Dealing with Vacant and Dilapidated Properties December 11, 2019 - - PowerPoint PPT Presentation

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Dealing with Vacant and Dilapidated Properties December 11, 2019 - - PowerPoint PPT Presentation

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Dealing with Vacant and Dilapidated Properties December 11, 2019 Kelly Larson Lincoln County Economic Development Foundation LcedfDirector@Outlook.com 785-524-8954 Agenda Why are we talking about this now? Whats the big deal?

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Dealing with Vacant and Dilapidated Properties

December 11, 2019

Kelly Larson

Lincoln County Economic Development Foundation LcedfDirector@Outlook.com 785-524-8954

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Agenda

  • Why are we talking about this now?
  • What’s the big deal?
  • What can we do about it?

– Land Banks

  • Audree Aguilera, City of Lyons

– Vacant Property Registration Ordinances

  • Russell
  • Questions
  • Next Steps
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What’s the Big Deal?

  • Number of Housing Units in Lincoln County

– Total in 2016 = 1844

  • Occupied = 1387

– All the county’s population lives in 75.2% of housing units – Average Household Size = 2.25 people – Median Household Income = $44,509

  • Spending money on goods and services
  • Generating sales taxes
  • Generating income taxes
  • Generating intangibles taxes

– Median Home Value = $75,440

  • Paying property taxes

Source: ESRI Reports found on www.LiveLincolnCounty.com (Home > Work > Data & Demographics)

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What’s the Big Deal?

  • Number of Housing Units in Lincoln County

– Total in 2016 = 1844

  • Vacant = 457

– Nobody lives in 24.8% of housing units – Average Household Size = 0 people – Median Household Income = $0

  • No spending on goods and services
  • No sales taxes
  • No income taxes
  • No intangibles taxes

– Median Home Value = $???

  • Paying significantly less property taxes

Source: ESRI Reports found on www.LiveLincolnCounty.com (Home > Work > Data & Demographics)

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What’s the Big Deal?

  • Number of vacant units in the county trending

upwards

– 2000 = 17.5% – 2010 = 23.7% – 2016 = 24.8% – 2021 = 25.2%

Source: ESRI Reports found on www.LiveLincolnCounty.com (Home > Work > Data & Demographics)

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What’s the Big Deal?

  • Number of vacant units by city

Source: American Fact Finder (https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml)

City Total Units Vacant Units Percentage Barnard 61 31 51% Beverly 100 31 31% Lincoln 774 189 24% Sylvan Grove 194 55 28%

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What’s the Big Deal?

  • Number of Commercial Buildings in Lincoln

County

  • Occupied

– Employee people – Generate sales taxes – Pay significantly more property taxes

  • Vacant

– Employee no one – Do not generate sales taxes – Pay significantly less property taxes

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SLIDE 8

What’s the Big Deal?

  • Vacant properties are:

– Unsightly

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What’s the Big Deal?

  • Vacant properties are:

– A public health and safety concern

  • Collapsing roofs
  • Falling stone, glass, etc.
  • Rodents and feral cats
  • Encourages bad behaviors/crime

– A public cost

  • Police, fire, code enforcement
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What’s the Big Deal?

  • Vacant properties are:

– A drag on property values – And make it hard to sell adjacent properties – Don’t carry their fair share of the tax burden

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What’s the Big Deal?

  • Example:
  • House #1 - Occupied

– Modest house with a family – 2016-2019 Assessed Value

  • 17% increase in value

– 2016-2019 Property Taxes

  • Increased by $92.84
  • House #2 - Vacant

– Right next door to House #1 – Modest house, vacant and dilapidated – 2016-2019 Assessed Value

  • 18% decrease in value

– 2016-2019 Property Taxes

  • Decreased by $29.84
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SLIDE 12

What’s the Big Deal?

  • Example:
  • Downtown Building #1 – Occupied

– 2016-2019 Assessed Value

  • 4% increase in value

– 2016-2019 Property Taxes

  • Decreased by $6.04
  • Downtown Building #2 - Vacant

– Very similar to #1 in size but vacant and dilapidated – 2016-2019 Assessed Value

  • 17% decrease in value

– 2016-2019 Property Taxes

  • Decrease by $111.64
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What’s the problem?

  • Fewer and fewer properties are shouldering

the burden of supporting our county

– Infrastructure – Schools – Health care – Business

  • Let’s raise the base.
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What do we do about it?

  • Existing tools

– Code enforcement – Volunteer efforts – Tax foreclosure sale

  • New tools

– Land Banks – Vacant Property Registration Ordinances

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Land Banks

Audree Aguilera City of Lyons

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Nuts and bolts of land banking

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What is a land bank?

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Setting Up A Land Bank

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Getting Started

  • Land Bank Board
  • Ordinance
  • Adoption of Policy
  • Adoption of Application
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Inventory Management

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SLIDE 22

Property cataloging and tracking

  • Master Spreadsheet
  • Property Files
  • Financial Tracking
  • Property Ledger Sheets
  • Sold Properties
  • Watch List Properties
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SLIDE 23
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SLIDE 24

Paperwork process and Document set

  • Property File Checklists
  • Process Guides
  • Template Documents & Forms
  • Tax Exemption
  • www.kansas.gov/cota/Forms/Property_Tax_Exemption_

Application.html

  • Back taxes
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SLIDE 25

Titles

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SLIDE 26

Title Abstracting and deeds

  • Title Agencies & Title Officers
  • Title Commitments
  • Owner’s Policies of Title Insurance
  • Title Tracking
  • Quieting Titles
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Property acquisitions and dispositions

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Property acquisitions

  • Property Donations
  • Demolitions
  • Tax Sales
  • Redemption Periods
  • Title Insurance
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Property dispositions

  • Offers vs. Set Prices
  • Property Purchase Application
  • Development Agreement
  • Confidentiality of Offers
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K.S.A. 12-59

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K.S.A. 12-59

  • 12-5903(f)
  • Publication of Inventory
  • Annual Reporting
  • 12-5907(f)
  • Notice of Sale
  • 12-5909(a)
  • Tax Exemptions
  • 12-5909(b)
  • Property Tax Forgiveness
  • http://www.kslegislature.org/li/b2019_20/statute/012

_000_0000_chapter/012_059_0000_article/

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Do your research before you purchase

Title Issues

Deceased Owners Multi-Owners Liens Mortgages/ Debts

Floodplain Special Assessments

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How, when, and why?

  • Industrial Park
  • 2005
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Lyons Industrial Park

Commercial Development

  • Transferred from Rice

County

  • 3 existing business
  • 1 new business

development

  • 4 open lots for future

development  Lot Free to Business  Specials for Utilities Waived

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SLIDE 35

Su Sunset Hou

  • using

Low-Income Housing

Open pen Spac Space

6 homes built. Rent-to-own

Develop elopmen ment

Properties in land bank to be used for park development Park Land was acquired and transferred to the Land Bank Op Open Land Parts of the property in floodplain Floodplain Properties not used for park used for Floodplain Open Space

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Quiv ivira Hou

  • using

Subdivision Housing Development

Envir ironme

  • nmenta

ntal l Study tudy

Partnership with USD405 and local businesses. Ne Need for r Ho Housi sing KHRC MIH $350,000 Grant 14 14 Ho Home mes Properties Transferred to Land Bank Emp Empty ty Field NRA put in place as an economic incentive to build NRA NRA

KDHE Brownfields

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SLIDE 37

Bolt

  • lton Buil

ildin ing

Public Safety

Fut Futur ure e Devo

  • Pr

Projec

  • ject

The non- profit group

  • nly had

$10,000 in funds. No Non- Pr Profit

Property transferred to Land Bank KDHE Brownsfield Demolished

Demo moliti tion Wall Collapsed in Spring of 2016 Pub Public Saf Safety ty The city condemned the property for demolition. Condemne mned Downtown Property Community Center

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Questio ions?

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Helpful resources

  • County Government:
  • Register of Deeds
  • Appraiser’s Office
  • Tax Information and Parcel Details
  • Recorded Documents (Laredo)
  • Parcels:
  • City GIS
  • https://www.kansasgis.org/orka/
  • Public vs. Private counties
  • People:
  • White Pages (subscription service)
  • Find a Grave (free)
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SLIDE 40

Giv Give us s cal all!

Let our success be your success!

City of Lyons Community Development Coordinator Audree Aguilera

CDC@LYONSKS. ORG

620-257-2320 LYONSKS.OR G

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SLIDE 41

Vacant Property Registration Ordinance

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Purpose of VPRO

  • Reason for an ordinance

– Gives local government a tool to discourage vacancy and abandonment – Ensure the owner is known to the city and can be contacted – Ensure the owner is aware of their obligations and local codes/regulations – Set a fee on vacant properties that can be used to support code enforcement, life safety services, incentives

  • Communities that have a VPRO

– Wyandotte County, Wichita and Russell

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SLIDE 43

Russell’s VPRO

  • Been in effect approx. 2 years

– Registering all properties still a work in progress

  • Components of their ordinance

– Purpose

  • Recognizes abandoned and vacant buildings create

problems

– Blight, health/life safety, crime, discourages economic development

  • Those problems increases city costs

– Police, fire, code enforcement

  • Must have an accurate list of properties to maintain

public health, safety and welfare

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Russell’s VPRO

  • Components of their ordinance (continued)

– Definitions

  • Vacant, abandoned, unsecured, etc.

– Public Officer

  • Fire Chief
  • Started out as city manager then planning dept.
  • Info entered into their fire/police info system
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Russell’s VPRO

  • Components of their ordinance (continued)

– Process

  • Public officer determination

– Or complaint form (can be submitted by neighbor or any citizen)

  • Public officer delivers written notice to owner
  • Owner has 20 days to register or show cause it is not

vacant/abandoned

– 10 days for Public Officer to make determination

  • Owner submit registration form

– Owner’s address (and local contact) – Mortgagee – Timetable for returning property to occupied use – Timetable for marketing property – Documentation of marketing efforts – List of co-owners and lien holders – Fee schedule

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Russell’s VPRO

  • Components of their ordinance (continued)

– Fee Schedule

  • Initial registration period

– First 6 months – Fee » Residential = $50 » Commercial = $100

  • Re-registration

– After first 6 months and all subsequent years – Fees » Residential = $250/year » Commercial = $500/year

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Russell’s VPRO

  • Components of their ordinance (continued)

– Incentives to help actively market the property

  • Waive zoning fees
  • Provide city fees for 60 days if leased within 90 days of

initial registration

– Electric, water, sewer, solid waste removal

  • Waive permitting fees if remodeling occurs within 90

days of initial registration

– Marketing Exception to Registration

  • If building is being actively marketed

– Failure to Register – Appeals Process

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Russell’s VPRO

  • Results

– Registration still a work in progress – Positive movement on houses

  • 4 houses demolished by owners
  • More houses put on the market

– No movement on downtown properties yet – There have been lots of grumblers

  • Not during council meetings discussing the ordinance
  • Grumbled after being served

– Positive comments from fire chief and city clerk

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Next Steps

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Next Steps

  • Council’s discuss how to move forward
  • Funding opportunities

– Pending downtown historic designations

  • Grants – planning and stabilization (i.e. hire structural

engineer, repair roof and masonry, etc.)

  • Tax credits

– CDBG Grant Programs

  • Housing rehabs and demolition
  • Downtown rehabilitation

– Dane G. Hansen Foundation – VPRO Fees

  • Code enforcement
  • Seed funding for Land Bank
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Questions?

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SLIDE 52

Kelly Larson

Lincoln County Economic Development Foundation 785-524-8954 LcedfDirector@Outlook.com