property issues

Issues

• Scalable Land Recycling System• Land Acquisition Processes• Tax Collections• Code Enforcement• Policy [Local, State, Federal]

– SideYard Sales/Garden Waiver Program – CARC and GLS Lien Portfolios– Disruptive Properties and Rental Permitting

• Demolitions and Greening• Access to Data / Parcel Information

Methods of Acquisition

• City of Pittsburgh Sideyard Sales Program

• Bank / Real Estate Owned (REO) properties– PCRG Partnerships with local & national lenders

• Second Class City Treasurer’s Sale– Intent is tax collection, not foreclosure mechanism

• City of Pittsburgh Property Reserve– Non-profit community development organizations – 300 property maximum (234 currently)

Vacancy in the City of Pgh

• 112,918 Total Residential Parcels in the City• 15,487 Vacant Residential Parcels in the City

(13.7%)

• 84,989 Single Family Homes in the City• 4,576 Single Family Homes in the City not

receiving mail delivery due to vacancy (5.4%)

• Vacant lots and properties are concentrated in several neighborhoods

Provided by the Community Information System (CIS)

Land Reserve History

• Reserve established by Council Bill 402 of 1998 Enabled creation of a land reserve, process for

lien buybacks, and provisions for future lien portfolio sales

• City lien portfolio sold in 1996 to Capital Asset Research Corporation (CARC), bought back in 2007

• County Lien portfolio sold at same time – only partially bought back

• 3TB – Three Taxing Bodies agreement

Land Reserve Usage Provisions

• CDC must:– Have a redevelopment plan in place, including proof of (current

or future) ability to finance and complete project– Adhere to designated process and all timelines– Remove properties from reserve in designated time (2 or 5

years)

• Formal Request for Time Extension (properties with clear title)

• 30 day default notification from City

• 1 year restriction on utilizing Reserve if in Default

Properties

Eligible

• 1+ prior Years Tax Delinquent

• Vacant/Abandoned

Ineligible• Payment plan• Sheriff’s

Sale/Foreclosure• Bankruptcy• Paid in Full• Already in Process• Private Bidder• Side Yard Sale

Other Acquisition Issues

• Inclusion of City owned property– Three Taxing Body guidelines

• Inclusion of occupied property– Relocation costs– VPWG policy agenda item

• Property reserve and for-profit developers– CDC must split profits with City– ‘Flipping’ properties– Developer and financing commitments

Land Reserve Usage Provisions

CDC must: Have a redevelopment plan in place, including proof of

(current or future) ability to finance and complete project Adhere to designated process and all timelines Remove properties from reserve in designated time (2 or 5

years)

Formal Request for Time Extension (properties with clear title)

30 day default notification from City

1 year restriction on utilizing Reserve if in Default

Application and Selection

Project Feasibility Application– Strategic (not speculative) development plan– Development and financing plan– Due diligence– Community/political support

Partners– Urban Redevelopment Authority– City Finance, Real Estate Department– Pittsburgh Community Reinvestment Group– Allegheny County Dept. of Economic Development

Treasurer’s Sale & Redemption Period

Properties identified for sale– URA approval– No redemption or payment plan

Treasurer’s Sale– Public bids (no clear title)

90 day Redemption Period– Opportunity for CDC to request revenue

properties

Current System Issues

• Quantity Limit

• Capacity

• Resources

• Maintenance

• Timeline

• Complex

Question / Answer

Thank You