Structure Stabilization Program Additional Tools In The Tool Box 1

Program Development City Councilman Brown Brian Maxwell, Interim City Manager Brandon Cook, Chief of Staff Dottie Polumbo, City Attorney Rick Vasquez, Planning Director Catherine Gorman, HPO/Asst. Director Sterling Patrick, Housing & Community Development Jeff Sjostrom, GEDP John Listowski, Galveston Housing Finance Corp./City of Galveston Property Finance Authority Galveston Historical Foundation 2

Tax Foreclosed Properties Sheriff sale is primary property disposition procedure Minimum Bid Payment of sheriff sales cost Proceeds from sale to impacted taxing entities. Two year redemption period for homestead 180 day redemption period for non-homestead Sheriff sale date starts clock for redemption period. 3

Tax Foreclosed Properties – No Bidders at Sheriff Sale Properties struck off to taxing entities (County, City, College, ISD, Nav. Dist.) as trustees. City of Galveston managing trustee Properties within City, Code Enforcement maintains including: mowing, boarding and demolishing, cost is secured with lien on property. Galveston Housing Finance Corp. (City appointed board of directors) enjoys 60 day option to purchase. Lineberger, Goggan, Blair & Sampson LLP, tax collection consultant coordinates additional Sheriff sales, advertising cost for additional Sheriff sales paid by City. (cont.) 4

Tax Foreclosed Properties – No Bidders at Sheriff Sale Lineberger, Goggan, Blair & Sampson LLP, tax collection consultant must conduct one sealed bid sale or public advertised sale prior to accepting bids from adjoining property owners. 5

What options exist to manage foreclosed properties with derelict structures? Current Program -Mow lots -Board widows and doors -Partial Demolition -Complete Demolition Current Complaints -Neighbors complaints -City Council concern with program responsiveness -Negative impact on property values -Perception of community decline -City has limited finances to address issue. 6

Non-Foreclosed Vacant Derelict Structures Not all structures are included on foreclosure list. Abandoned, not yet foreclosed Not occupied, taxes current. Dangerous, taxes current. Weedy lots Current list includes 7

Historic Structure Stabilization Program Opportunities Historic preservation is a local Hotel Occupancy Tax (HOT) eligible activity Historic preservation in neighborhoods attracts middle income families Historic preservation is economic development Leverage funding as federal match Leverage funding with foundation grants Enhanced historic preservation drives growth in tourism 8

Chapter 351 of the Tax Code Historical Restoration and Preservation Activities that Directly Promote Tourism and the Hotel and Convention Industry - historical restoration and preservation projects Can San Jac, East End, Downtown and Kepner Park be considered a preservation project? Need to coordinate with Texas Hotel Lodging Association to verify program eligibility. May require legislative action to clarify existing state law. 9

Historic Structure Stabilization Program Galveston Historic Foundation Fills gaps not addressed by GHF’s historic revitalization program design GHF strategy is to make block level strategic investments and recapture through market increases in value GHF program does not address scattered sights unless a landmark or architecturally significant Code Enforcement Smart demolition decisions Saves structures which can contribute to Galveston’s architectural and historical context Fills gaps when code enforcement program is unable to achieve desired level of maintenance 10

Historic Structure Stabilization Program Problem Derelict Structure Privately Held Code Enforcement initiatives exhausted with limited success. Practically demolition by neglect.  Purchase property for fair market value, address through program options. 11

Historic Structure Stabilization Program Problem Derelict Structure Privately Held Senior Citizen Fixed Income  Code Enforcement remedies exhausted  Senior Citizen Owner occupied rehabilitation with income and asset limits  Project management  Terms based on ability to repay  Program repayment upon property transfer or transfer of structure to program, program funds recapture provision in loan documents. 12

Historic Structure Stabilization Program Problem Owner desired demolition of a historically significant structure. Solution Transfer ownership to City Relocation of structure to city property for neighborhood infill strategy Foundation Repair Roof Repair Paint Property Management Property Disposition 13

LEVERAGE HOT FUNDS TO SEEK FOUNDATION GRANTS Use HOT stabilization program funds to apply for unrestricted foundation historic preservation and community revitalization grant funds.  Structure foundation grants  Roof grants  Paint grants  Porch grants  Fence grants  Sidewalk & curb repairs  Architectural feature grants 14

Potential HOT, Foundation, CDBG, IDC Collaborative Structure Programs 15 Revolving Loan Program Sweat Equity Programs Employee Homeownership – GISD, UTMB, TAMU, COG, etc. Historic housing for veterans – leverage with other veteran programs

1718 Avenue M ½ Lost Bayou Historic District 16

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1511 Church East End Historic District 18

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1614 Avenue M Lost Bayou Historic District 20

1614 Avenue M Lost Bayou Historic District 21

Site of Demolished Structure 22

Any Questions? 23