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? • 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
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)
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)
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)
What’s the Big Deal? • Number of vacant units by city City Total Units Vacant Units Percentage Barnard 61 31 51% Beverly 100 31 31% Lincoln 774 189 24% Sylvan Grove 194 55 28% Source: American Fact Finder (https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml)
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
What’s the Big Deal? • Vacant properties are: – Unsightly
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
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
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
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
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.
What do we do about it? • Existing tools – Code enforcement – Volunteer efforts – Tax foreclosure sale • New tools – Land Banks – Vacant Property Registration Ordinances
Land Banks Audree Aguilera City of Lyons
Nuts and bolts of land banking
What is a land bank?
Setting Up A Land Bank
Getting Started • Land Bank Board • Ordinance • Adoption of Policy • Adoption of Application
Inventory Management
Property cataloging and tracking • Master Spreadsheet • Property Files • Financial Tracking • Property Ledger Sheets • Sold Properties • Watch List Properties
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
Titles
Title Abstracting and deeds • Title Agencies & Title Officers • Title Commitments • Owner’s Policies of Title Insurance • Title Tracking • Quieting Titles
Property acquisitions and dispositions
Property acquisitions • Property Donations • Demolitions • Tax Sales • Redemption Periods • Title Insurance
Property dispositions • Offers vs. Set Prices • Property Purchase Application • Development Agreement • Confidentiality of Offers
K.S.A. 12-59
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/
Do your research before you purchase Title Issues Deceased Owners Multi-Owners Liens Mortgages/ Debts Floodplain Special Assessments
How, when, and why? • Industrial Park • 2005
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
Su Sunset Hou ousing Low-Income Housing Open Land Op Develop elopmen ment Open pen Spac Space Land was Properties not acquired and used for park transferred to 6 homes built. used for the Land Rent-to-own Floodplain Bank Open Space Floodplain Park Properties in land bank to Parts of the be used for property in park floodplain development
Quiv ivira Hou ousing Subdivision Housing Development Empty Emp ty Need for Ne r 14 14 Field Ho Housi sing Ho Home mes Partnership KHRC MIH Properties with USD405 $350,000 Transferred to and local Grant Land Bank businesses. NRA NRA Envir ironme onmenta ntal l Study tudy NRA put in place as an KDHE economic Brownfields incentive to build
Bolt olton Buil ildin ing Public Safety Fut Futur ure e Devo o No Non- Pub Public Pr Projec oject Profit Pr Safety Saf ty The non- Downtown Wall profit group Property Collapsed in only had Community Spring of $10,000 in Center 2016 funds. Demo moliti tion Condemne mned Property The city transferred to condemned the Land Bank property for KDHE demolition. Brownsfield Demolished
Questio ions?
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)
Giv Give us s cal all! Let our success be your success! Audree Aguilera City of Lyons Community Development Coordinator CDC@LYONSKS. 620-257-2320 LYONSKS.OR ORG G
Vacant Property Registration Ordinance
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
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
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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