Bdavidson Called Meeting to Order at 9:15. Introductions Were Made

VPWG MinutesDRAFT
February 10th, 2012

Attendees: Darla D’Anna, MWCDC; Jeanne McNutt, UPP; Kevin Hanley, CNNC; Laura Chrissie?, Robert Germany, LCG; Tom Hardy, CNNC/OPDC; Demi Kolke, OBB; John Huck, NSLC; Paul Johnson,MWSS; Andrew Dash, DCP; James Eash, LC;Doug Stewart, OPDC; Harry Johnson, Councilman Lavelle; Holly McIntosh, MO; Andrew DeWitt, Council Pres. Harris;BDavidson, staff; ENusser, staff;

BDavidson Called meeting to order at 9:15. Introductions were made.

Discussion: The group engaged in an open discussion regarding issues or questions that have regarding vacant property reclamation.

Q: Do groups have city maintain properties? Or do they contract to someone else?
A: Done it both ways, usually easier for city to do it, especially for liability reasons. Use neighborhood licensed contractors for roof work once, usually use city’s contractors. Mt Washington has done work themselves on vacant lots, but not buildings. Note that visible repairs on houses could persuade lien holders to hold on to their lien. Depending on what you’re doing with the property may affect choices regarding maintenance.

Q: What are people’s knowledge of and experiences with tax abatements vs exemptions?
A: Jackie Weitzel at Terra Settlements has information on this. Abatements will still go through on land reserve properties (opposite of what was previously understood). There is a tax exemption clause in the deed when purchasing properties out of the land reserve from the city which states that no one may apply for a tax exemption on that parcel for 15 years after land reserve. This predates the 3 and 10-year tas abatement programs the City since created. Abatements are allowed as far as we know, but there’s no “official” word. Notes: in December the city extended a couple of abatement programs-Act 42. Also, the April Session for BAC will be on Tax Issues and VPWG is welcome to attend.

Update: A CDC Treasurer’s Sale property on Lowrie Street got pushed to auction, and the group had a hard time getting a hold of the private individual who took this action. The finally did get in touch and Troy Hill has stepped out of the way and is allowing this individual to take it through auction instead of potentially counterbidding, understanding that the individuals’ plan is In line’ with their vision for the community.

Q: Has anyone see the Real Estate Reps that are going door to door, asking residents if they want to sell their properties? How do LMI communities push back against land speculators/investors who want to come in and buy properties?
A: Lawrenceville isn’t seeing out of town issues, more so seeing local landlords not being responsible for their properties. Several neighborhoods are having issues with elderly residents selling properties for cash to property investors, quick, cash transactions that don’t reflect true market value and mean less ideal investors are entering the neighborhood.

Q: Can one property owner hold back an entire development?
A: Largely depends on scale of development can be done in phases, but land rights are still crucial. If property is in Land Reserve, city will give you an official letter to prove site control for banks/developers.
To address speculators, make sure they’re paying. Keep 311 calls for code enforcements, keep relationships with city council and BBI.

Treasurer’s Sale Update:
Staff gave the overview of properties that are moving through various recent past and upcoming sales.A draft schedule was provided that was prepared by staff and not the City.

Land Reserve:
The group reviewed the land reserve report and property reserve status report provided by staff. 52 parcels are past due out w/clear title. Letters can be coming from the city, be prepared for closing or filing for time extensions. There is still room in land reserve given parcels due out and parcels coming in.

Land Banking Bill:
Philadelphia has introduced land bank legislation in preparation for when the State passes HB 1682. Here in PGH, LRTF recommended Mayor create steering committee to oversee Land Recycling efforts. This is largely an interim step before land bank creation, Philadelphia did not want this interim effort, and so passed legislation to create a land bank the day they are enabled to do so. Philadelphia, State and Pittsburgh will be updated at next meeting.

City’s Comprehensive Plan:
Andrew Dash briefed the group on the Open Space, Parks&RecChapter which includes formal and “informal” open space: informal = vacant, abandoned, etc. properties from throughout the city. Public process was underwent in early 2011. The last 4-5 months, DCP has been working on the plan, specifically: What is the future system going to look like? Parks in the future? What are we going to do with vacant parcels? Open space planning is focused on what to do with property once it changes hands via T-sale/land bank/etc. Groups should note that there will be another round of public meetings in the late spring. DCP is also organizing city ‘road shows’ to get feedback from individual communities prior to larger meetings.

Discussion:
The group had a deeper discussion regarding auctions as a possible end result of the CDC Land Reserve process. Troy Hill pushed a parcel into Treasurer’s Sale. An individual got wind of this and wanted it. They are a lawyer and objected to the sale, forcing it to auction. Troy Hill tried to meet to figure out options, finally got a hold of this individual. For right now, Troy Hill has backed off to allow individual to take it. Typically city requires individual to have a reuse plan, and can enforce this plan by ‘reverting’ ownership back to the City if it isn’t followed through on. Community group can use this enforcement mechanism after 2 years.

Does this set a precedent where any individual can use reserve process? Because the process is not bullet proof, the City usually defaults to challenges because push back could result in greater losses of the entire process for everyone. Land banks could solve these challenges; state legislation takes liability away from City. Until point of clear title a community group can lose the property to a qualified objector. If objector comes forward can face highest bid, sealed bid, or city determined higher and best use.

Condemnation List:
Holly MacIntosh spoke w/ Chuck Half who has been working on a logging system for the condemnation list, which will be ready to go early next week. Groups will likely have access in a greater way to this, but unclear exactly how as of yet. Updates will most likely be done on a monthly basis. Seasonally, usually condemnations begin in April/May. Staff asked groups to be prepared to evaluate and provide feedback in the near future as this list is being compiled and BBI bid packages are assembled for spring demo’s.

Fannie Mae REO’s:
Fannie Mae First Look Program. Any time they have a property they’re ready to market, community nonprofits get a 24 or 48 hour window to declare interest in property before general public. In order to buy, have to be a prequalified group, this is a fairly simple form to fill out,staff will distribute the info on how to pre-register.

There was no new business and the meeting adjourned at 11:00am.