Group items tagged

United States Government Accountability Office. "Mortgage Foreclosures: Additional Mortgage Servicer Actions Could Help Reduce the Frequency and Impact of Abandoned Foreclosures." 1-86. Washington, D.C.: U.S. GAO, 2010. Summary: "Entities responsible for managing home mortgage loans--called servicers--may initiate foreclosure proceedings on certain delinquent loans but then decide to not complete the process. Many of these properties are vacant. These abandoned foreclosure--or "bank walkaway"--properties can exacerbate neighborhood decline and complicate federal stabilization efforts. GAO was asked to assess (1) the nature and prevalence of abandoned foreclosures, (2) their impact on communities, (3) practices that may lead servicers to initiate but not complete foreclosures and regulatory oversight of foreclosure practices, and (4) actions some communities have taken to reduce abandoned foreclosures and their impacts. GAO analyzed servicer loan data from January 2008 through March 2010 and conducted case studies in 12 cities. GAO also interviewed representatives of federal agencies, state and local officials, nonprofit organizations, and six servicers, among others, and reviewed federal banking regulations and exam guidance. Among other things, GAO recommends that the Federal Reserve and Office of the Comptroller of the Currency (OCC) require servicers they oversee to notify borrowers and communities when foreclosures are halted and to obtain updated valuations for selected properties before initiating foreclosure. The Federal Reserve neither agreed nor disagreed with these recommendations. OCC did not comment on the recommendations. Using data from large and subprime servicers and government-sponsored mortgage entities representing nearly 80 percent of mortgages, GAO estimated that abandoned foreclosures are rare--representing less than 1 percent of vacant homes between January 2008 and March 2010. GAO also found that, while abandoned foreclosures have occurred

Accordino, John and Johnson, Gary (2000). Addressing the Vacant and Abandoned Property Problem. Journal of Urban Affairs, 22(3), 301-315. Abstract: "Vacant and abandoned property is increasingly recognized as a significant barrier to the revitalization of central cities. This study sheds some light on the nature of the property abandonment problem and on current city efforts to address it. It is based upon the findings of a survey of the 200 most populous central cities in the United States, conducted during the summer and fall of 1997, and on follow-up interviews with a portion of the survey population, conducted during the summer of 1998. The findings of the survey and interviews indicate that vacant and abandoned property is perceived as a significant problem by elected and appointed officials in the nation's largest central cities. This type of property affects many aspects of community life, including housing and neighborhood vitality, crime prevention efforts, and commercial district vitality. Single- and multi-family housing, retail properties and vacant land are the most problematic types of vacant and abandoned property for most cities. Cities use a variety of techniques to address this problem, including aggressive code enforcement, tax foreclosure, eminent domain, and cosmetic improvements. One-third of the cities surveyed use a variety of other innovative tools to combat the vacant and abandoned property problem. Nevertheless, current efforts to combat the problem suffer from a number of shortcomings that are described in the article."

Cleveland Community Research Partners and ReBuild Ohio. (2008). "$60 Million and Counting: The Cost of Vacant and Abandoned Properties to Eight Ohio Cities." Executive Summary: "This research documents the magnitude and cost of the vacant and abandoned properties problem in eight Ohio cities Cleveland, Columbus, Dayton, Ironton, Lima, Springfield, Toledo, Zanesville. The research found: * 25,000 vacant and abandoned properties * Widespread vacancies in both large and small cities * $15 million in annual city service costs * $49 million in cumulative lost property tax revenues to local governments and school districts * Weakened neighborhood housing markets with evidence of property flipping * Limited capacity of cities, on their own, to track and address vacant and abandoned properties

Samsa, Matthew J. (2008). "Reclaiming Abandoned Properties: Using Public Nuisance Suits and Land Banks to Pursue Economic Redevelopment," Cleveland State Law Review 56:189-232. Excerpt from Report: "This Note examines the methods of attacking abandonment. The next section, Part II, describes the problems presented by abandoned and vacant housing. Part III examines the effectiveness of code enforcement and traditional tax foreclosure. Part IV analyzes privatized nuisance abatement suits and receiverships. Part V discusses land banks. Part VI argues that using broadly empowered privatized nuisance abatement suits for individual parcels and land banks for mass acquisitions is the most effective means of addressing abandoned property, and Part VII concludes with a brief review of the overall abandonment discussion.

Griswold, Nigel G., and Patricia E. Norris (2007). "Economic Impacts of Residential Property Abandonment and the Genesee County Land Bank in Flint, Michigan." The MSU Land Policy Institute. Available at http://www.smartgrowth.umd.edu/pdf/BestThesisAward2007PDF.pdf Summary: "This study documents work by the Genesee County Land Bank (GCLB) to alleviate the burden of abandoned and tax-foreclosed properties in the City of Flint, Michigan. The costs of property abandonment and direct and indirect effects of GCLB programs are estimated. Results suggest that abandoned housing does indeed have a negative impact on the values of houses in close proximity and that GCLB programs ameliorate these negative impacts."

Cohen, James R. (2001). "Abandoned Housing: Exploring Lessons from Baltimore. Housing Policy Debate." 12(3), 415-48. Abstract: "Population loss and economic decline have resulted in thousands of abandoned homes in major U.S. cities. Although abandoned homes are symptomatic of other problems, they also contribute to neighborhood decline and frustrate revitalization. This article provides an overview of the national scope of abandoned housing and profiles Baltimore's strategy for addressing this problem. Challenges in Baltimore's revitalization planning include the necessity of and financial requirements for a comprehensive approach and the difficulty of reaching consensus. Widespread property "flipping" hampers prevention. Efforts to acquire and demolish units are constrained by difficulties in tracking ownership, felons' ownership of derelict units, and a shortage of staffing to process takings. Challenges in rehabilitating and marketing row houses include the need for subsidies to make units affordable to the most likely buyers, the omnipresence of lead paint, and the lack of foreign immigration. The article proposes a more strategic approach to the city's revitalization planning." [Also view: Culhane, Dennis P., and Amy E. Hillier (2001). "Comment on 'Abandoned Housing: Exploring Lessons From Baltimore.'" Housing Policy Debate. 12(3), 449-55.]

Dewar, Margaret and Kris Wernstedt. "Challenges in Reusing Vacant, Abandoned,and Contaminated Urban Properties." Land Lines. April 2009. 2-7. This article explores the limitations, challenges, and potential for non-profit and community developers to successfully reuse vacant, abandoned, and contaminated land.

Dewar, Margaret. "Selling Tax-Reverted Land: Lessons from Cleveland and Detroit." Journal of the American Planning Association 72, no. 2 (2006): 167-80. "Property abandonment is widespread in many northeastern and Midwestern cities. Some cities succeed better than others at moving abandoned properties to new uses. Comparing Detroit and Cleveland, where indicators of demand for land look similar, reveals that Cleveland's land bank has been an effective approach to selling tax-reverted land for reuse, while Detroit's method of land disposition has been less successful. Cleveland integrates its approach into the mayor's agenda for housing development and supports redevelopment with many complementary efforts. Cleveland's land bank conveys land with clear title, has an accurate property inventory, "banks" property, and sells for predictable, low prices." (from article)

Alexander, Frank S (2008). "Landbanking as Metropolitan Policy. Blueprint for American Prosperity." Washington, DC: The Brookings Institution. Available at http://www.brookings.edu/papers/2008/1028_mortgage_crisis_alexander.aspx Executive Summary: "Stressed by the catastrophic mortgage foreclosure crisis and the long-run decline of older, industrial regions, communities around the country are becoming increasingly burdened with vacant and abandoned properties. In order to alleviate the pressures on national prosperity caused by these derelict properties, the federal government needs to advance policies that support regional and local land banking for the 21st century. Land banking is the process or policy by which local governments acquire surplus properties and convert them to productive use or hold them for long term strategic public purposes. By turning vacant and abandoned properties into community assets such as affordable housing, land banking fosters greater metropolitan prosperity and strengthens broader national economic well-being."

Mallach, Alan (2008). "How to Spend $3.92 Billion: Stabilizing Neighborhoods by Addressing Foreclosed and Abandoned Properties. Philadelphia: Federal Reserve Bank." Available at http://www.philadelphiafed.org/community-development/publications/discussion-papers/DiscussionPapers_Mallach_10_08_final.pdf Overview: "The Housing and Economic Recovery Act of 2008 created the neighborhood Stabilization Program (NSP), under which states, cities, and counties will receive a total of $3.92 billion to acquire, rehabilitate, demolish, and redevelop foreclosed and abandoned residential properties. These funds can stabilize hard-hit neighborhoods, putting them on the path to market recovery. This will only happen, however, if they are used in ways that are strategically targeted and sensitive to market conditions. This paper outlines 11 key principles that states, counties, and cities should follow as they plan for and use NSP funds."

Culhane, Dennis P., and Amy E. Hillier (2001). "Comment on 'Abandoned Housing: Exploring Lessons From Baltimore.'" Housing Policy Debate. 12(3), 449-55. Abstract: "For most cities, the possibility of transforming unused property into community and city assets is as yet hypothetical. Fiscal constraints limit the amount of land acquisition, relocation, and demolition that cities can undertake. Private investors, unsure of which neighborhoods have a chance of becoming self‐sustaining, are reluctant to take risks in untested markets. Cities need to create citywide planning strategies for land aggregation and neighborhood stabilization and to develop analyses of the risks and opportunities associated with redevelopment opportunities in specific markets. Research seems sorely needed. Although the policy world cannot and will not stand still waiting for academics to design the perfect study or to collect all the data to model the potential effects of various policy options and investments, analysis that can play a more immediately supportive role can and should be done now." Also view: Cohen, James R. (2001). "Abandoned Housing: Exploring Lessons from Baltimore." Housing Policy Debate. 12(3), 415-48

Vacant and abandoned properties pose challenges to city prosperity and economic health. However, these lands can be pursued as opportunities for economic and fiscal growth

Brophy, Paul and Vey, Jennifer, 2002. "Seizing City Assets: Ten Steps to Urban Land Reform," The Brookings Institution, October 2002. http://www.brookings.edu/~/media/Files/rc/reports/2002/10metropolitanpolicy_brophy/brophyveyvacantsteps.pdf Introduction: "One of a city's greatest assets is its available land for development. Unfortunately, many cities have land and properties that are vacant, abandoned, or under-used, with few policies and regulations in place to convert these assets into valuable, revenue-generating sites. This brief outlines ten action steps that state and local governments can follow to facilitate the development of urban land and buildings. Compiling an inventory of vacant parcels, planning for the assembly and reuse of land, and working to eliminate the many legal and administrative barriers to acquisition and development are just some of the actions the authors recommend for creating a more transparent, efficient, and effective system for private-market land development. The brief will discuss these and other proposed steps, and will highlight examples of successful practices implemented in states and localities throughout the U.S."

A slow process of out-migration, loss of jobs, loss of population and the recent housing crisis has left cleveland with a host vacant homes, approximately 13,000. Due to rehabilation costs exceeding potential sales prices and a mis-match in productive (land/economic) uses, nearly 80% of these vacant homes make fiscal sense to demolitish. This has left the city and remaining neighborhoods to explore untraditional ways of redeveloping. It has also lead to a growing trend of foreign investment in it's neighborhoods, from Israel to the United Kingdom, all hoping the real estate market will stabilize.

Mallach, Alan and Lavea Brachman. "Ohio's Cities At a Turning Point: Finding the Way Forward." Metropolitan Policy Program, Brookings Institution, 2010.