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CDCS Pushes For ‘Land Bank’ Leg
By JENNY DeHUFF & ANDREW OVERTON, The Bulletin
Philadelphia — A new Pennsylvania House proposal would allow cities and towns to consolidate the ownership of vacant and abandoned properties into community-run “land banks” that would be used for public activities.
The proposal by state Rep. John Taylor, R-177th, of Philadelphia, aims to give communities a say in area development by consolidating the ownership of these problem properties and would give local communities the ability to obtain, organize and sell properties.
According to city records, there are about 60,000 such properties in Philadelphia that would qualify. Under the proposal, Philadelphia could amass these properties, creating a one-stop-shop for potential buyers.
“A number of different people own those parcels — owners who may have passed away, moved away, or abandoned that property. It’s very hard to be able to buy or acquire those places to rehabilitate them or make new housing to strengthen those neighborhoods,” Rick Sauer, executive director of the Philadelphia Association of Community Development Corporations.
Currently eight states allow community land banks, the most successful being in Flint, Mich., which has been hit particularly hard by the decline of auto industry.
The land banks system is a voluntary one. Local governments would be able to assemble an authority with five appointed non-paid members from the community that would hold the developers responsible.
“It’s only as effective as the communities that use it,” Mr. Taylor said yesterday in an Urban Affairs Committee hearing on the bill.
The bill, Mr. Taylor said, would protect communities from “bad property owners” whose only concern is that tenants pay the rent rather than the appearance of the property.
John Kromer, senior consultant at the Fels Institute of Government at the University of Pennsylvania, called the bill a “modest step” during his testimony to the committee.
“These properties are not goldmines,” Mr. Komer said. “They’re leftovers that no one cares about.”
Abandoned properties cause a drain on local communities. Right now, an abandoned house brings down property values and increases likelihood of criminal activity and costs to maintain that property.
The city has to provide services like lawn maintenance, boarding up the building and fire prevention.
Demolition costs start at $20,000 on buildings in the city, which falls on the shoulders of taxpayers.
Since many of these vacant and abandoned parcels lack ownership, they do not contribute to the to the city’s tax base.
“If we can go in there and rehabilitate that own, develop a new property there, you can get that property back and improve the life of the neighborhoods around it,” said Mr. Sauer.
More abandoned properties translate into increase fire and police presences, due to arsons and other criminal activities. Vacant properties also bring down the property values of surrounding homes.
The key is not to “view vacant property as a nuisance but as potential assets,” said Mr. Kromer, who served for eight years as Director of the City of Philadelphia’s Office of Housing and Community Development, the City’s housing policy agency.
According to Mr. Sauer, the cost of the land bank system in Philadelphia would be low, since the city can use existing staff to manage the process.
“In reality, this is a win for neighborhoods and getting vacant properties into productive use, and given the city’s financial situation its facing, this makes good fiscal sense for the city,” said Mr. Sauer.
State Rep. Karen Beyer, R-131st, of Lehigh County, expressed concern abuses could arise if selfish developers end up as a members of their local land bank authorities.
Nathan Benefield, director of policy research for the Commonwealth Foundation, had reservations about letting local governments run the land banks.
“There’s good evidence that the government is not very good at being in the sales business,” Mr. Benefield said. “That’s something you want private banks and realtors to be in charge of.”
Additionally, if the local governments had the land it could create liability issues of someone where injured on any of the properties.
Jenny DeHuff can be reached at jdehuff@thebulletin.us
Andrew Overton can be reached at aoverton@thebulletin.us.
The proposal by state Rep. John Taylor, R-177th, of Philadelphia, aims to give communities a say in area development by consolidating the ownership of these problem properties and would give local communities the ability to obtain, organize and sell properties.
According to city records, there are about 60,000 such properties in Philadelphia that would qualify. Under the proposal, Philadelphia could amass these properties, creating a one-stop-shop for potential buyers.
“A number of different people own those parcels — owners who may have passed away, moved away, or abandoned that property. It’s very hard to be able to buy or acquire those places to rehabilitate them or make new housing to strengthen those neighborhoods,” Rick Sauer, executive director of the Philadelphia Association of Community Development Corporations.
Currently eight states allow community land banks, the most successful being in Flint, Mich., which has been hit particularly hard by the decline of auto industry.
The land banks system is a voluntary one. Local governments would be able to assemble an authority with five appointed non-paid members from the community that would hold the developers responsible.
“It’s only as effective as the communities that use it,” Mr. Taylor said yesterday in an Urban Affairs Committee hearing on the bill.
The bill, Mr. Taylor said, would protect communities from “bad property owners” whose only concern is that tenants pay the rent rather than the appearance of the property.
John Kromer, senior consultant at the Fels Institute of Government at the University of Pennsylvania, called the bill a “modest step” during his testimony to the committee.
“These properties are not goldmines,” Mr. Komer said. “They’re leftovers that no one cares about.”
Abandoned properties cause a drain on local communities. Right now, an abandoned house brings down property values and increases likelihood of criminal activity and costs to maintain that property.
The city has to provide services like lawn maintenance, boarding up the building and fire prevention.
Demolition costs start at $20,000 on buildings in the city, which falls on the shoulders of taxpayers.
Since many of these vacant and abandoned parcels lack ownership, they do not contribute to the to the city’s tax base.
“If we can go in there and rehabilitate that own, develop a new property there, you can get that property back and improve the life of the neighborhoods around it,” said Mr. Sauer.
More abandoned properties translate into increase fire and police presences, due to arsons and other criminal activities. Vacant properties also bring down the property values of surrounding homes.
The key is not to “view vacant property as a nuisance but as potential assets,” said Mr. Kromer, who served for eight years as Director of the City of Philadelphia’s Office of Housing and Community Development, the City’s housing policy agency.
According to Mr. Sauer, the cost of the land bank system in Philadelphia would be low, since the city can use existing staff to manage the process.
“In reality, this is a win for neighborhoods and getting vacant properties into productive use, and given the city’s financial situation its facing, this makes good fiscal sense for the city,” said Mr. Sauer.
State Rep. Karen Beyer, R-131st, of Lehigh County, expressed concern abuses could arise if selfish developers end up as a members of their local land bank authorities.
Nathan Benefield, director of policy research for the Commonwealth Foundation, had reservations about letting local governments run the land banks.
“There’s good evidence that the government is not very good at being in the sales business,” Mr. Benefield said. “That’s something you want private banks and realtors to be in charge of.”
Additionally, if the local governments had the land it could create liability issues of someone where injured on any of the properties.
Jenny DeHuff can be reached at jdehuff@thebulletin.us
Andrew Overton can be reached at aoverton@thebulletin.us.
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