SYMPOSIUM: TOOLS FOR MANAGING VACANT LAND IN PHILADELPHIA OCTOBER 6, 2011 PRESENTED BY CHRISTOPHER NORMAN – EXECUTIVE DIRECTOR How Municipal Land Banks Can Help Revitalize Communities

Overview Governance/Structure Overview Programmatic Initiatives/Disposition Strategies

What is a Land Bank Tool for converting vacant, abandoned, or distressed property into productive use. Core competency is acquisition and disposition of troubled, surplus, or vacant property. Does NOT have eminent domain or taxing authority. Steps in where market does not or cannot work due to administrative/legal barriers.

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.

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

Tax Abatement Targeted tax abatement to assist development of affordable and mixed income housing projects  Abatement includes Fulton County, City of Atlanta, Atlanta Public Schools, and Fulton County Schools taxes Removes delinquent tax “overhang” that limits incentive of developers to focus on certain properties and areas Distressed areas can yield properties where tax delinquency exceeds market value of property Tax abatement considered soft equity investment in projects

Tax Abatement

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

Land Banking Depository Program

Community Land Trusts LBA maintains standing Board seat on Atlanta Land Trust Collaborative LBA serves as property sourcing entity  Discounted property purchases  Donations LBA serves as acquisition agent on behalf of CLT Allows for aggregation of property prior to launch via Land Banking Depository Program  Currently holds over 50 properties targeted for new CLT Utilizes tax abatement for clearing title

Sheriff/Marshall Deed Conveyance Fulton County and City of Atlanta conveyed approximately 600 Sheriff/Marshall deeds to the LBA Deeds represent tax interest in properties and not fee simple interest Conveyed approximately 510 to date to Board approved CDC’s, non-profit developers, for-profit developers and owner occupants for affordable and mixed income housing projects Priority of conveyance - government, non-profits, private citizens/ owner occupants, for-profits

NSP With launch of NSP, City of Atlanta and LBA determined need for Community Coordinator function at the LBA October 2009, hired Community Coordinator/ Program Manager, to coordinate launch of REO Acquisition Program that provides efficient, cost effective mechanism for acquiring and transferring vacant and foreclosed properties Serve as central point of contact between Lenders, Servicers, Investors and qualified purchasers Establish a pipeline of properties based on criteria provided by qualified purchasers, City of Atlanta and LBA

NSP Property sources include National Community Stabilization Trust, REO Lenders, Servicers, and Investors LBA facilitates complete transaction from property identification to closing Position funded as part of program cost Completed 100% obligation of $3.192M in NSP funding for targeted acquisitions and land banking of single family and multi-family properties

NSP Purchased  9 multi-family properties  25 single family properties Currently banking/holding  53 single family properties  8 multi-family properties Preparing RFP for developers to complete rehab and disposition of banked properties 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

Public/Private Development Partnerships Opportunity to leverage capabilities of LBA for scaled public/private partnerships Reached agreement for demonstration project  20 properties in initial phase  Acquire and rehab foreclosed properties  Recently facilitated purchase of 34 lot foreclosed subdivision from FDIC for redevelopment  Partner funding acquisition and rehab from own capital  LBA to spearhead acquisition via property pipeline  Affordability built into business model

Public/Private Development Partnerships Currently negotiating partnership agreement with following parameters  $20 million capital commitment  Purchase and rehab up to 500 properties  Properties positioned for resale or rental  Focus on single family  LBA to provide property sourcing

Other Programmatic Initiatives Greenspace Assemblage  Creation of temporary and permanent greenspace  Assisting City of Atlanta with initiative to double greenspace in City  Current acquisition projects underway

Other Programmatic Initiatives Community Gardening (Tentative)  Potential temporary repurposing of property  Alternative means of property management  Community building  Improve accessibility of fresh produce for local neighborhoods

Contact Christopher Norman Executive Director Main Direct