1. DEVELOPING AND IMPLEMENTING A COMPREHENSIVE BLIGHT STRATEGY PLAN: NORTHUMBERLAND COUNTY’S EXPERIENCE Housing Alliance Webinar March 27, 2015 1

2. Timeline October, 2011 Summit Organized by Rep. Kurt Masser March 2012 Blight Task Force of Private & Public Sector Officials Organized April/May/ July, 2012 3 Task Force Meetings August, 2012 Final Report Issued Fall, 2012 Funding Applications Submitted 2

3. Blight Summit Objectives Provide information about tools currently available to address blight Ascertain participant interest in tackling the problem aggressively, through a multi- municipal basis Discuss Next Steps Invitees Municipal & County officials (selected/ appointed) Media Speakers (PA Housing Alliance, Senator Argall, Allentown Mayor Ed Pawlowski) Takeaways Blight is worse than ever, due in part to a poor economy. Municipal Offices have experienced frustration in dealing with blight, and are open to new ideas/approaches. Progress is possible through a comprehensive, coordinated partnership between municipalities, the County, and the private sector. 3

4. Overall Goal Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Image Source: www.seanseahsg.comwww.seanseahsg.com 4 Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes Goal 2: Clarify Roles Regarding Development and Implementation of Strategies Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort

5. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes Goal 2: Clarify Roles Regarding Development and Implementation of Strategies Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.seanseahsg.comwww.seanseahsg.com 5

6. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.coachingcompany.co.zawww.coachingcompany.co.za 6

7. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.empowernetwork.comwww.empowernetwork.com 7

8. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Municipal Roles Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.blogs.warwick.ac.ukwww.blogs.warwick.ac.uk 8

9. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Municipal Roles Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.jessewatkins.comwww.jessewatkins.com 9

10. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Municipal Roles Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: http://lvdailytimes.comhttp://lvdailytimes.com 10

11. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.platteville.orgwww.platteville.org 11

12. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.flmnetwork.comwww.flmnetwork.com 12

13. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: http://lvdailytimes.comhttp://lvdailytimes.com 13

14. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Multi-municipal Level Goal 3: Define Extent of Problem Goal 4: Discuss Current Effort Image Source: www.sigalonenvironment.soup.iowww.sigalonenvironment.soup.io 14

15. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Muti-municipal Level Goal 3: Define Extent of Problem How are municipalities defining blight? Goal 4: Discuss Current Effort Image Source: http://www.ij.orghttp://www.ij.org 15

16. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Muti-municipal Level Goal 3: Define Extent of Problem How are municipalities defining blight? What is known about the extent of the problem? Goal 4: Discuss Current Effort Image Source: www.problem ‑ sign.jpg 16

17. Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convener of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Mutli-municipal Level Goal 3: Define Extent of Problem How are municipalities defining blight? What is known about the extent of the problem? How do municipalities capture data about the number of blighted properties and the status of the blighted property? Goal 4: Discuss Current Effort Image Source: www.developers.google.comwww.developers.google.com 17

18. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convenor of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Muti-municipal Level Goal 3: Define Extent of Problem How are municipalities defining blight? What is known about the extent of the problem? How do municipalities capture data about the number of blighted properties and the status of the blighted property? Goal 4: Discuss Current Effort What are municipalities already doing to address the problem of blighted properties? Image Source: www.thinkbigmagazine.comwww.thinkbigmagazine.com 18

19. Initial Meeting April, 2012 Step 1: Review Task Force Goals Overall Goal: Develop a Comprehensive Plan for Implementing Effective Strategies to Address Blight in the County Goal 1: Define Outcomes What are the desired outcomes? How will success be defined? Goal 2: Clarify Roles Regarding Development and Implementation of Strategies County Roles Convenor of Task Force Provider of CDBG Resources Conveyor of Powers (as Redevelopment Authority) to address blight under the State Urban Redevelopment Law Municipal Roles Key Player Possible Provider of State CDBG Entitlements Implementer of Effective Strategies to Prevent or Remediate Blight, Possibly at a Muti-municipal Level Goal 3: Define Extent of Problem How are municipalities defining blight? What is known about the extent of the problem? How do municipalities capture data about the number of blighted properties and the status of the blighted property? Goal 4: Discuss Current Effort What are municipalities already doing to address the problem of blighted properties? How are these efforts succeeding/ failing ? 19

20. Initial Meeting: Step 2 Quick Review of Major Tools to Address Blighted Properties Act 90 of 2010 Neighborhood Blight Reclamation and Revitalization Act Act 135 of 2008 Blighted and Abandoned Property Conservatorship Law State Urban Redevelopment Law Act 70 of 1998 Crime of Municipal Housing Code Avoidance Act 5/Act 133 of 1998 Prohibited Purchases at Tax Sales 20

21. Second Meeting Task Force Review of Strategies Task Force Post-It Note Voting Task Force Prioritizes Most Effective Strategies By Categories: Prevention Remediation Redevelopment Image Source: www.jessewatkins.comwww.jessewatkins.com 21

22. Third Meeting Draft Report Mailed to Task Force Feedback Provided by Task Force Report Modified to Reflect Task Force Feedback Image Source: www.jessewatkins.comwww.jessewatkins.com 22

23. Summary of Task Force Blight Report Recommended Prevention Strategies  Comprehensive Property Maintenance Code  “Bad Actor” State Laws  Countywide At-Risk Property Early Warning System  District Justice Enforcement of Blighted Property Regulations Image Source: www.e3contentstrategy.blogspot.comwww.e3contentstrategy.blogspot.com 23

24. Recommended Prevention Strategy Comprehensive Property Maintenance Code  The Blight Task Force encourages municipalities to enact a comprehensive property maintenance code  The International Property Maintenance Code, adopted by many municipalities, provides clear guidance to code enforcement officers and property owners regarding violations. Summary of Task Force Blight Report Image Source: www.ebay.comwww.ebay.com 24

25. Recommended Prevention Strategy “Bad Actor” State Laws Encourage municipalities to take advantage of State laws prohibiting “Bad Actors” from purchasing more properties at tax sales. Bad Actors are property owners:  With code violations  Who are tax delinquent  Whose rental licenses have been revoked Summary of Task Force Blight Report Image Source: www.productionrealtyrentals.comwww.productionrealtyrentals.com 25

26. Recommended Prevention Strategy Countywide At-Risk Property Early Warning System Municipalities should develop a county-wide early warning system to capture data on properties that are at-risk of becoming blighted in the near future.  The data base should:  Include properties with delinquent taxes or utilities  Include properties with recorded municipal liens  Include properties on the list for sheriff/tax sales  Be on a public web-site for municipalities to review  At-Risk properties should be put on a “watch” list for code inspections by municipalities. Summary of Task Force Blight Report Image Source: www.brockport.eduwww.brockport.edu 26

27. Recommended Prevention Strategy District Justice Enforcement of Blighted Property Regulations  Municipalities should improve communication with District Justices, encouraging them to deal firmly but fairly with owners of blighted properties.  Municipalities must share information with District Justices about the need for their support, as well as their role in the blight prevention/remediation process. Summary of Task Force Blight Report 27

28. Recommended Remediation Strategies  Ticket code violations as summary offenses.  Implement provisions in Act 90 of 2010.  Charge repeat code violators with Second Degree Misdemeanors.  Pursue appointment of property conservatorship under State law.  Continue to allocate CDBG funds for acquisition and/or clearance of blighted properties. Summary of Task Force Blight Report Image Source: www.e3contentstrategy.blogspot.comwww.e3contentstrategy.blogspot.com 28

29. Recommended Remediation Strategies Ticket Code Violations as Summary Offenses Encourage municipalities to enact ordinances that ticket for a code violation as a summary offense.  Modest fines for first offense; increasing for subsequent offenses Summary of Task Force Blight Report Image Source: www.wisegeek.comwww.wisegeek.com 29

30. Recommended Remediation Strategies Implement Provisions in Act 90 of 2010 Neighborhood Blight Reclamation and Revitalization Act  Allows municipalities to places liens on subject property (and any other property owned by the same owner in the Commonwealth) for costs incurred in achieving code compliance  Also allows for denial of permits to owners that are delinquent in paying taxes, or convicted of serious code violations  Allows extradition of code violators charged with criminal offense under Crimes Code Summary of Task Force Blight Report Image Source: www.cityofberkeley.infowww.cityofberkeley.info 30

31. Recommended Remediation Strategies Charge Repeat Code Violators With Second Degree Misdemeanors Municipalities should encourage the District Attorney to charge repeat code violators with a 2 nd degree misdemeanor, which could result in the imprisonment of the offender.  Offender must have four summary convictions for the same violation at the same property  First Degree Misdemeanor for five summary convictions Summary of Task Force Blight Report 31

32. Recommended Remediation Strategies Pursue Appointment of Property Conservatorship Under State Law Encourage appropriate entities to pursue appointment of property conservatorship under State law  The conservator (could be Housing/Redevelopment Authority or other enumerated organizations under State law) makes property repairs/demolishes property under court supervision.  Court of Common of Common Pleas may allow the conservator to recoup repair costs by selling the property. Summary of Task Force Blight Report Image Source: www.clearcorpsdetroit.orgwww.clearcorpsdetroit.org 32

33. Recommended Remediation Strategies Continue to Allocate CDBG Funds for Acquisition and/or Clearance of Blighted Properties Encourage municipalities and the County to continue to allocate CDBG funds for acquisition and/or clearance of blighted properties.  A number of municipalities receive CDBG funds each year through the State; the County also receives an allocation of CDBG funds for the balance of the County.  The maximum amount (30%) should continue to be allocated to blight reduction activities.  Opportunities to leverage other funds through the State should be fully explored. Summary of Task Force Blight Report Image Source: http://lvdailytimes.comhttp://lvdailytimes.com 33

34. Summary of Task Force Blight Report Recommended Redevelopment Strategies  Acquire Property Through Eminent Domain  Incentivize Private Development Image Source: www.e3contentstrategy.blogspot.comwww.e3contentstrategy.blogspot.com 34

35. Recommended Redevelopment Strategies Acquire Property Through Eminent Domain  Redevelopment Authorities have powers under State law to acquire vacant, blighted properties for redevelopment, after providing the owner with notice/time to make corrective repairs.  The owner must be paid the fair market value.  Properties can be marketed to potential developers for redevelopment. Summary of Task Force Blight Report Image Source: www.vanewsblog.comwww.vanewsblog.com 35

36. Recommended Redevelopment Strategies Incentivize Private Development Encourage municipalities to enact programs to incentivize private development. Examples:  LERTA (Local Economic Revitalization Tax Assistance Act) phases in real estate taxes on improvements over a period of up to ten years.  Tax Increment Financing earmarks real estate taxes to cover borrowing to fund improvements needed for major redevelopment projects.  Federal Historic Tax Credits and other Federal and State tax credits encourage developers to invest in major redevelopment projects. Summary of Task Force Blight Report Image Source: www.quantstocktrader.blogspot.comwww.quantstocktrader.blogspot.com 36

37. Fourth Meeting: Putting the Pieces Together- Joint Meeting With Municipalities  Described Funding Opportunities To Address Blight  Provided Copies of Sample Ordinances  Highlighted Success Stories 37

38. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Meeting with State, June 2012 Purpose: Gain feedback on ideas for funding from the Commonwealth Note: The success of applications will be greatly enhanced if municipalities apply as a consortium, with the County taking the lead. 38

39. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Proposals for Funding Applications  The overall goal is to develop a $3 million pot of funds to address blight removal/ remediation in the County.  Communities participating in this initiative will be able to leverage current funds at their disposal by 4 or 5 times.  The aim is to reduce blighted properties by 30% in 3 years; by 50% in five years. 39

40. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Keystone Communities (PA DCED)  $500,000 Application: Requires 1:1 match  Proposed Match: CDBG entitlement communities commit CDBG funds for blight  Total: $390,000 (assuming communities and County budget the 30% maximum)  Balance of Match: Comes from County Housing Trust funds 40

41. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Keystone Communities Application  Communities that participated in this application were required to implement Act 90 of 2010 (sample ordinance is available).  Participating communities were encouraged to: Enact the International Property Maintenance Code. Disqualify “bad actors” (owners of properties with code violations, delinquent taxes, or revoked rental licenses) from participating in tax sales. Enact a ticketing ordinance to cite code violators with summary offenses. Encourage municipalities to enact LERTA to incentivize private development. 41

42. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Keystone Communities Application Entitlement Communities  Funding in the application is set aside for each entitlement community that provides matching funds (according to the percentage of matching funds contributed by the community and the County in comparison to the grant as a whole).  The entitlement community needs to spend the earmarked funds for blight removal within 24 months; unspent funds are reallocated to other communities.  The Housing Authority was the applicant for the funding, and entered into a sub-recipient agreement with each participating entitlement community. 42

43. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Keystone Communities Application Non-Entitlement Communities  County solicited proposals from non-entitlement communities to utilize $200,000 in County CDBG funds and Act 137 Housing Trust Funds 43

44. Putting the Pieces Together: Consensus From Meeting With Municipalities 44  Criteria developed for selection (mandatory)  Communities must implement Act 90  Communities must demonstrate what actions they have taken  Property must be vacant  Property must meet state definition of blight

45. Putting the Pieces Together: Consensus From Meeting With Municipalities 45  County Commissioners appointed Blight Review Committee to rank blighted property referrals  Municipalities were required to acquire the properties through the tax sale process or other means  Housing Authority provides funds to municipality to demolish or rehabilitate the property

46. Putting the Pieces Together: Consensus From Meeting With Municipalities 46  Discretionary Rating Criteria:  Property is in the county repository of unsold properties, is listed for judicial sale, or is owned by the municipality or entity willing to sell for FMV or less  Property is located on a gateway street  Property is a major health and safety problem in its current condition  Property is a corner property  Bonus Points: Municipality is willing to (or has already committed) funds toward the acquisition/demolition of the property or is provide in-kind services (labor, debris removal) Maximum points: 50

47. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Other Funding Opportunities  State Neighborhood Assistance Program (corporate contributions leveraged by State tax credits)  $50,000 contribution made by local bank in exchange for tax credits in 2013  75% tax credit under NAP-Special Program Priorities  Application for $18,000 in additional credits approved in early 2014 47

48. Putting the Pieces Together: Consensus From Meeting With Municipalities Funding Opportunities To Address Blight Other Funding Opportunities  Municipal Assistance Program (PA DCED)  Foundation Grants 48

49. Results To Date  Commitment of Neighborhood Assistance Program funding ($68,000); 7 properties have been demolished  Over ten communities have implemented Act 90.  No less than five communities have implemented ticketing ordinances. Image Source: www.baseballwithmatt.blogspot.comwww.baseballwithmatt.blogspot.com 49

50. Results To Date (cont.)  DCED has approved $500,000 in Keystone Opportunities Program funding to match $500,000 provided by county and municipalities  Sixteen properties acquired to-date and five have been demolished  Two properties have been acquired for rehabilitation Image Source: www.baseballwithmatt.blogspot.comwww.baseballwithmatt.blogspot.com 50

51. Results To Date (cont.)  Coal Township and Shamokin have initiated conservatorship actions re thirteen properties  A meeting was held with the DJ’s to discuss the blight report  The process of notifying municipalities about upcoming tax sales was fine-tuned Image Source: www.baseballwithmatt.blogspot.comwww.baseballwithmatt.blogspot.com 51

52. Replicable 52 Similar process undertaken in McKean and Clearfield Counties Image Source: wikipedia.org

53. Contact Information Christopher Gulotta The Gulotta Group, LLC 717-580-0439 gulottagroup@gmail.com www.gulottagroup.com 53