April 4, 2011 Presented by Christopher Norman – Executive Director Banking on Abandoned Properties Brownfields 2011 Conference

Governance/Structure Overview Established in October 1991 as non-profit, 501(c)(3) tax-exempt corporation pursuant to act of General Assembly. Interlocal Cooperation Agreement executed in January 1994 between City of Atlanta and Fulton County. Atlanta is located within boundaries of Fulton County. In light of mutual benefit, Interlocal Cooperation Agreement established to outline governance, powers, purpose and available resources. Self-contained decision making authority via Board of Directors appointed by Mayor of Atlanta/City Council and Fulton County Chairman/Board of Commissioners

Governance/Structure Overview Key Elements of Interlocal Agreement Powers of the Authority Formation of the Authority Board of Directors Duties and Responsibilities of the Board Provisions for Staffing and Retention of Outside Services Funding and Expenditures Acquisition and Conveyance of Property by Authority Waiver of City’s Special Assessments Development of Properties Conveyed by the Authority Cooperation and Interaction with Other Fulton County/Local Municipality Land Bank Authorities

Governance/Structure Overview Mission Return non-revenue and non-tax producing property to productive status in order to promote housing, new industry and jobs. Acquire title to tax delinquent property and manage, maintain, protect, rent, lease, repair, insure, alter, sell, trade, exchange or otherwise dispose. Extinguish past due tax liens from property foreclosed upon by Fulton County and the City of Atlanta.

Values Adopted 7 guiding principles: Transparency Accountability Professionalism Thoroughness Customer Focus Teamwork Creativity

Programmatic Initiatives Sheriff/Marshall Deed Conveyance Tax Abatement NSP/Community Coordinator Platform Land Banking Depository Program Greenspace Assemblage Community Land Trust (New) Community Gardening (Tentative)

Land Banking Depository Program Board approved Land Banking Program Policy in December 2007 Launched Land Banking Program in July 2009 Provides “banking” of eligible residential and commercial properties for three years for non-profit entities and up to five years for governmental entities

Land Banking Depository Program Goals Advance acquisition of potential development sites in anticipation of rapidly rising land prices Facilitate pre-development planning, financing and structuring Minimize violations of housing and building codes and public nuisances on properties to be developed for affordable housing Hold parcels for future strategic governmental purposes such as affordable housing and open spaces and greenways

Land Banking Depository Program Limited to non-profit or governmental entities. For-profits may participate via joint venture as minority partner. Entities must complete application and upon staff recommendation, Board of Directors approves Land Banking relationship Benefits Allows for aggregation of properties and site control for large areas Eliminates tax burden during development phase Provides time to fine tune development and financing plans Reduced costs of property management and insurance due to economies of scale

Land Banking Depository Program What constitutes banking? Master Land Banking Agreement executed that details responsibilities and mechanics of arrangement Title transferred to LBA Insurance provided by LBA Property maintenance provided by LBA Holding costs for insurance, property maintenance and solid waste fees absorbed by granting entity. Payment is made to LBA on real time basis and not accrued to end of banking period Property is tax-exempt during banking period

Financial Support – Operations City of Atlanta CDBG Funds$143,201 Fulton County General fund appropriation$161,700 Fannie Mae Grant$50,000 Enterprise Community Partners, Inc. Grant$25,000 Property Inventory Sales Varies annually$20,000 - $125,000 NSP Annual support of 1 position$80,800

Financial Support - Programmatic ACoRA (Title XX Funds) $590,000 for purchase of 28 unit apartment building for conversion in senior affordable housing NSP 1 $3.192M from City of Atlanta $16M allocation Used for property acquisition, land banking holding costs, rehabilitation NSP 3 $4.4 from City of Atlanta allocation of $4.9M To be used primarily for rehabilitation and property acquisition with a minor portion for land banking holding costs

Property Disposition NSP Property purchase pre-arranged with designated developer. Immediate disposition post closing. Strategic purchases with no pre-identified developer. Currently preparing RFP for award to developer(s) for completion of renovation and sale or lease of NSP financed properties. Sheriff/Marshall Deeds Interested parties submit required application and supporting documents. Staff reviews and makes recommendation to Board. Priority given to creation of affordable housing. Board reviews and makes final decision

Brownfields The LBA has not become involved with brownfields to date Reasons: Concern about liability No Board approved policy Low historical demand Atlanta Beltline may provide opportunity to increase involvement with this type of property Portions of 22 mile Beltline path cut through industrial areas around the Atlanta that are considered brownfield Green initiative to double the amount of park space in Atlanta may provide additional opportunities as well.

Challenges/Advantages Challenges Funding for acquisitions, property management and demolition Structural limitations vis-à-vis tax code and foreclosure process Advantages Patient property holder and development partner Ability to extinguish taxes Centralized partner and point of contact for the development system (banks, non-profits, government agencies, philanthropic entities, etc.)

Contact Christopher Norman Executive Director Main Direct