City of Albuquerque VACANT & ABANDONED HOUSES TASK

City of Albuquerque

VACANT & ABANDONED HOUSES

TASK FORCE

FINDINGS & RECOMMENDATIONS

PRESENTED TO THE CITY COUNCIL

January 17, 2018

1.17.2018

CONTENTS

1. EXECUTIVE SUMMARY 1

1.1 Introduction 1

1.2 Vacant and Abandoned Houses Task Force 1

2. RECOMMENDATIONS 3

2.1 Introduction 3

2.2 Legislative Recommendations 3

2.3 Administrative Recommendations 3

2.4 Enforcement 4

2.5 Technology Improvements 5

3. LAND BANKS 7

3.1 Introduction 7

3.2 Case Studies 7

3.3 Moving Albuquerque Forward 8

3.4 Potential Funding Sources 9

4. APPENDICES 11

A. Glossary 13

B. Dening the Problem 15

B.1 Substandard Properties List 15

B.2 Vacant Buildings Registry 15

B.3 Properties with the Most Liens 15

B.4 Current Process for Vacant and Abandoned Properties 19

C. Recommended Amendments to the Uniform Housing Code 21

D. Case Study: City of Tucson Code 25

E. Land Banks - Frequently Asked Questions 27

F. Case Study: City of Las Cruces Aordable Housing Land Bank and Trust Fund Policies 31

G. Resolution 17-230 45

H. Bibliography 49

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VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 1

1. EXECUTIVE SUMMARY

1.1 INTRODUCTION

The City of Albuquerque estimates that there

are approximately 1,200-1,300 residential

properties that are vacant, abandoned, and/or

substandard spread throughout the City, with a few

neighborhoods or areas where these properties are

concentrated. Foreclosure has started on some of

these properties, leaving them in a state of limbo,

and many are tax delinquent. Other contributing

factors include reverse mortgages, probate or the

heirs are unknown, catastrophic damage to the

structure, lack of homeowners’ insurance, and

general poverty and the high rate of drug abuse in

our community. These conditions have a negative

impact to neighborhoods, families, and individuals

who are seeking safety and security in their

homes and maintenance of their property values.

Enforcement on these properties have created a

drain in City resources. This report is a summary

of the Vacant and Abandoned Houses Task Force

ndings and recommendations for the City Council

to consider in abating these conditions.

The City’s Uniform Housing Code denes the

following terms that are used throughout this report:

• Vacant Building - A dwelling, dwelling unit,

eciency dwelling unit, habitable space,

residential building, or structure lacking the

continuous habitual presence of human

beings who have a legal right to be on the

premises for a period of 90 days or longer but

excluding property under a listing agreement

with a real estate agent licensed in New

Mexico.

• Substandard Building - Any building or portion

thereof, including any dwelling unit, guest

room or suite of rooms, or the premises on

which the same is located, in which there

exists any of the following listed conditions

[set forth in §§ 14-3-4-2 et seq.] to an

extent that endangers the life, limb, health,

property, safety or welfare of the public or

the occupants thereof shall be deemed and

declared a Substandard Building.

1.2 VACANT AND ABANDONED HOUSES

TASK FORCE

In September 2017, the Albuquerque City

Council adopted R-2017-185, which created a

7-member task force to explore options and make

recommendations for addressing vacant and

abandoned houses within the City of Albuquerque.

The Resolution acknowledged the myriad of

challenges in addressing this issue including:

• Enforcement of minimum health and safety

requirements for vacant or abandoned

residential properties;

• The City sta and resources needed to

monitor over 600 properties that are either

already a public nuisance or are in danger of

becoming a public nuisance, and the arduous

process of nuisance abatement enforcement

that is presently overwhelming available

resources; and

• The potential negative impact on property

values and resale of homes and the disruption

of the quality of life in Albuquerque’s

neighborhoods due to dilapidation and

potential attraction of illicit activities.

The Task Force, comprised of City sta from Code

Enforcement, Family and Community Services,

Legal Department, Council Services, Mayor’s

Oce, two community members, and one planning

consultant (Consensus Planning), was asked to

explore alternative methods of addressing vacant

and abandoned houses that would ultimately help

reduce property crime and better leverage City

resources. Specic issues explored were as follows:

• Options for ecient enforcement methods

to address the most pressing problems

2 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

associated with vacant and abandoned

houses;

• Options for collaborative and proactive

programs to prevent the dilapidation or

deterioration of such houses;

• Options for the City to help facilitate

recommissioning such houses for people and

families; and

• Any other relevant and helpful options relating

to this issue.

The Task Force held eight meetings starting on

October 25, 2017. Two of the meetings included

conference calls - one with the Philadelphia Land

Bank and one with the Center for Community

Progress, a national non-prot organization that

provides technical assistance to communities

grappling with transforming blighted, vacant, and

other problem properties back into productive use to

support neighborhood vitality.

The Task Force acknowledges that the work

completed since October is just the beginning steps

for addressing these issues, and is ready and willing

to continue working on behalf of City Council.

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 3

2. RECOMMENDATIONS

2.1 INTRODUCTION

The Task Force created a series of

recommendations for the City Council to consider

in addressing the issues associated with vacant,

abandoned, and substandard properties. The

recommendations are based on research of best

practices from other municipalities, discussions

with other governmental entities and non-prot

organizations, and the fact that the City’s Uniform

Housing Code has not been updated in many years.

The recommendations are listed in the categories

of legislative, administrative, enforcement, and

technology improvements.

2.2 LEGISLATIVE RECOMMENDATIONS

1. Explore the establishment of a City-managed

land bank for acquisition and disposition

of vacant and abandoned properties. This

should include an initial assessment and

technical assistance from the Center for

Community Progress (see Section 3: Land

Banks).

2. Revise violations of the Uniform Housing

Code provisions to allow for imposing civil

penalties instead of criminal penalties to

expedite the process. If civil procedures

are found to be insucient, two additional

methods for addressing non-compliance

include: (1) appointment of a receiver

or conservator where a judge appoints

someone to repair or rehabilitate a problem

property; and (2) injunctive relief where

the hearing ocer or administrative judge

requires the responsible party to take a

specic action or face serious consequences.

3. Pursuant to Section 14-3-5-15, amend the

complaint system that includes both a hotline

and a website component for reporting

violations of the Property Maintenance

Ordinance.

4. Explore legislative options at the State

level for extending the statute of limitations

regarding collection of municipal liens.

5. Explore legislative options to allow

receivership statuses and/or appointment

of a conservator for parties of interest, such

as non-proﬁt organizations, recognized

neighborhood associations, community

development corporations, and other interest

groups. (Pennsylvania's Abandoned and

Blighted Property Conservatorship Act, which

allows the court to appoint a conservator to

rehabilitate and be responsible for bringing

the deteriorating building into compliance, is

a model to follow).

6. Add new denitions to the City’s Uniform

Housing Code (see Glossary in Appendix).

2.3 ADMINISTRATIVE RECOMMENDATIONS

1. Implement and maintain a Substandard

Property Registry that is coordinated with the

City's existing Vacant Property Registry.

2. Establish a progressive fee for registration

of vacant and abandoned houses to help

recover the cost of Code Enforcement. In

establishing the registration fee, consider the

following:

 The registration fee should not be set

so high that it discourages people from

registering; and

 Establish a progressive fee structure that

increases each year the property remains

vacant.

3. Redirect Code Enforcement fees collected by

the City from the General Fund to the Code

Enforcement Division budget to recover

enforcement costs and to increase stang

levels.

4. Waive fees after one year if the owner or

responsible party demonstrates that they

are adequately maintaining and securing a

vacant property.

5. Focus Code Enforcement activities in the

neighborhoods and districts with the most

problematic properties by utilizing the Vacant

Building Registry and the new Substandard

Property Registry and on-line map (see

Recommendation 2.5.1).

6. Through the Ofﬁce of Neighborhood

Coordination, provide resources, support,

and training to neighborhood associations

on the procedures for notifying the

4 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

Code Enforcement Division of vacant,

abandoned, or substandard properties (see

Recommendations 2.5.1 and 2.5.2).

7. Increase partnership and coordination

between different agencies, departments,

established neighborhood groups, and

local non-proﬁts with an interest in issues

pertaining to vacant, abandoned, and

substandard properties, such as:

• Code Enforcement Division

• County Assessor’s Ofﬁce

• City Department of Technology and

Innovation

• Environmental Health Department

• Albuquerque Police Department

• COAST

• Safe City Strike Force

• Albuquerque Fire Department

• Housing Advisory and Appeals

Committee (HAAC): This Committee acts

as an advisory body to the Department

of Human Services in the administration

and enforcement of the Uniform Housing

Code and provides other functions that

may be provided for elsewhere.

8. The Oce of Neighborhood Coordination

should coordinate with the Neighborhood

Watch Program to conduct "neighborhood

sweeps" to identify problem properties.

2.4 ENFORCEMENT RECOMMENDATIONS

1. Adopt a new policy that prohibits building

permits or business registrations being

issued by the City for any property that has

outstanding City of Albuquerque liens. This

applies to any liens for board-up, clean-up,

Solid Waste, and Certiﬁcate of Substandard

liens until they are paid in full or the property

owner or responsible party agrees to a

payment plan that is signed and approved by

the City.

2. Enforce registration of vacant properties

and provide penalties to owners/responsible

parties of vacant properties for non-

compliance.

3. Impose civil penalties on mortgage holders

for maintenance of “zombie properties” and

increase their exposure for premises liability

claims related to those properties. This

approach could be modeled after the State of

New York legislation (2016), which imposes a

daily penalty for non-compliance by state and

federally-chartered banks, savings banks,

savings and loan associations, and credit

unions. The penalty only applies to the rst

lien mortgage holder that is authorized to

accept payment of the loan.

4. Require owner or responsible party of vacant

property to maintain liability insurance. (This

is similar to the City’s HEART Ordinance,

which requires dog owners to maintain

insurance for dogs that have been declared

dangerous).

5. Require owner or responsible party to

create a detailed property plan that includes

a timeline for maintaining, rehabilitating,

reoccupying, or demolishing the problem

property.

6. Impose civil penalties on property owner or

responsible party for the cost imposed on the

local government as a result of increased ﬁre,

police, and building inspection actions at the

property. Require the assessment to be paid

upon the ﬁling of a foreclosure deed.

7. In collaboration with Bernalillo County,

identify vacant or abandoned properties

with delinquent taxes to force transfer of

ownership through a number of methods,

such as expedited judicial foreclosure

process, court appointed receivership, or

automatic sale or transfer to a land bank.

2.5 TECHNOLOGY IMPROVEMENT

RECOMMENDATIONS

1. Create, maintain, and update an on-line map

of vacant, abandoned, and substandard

properties. The Code Enforcement Division

should manage and make this map available

to neighborhood association representatives

upon request. The on-line map should

include aggregated data from the City’s

Vacant Building Registry and Substandard

Property Registry to identify the most

problematic areas of the City, but not show

individual properties. Once this system is in

place, Code Enforcement and the Oce of

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 5

Neighborhood Coordination should work on

advertising this new complaint system to the

public in the Neighborhood Newsletter.

2. Expand the use of the Planning Department’s

software tracking system to allow the public

to view the status of vacant, abandoned, and

substandard buildings.

3. Consider allowing the Vacant Property

Registry to be managed by a third party. Pro

Champs, based out of Florida, is an example

of a third party company that partners with

municipalities to manage vacant properties

and provides technical assistance on

assessing housing stock and market, drafting

property registration ordinances, identifying

responsible parties and ensuring compliance

with registry requirements, maintaining the

registry, and collecting data to quantify cost

savings in time and resources.

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3. LAND BANKS

3.1 INTRODUCTION

The Center for Community Progress estimates

that as of June 2017, there are approximately 170

land banks operating across the United States

(see Appendix E: Land Banks - Frequently Asked

Questions). There is a concentration of land banks

in the rust-belt

states of Ohio,

Illinois, Michigan,

and New York,

most of which

were established

at the state level

by their Attorneys

General. There

are also land

banks established

or in the process of being established in New

Mexico for the purpose of addressing the need for

aordable housing, including the City of Las Cruces

which is scheduled for adopting legislation this

month (January 2018), and the Village of Ruidoso.

Described in the article “What is a Land Bank” (Dan

Kildee and Amy Hovey, Center for Community

Progress), land banks can sell or convey acquired

property as follows:

• Sell through negotiated sales;

• Convey property for other than monetary

consideration;

• Sell, lease, or manage property with terms

deemed to be in the interest of the land bank;

• Utilize land bank nancing tools for tax

foreclosed and other targeted properties; and

• Support local planning decisions by adhering

to local priorities as to use and transfer of land

bank owned properties.

The article lists the four critical elements to creating

a successful land bank initiative:

• Connect the land bank to the tax collection

and foreclosure system (delinquent property

tax is a rst priority debt, higher than mortgage

debt).

• Scale the land bank at the metropolitan level,

or around the most diverse real estate market

possible (i.e., land banks are most eective

when they are not relegated to ownership of

only the worst of the foreclosed or abandoned

properties).

• Ensure a land bank is policy driven and

transparent in policies and transactions.

• Emphasize community engagement and

participation (i.e., Albuquerque neighborhood

associations).

3.2 CASE STUDIES

A description of several land banks are described

below:

• City of Las Cruces - The City of Las Cruces

is scheduled to adopt legislation referred to

as the “Aordable Housing Land Bank and

Trust Fund Policies” on January 16, 2018.

The City’s intent is to establish a Land Bank

and a Housing Trust Fund that is geared

to address the “full continuum of housing

needs from the homeless to the homebuyer,

especially in the area of aordable housing”.

The ordinance provides the land bank with the

authority to acquire real property or interests

in property by gift, transfer, exchange,

foreclosure, condemnation, lease, purchase,

or with other terms or conditions that the

land bank considers appropriate. The land

bank’s authority also includes acquisition

through purchase contracts, lease purchase

agreements, installment sales contracts,

and land contacts, and transfers. The

ordinance includes a provision for determining

whether to acquire a property, that the land

bank considers a wide range of qualitative,

quantitative, physical, and property status

factors listed in the ordinance. The ordinance

also provides guidance for disposition of the

acquired properties (for more detail on the

City of Las Cruces Land Bank, see Appendix

F: Case Study: City of Las Cruces Aordable

Housing Land Bank & Trust Fund Policies).

• State of New York - Established in 2013,

the “Land Banks Community Revitalization

Initiative” is a grant program administered

by the State Attorney General of New York

that distributes funds from a settlement with

banks involved in the mortgage crisis. New

York land banks have reclaimed at least

1,995 properties from abandonment, returned

“The essential function of a land bank is

the ability to streamline tax foreclosure

proceedings and clear title to property that

reverted to public ownership. This function

allows communities to plan for the reuse

of properties that previously were dicult

to acquire and redevelop, and to protect

neighborhoods from the blight and decline

often associated with tax-foreclosed

properties.” US Environmental Protection

Agency, Land Revitalization Fact Sheet,

Land Banking.

8 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

over 700 properties to the market and into

productive use, and have demolished (or

are in the process of demolishing) over 400

unstable structures.

• State of Ohio - Established by the State of

Ohio’s Attorney General in 2012, the “Ohio

Attorney General’s Moving Ohio Forward

Program” was initiated following a settlement

with mortgage lenders. Land banks from

across Ohio partnered with Habitat for

Humanity, NeighborWorks, and other

organizations to demolish blighted structures,

rebuild, and turn them back into property tax

generating, productive use. Ocials noted

that neighboring property owners began

taking better care of their property after

restoration had occurred.

• State of Illinois - The Illinois Attorney General

used funds obtained through a 2012

settlement with mortgage companies to

assist housing eorts throughout the state.

The Cook County Land Bank was seeded

with $6M and has since acquired over 300

properties, most of which are blighted homes.

Before selling these properties, the Land Bank

cleans liens, nes, and other red tape o the

property’s title. The Land Bank sold over 230

of these blighted homes to rehab companies,

who in turn, have revitalized them into

productive use. The Cook County Land Bank

has become self-sustaining and does not use

taxpayer funds for operations.

• Michigan - Established in 2004, the “Land

Bank Fast Track Legislation” was intended

provide communities with better legal and

nancial tools to put vacant and abandoned

properties back into productive use. The

law established state land bank authority

and enabled the establishment of city and

county land bank authorities. The law allows

these local authorities to expedite quiet title

on its properties, thereby eliminating all liens

and past claims, and make them available

at a nominal price. The Genessee County

Land Bank Authority is the largest operating

land bank in the country with over 10,000

acquisitions of properties and structures since

its inception. There are many other land banks

in Michigan that operative with much smaller

inventory and only use the land bank tools on

a few properties each year.

• Fort Collins, Colorado - Adopted by the City

of Fort Collins in 2001, the purpose of the

Fort Collins Land Bank is to acquire, hold,

and sell property to assist aordable housing

developers to build housing for low income

households at or below 50% average median

income (AMI). This program is much smaller

in scope than the previous examples from

New York, Ohio, Illinois, and Genessee

County.

3.3 MOVING ALBUQUERQUE FORWARD

The Task Force recommends that the City further

explore the establishment of a land bank as one

of the most important changes that the City of

Albuquerque could implement to address the return

of vacant, abandoned, and tax-delinquent properties

into productive use. As a home rule municipality,

the City has the ability to adopt new legislation to

establish a land bank without the requirement of

state-enabling legislation (see Appendix F: Case

Study: City of Las Cruces Aordable Housing Land

Bank & Trust Fund Policies).

It is acknowledged that a future land bank for

Albuquerque would likely be modest in scale

relative to the number of properties in its inventory

at any one time. As a rst step, the City should

engage with the non-prot, Center for Community

Progress for technical assistance in creating a

land bank that is specically crafted to legal and

administrative conditions, and scal constraints in

Albuquerque.

The Task Force recommends that the City

Council, as part of adopting legislation that

establishes a land bank, establish an appointed

advisory board that is tasked with identifying and

acquiring targeted, tax-delinquent and foreclosed

properties, as well as receiving donated properties.

Membership is recommended to include, but not

be limited to, City sta from the Code Enforcement

and Real Property Divisions of the Planning

Department and Community Development Division

of the Family and Community Services Department;

neighborhood representatives; representatives

from a locally-owned bank, locally-owned mortgage

company, and a non-prot community development

corporation that specializes in housing rehabilitation

and development.

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 9

The Task Force recommends that the land bank

establish a process for assessment and acquisition

that includes:

• Collecting data on property condition,

ownership status, tax history, utility

information, emergency calls, foreclosures,

occupancy status, existing liens, Code

Enforcement costs, etc.

• Based on the data collected, determining

priorities for acquisition of properties that pose

the greatest harm to the neighborhoods in

which they are located.

• In addition to acquisition, structuring the

land bank to receive donations of problem

properties (land and/or structures)

3.4 POTENTIAL FUNDING SOURCES

• Foundation grants - land banks are typically

eligible for foundation grants due to its

corporate structure or governmental status.

• Land sales revenue - generated when the

land bank sells properties for more than the

acquisition cost incurred by the land bank.

Land banks are able to acquire property at

below market value in a variety of ways:

 Land banks are able to accept donated

land. Property owners may want to

donate their land for the tax benets

or even to relieve themselves of the

maintenance obligations for the property.

It is advisable that the land bank conduct

proper due diligence prior to accepting

donated property. It is appropriate for a

land bank to provide a letter of acceptance

for donated properties, but not to

designate a donative value to the donor -

rather it should advise donors to consult

their tax professional for assistance in

determining the tax implications for the

donor.

 A land bank may purchase low value

properties at auctions, although it would

be bidding against other buyers.

• City General Fund - the City Council could

include a line item for seeding the land bank.

• Civil penalties and registration fees - civil

penalties and registration fees for vacant and

substandard buildings collected by the City

could be directed to the Albuquerque Land

Bank.

• Charitable contributions - coordinate with

Bernalillo County on a provision that allows

entities to be eligible for a property tax

credit (dollar for dollar reduction) or tax

deduction (lowers taxable income equal

to the percentage of the entity's marginal

tax bracket) when they make charitable

contributions to the Albuquerque Land Bank.

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VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 11

APPENDICES

A. Glossary 13

B. Dening the Problem 15

B.1 Substandard Properties List 15

B.2 Vacant Buildings Registry 15

B.3 Properties with the Most Liens 15

B.4 Current Process for Vacant and Abandoned Properties 19

C. Recommended Amendments to the Uniform Housing Code 21

D. Case Study: City of Tucson Code 25

E. Land Banks - Frequently Asked Questions 27

F. Case Study: City of Las Cruces Aordable Housing Land Bank and Trust Fund Policies 31

G. Resolution 17-230 45

H. Bibliography 49

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VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 13

A. GLOSSARY

The following list of terms do not appear in the City

of Albuquerque’s Code of Ordinances. The Task

Force recommends including these terms in the

City’s Uniform Housing Code for the purpose of

strengthening the vacant and abandoned property

abatement process. Suggested denitions below

are examples from other municipalities.

Abandoned property (see Problem properties

below)

Abate - to bring to a halt, eliminate or, where that

is not feasible, to suppress, reduce, and minimize

substandard conditions or blighting related to

residential properties.

Deteriorated property (see Problem properties

below)

Distressed property (see Problem properties

below)

Evidence of vacancy - any visual cues that

determine if a property is unoccupied. Such visual

cues include, but are not limited to, overgrown

and/or dead vegetation; accumulation of mail;

accumulation of trash, having one (1) or more of the

required utilities inactive, etc.

Foreclosure - the system by which a party who

has loaned money secured by a mortgage or deed

of trust on real property requires sale of the real

property to recover the money due, unpaid interest,

plus the costs of foreclosure, when the debtor fails

to make payment.

Foreclosure sale - the forced sale of real property

at a public auction (often on the courthouse steps

following public notice posted at the courthouse and

published in a local newspaper) after foreclosure on

that property as security under a mortgage or deed

of trust for a loan that is substantially delinquent.

The lender who has not been paid may bid for the

property using its own unpaid note toward payment,

which can result in a bargain purchase.

Land bank - a governmental or non-prot entity

that specializes in the conversion of vacant,

abandoned, and foreclosed properties into

productive use. 1) Land banks act as a legal

and nancial mechanism to transform vacant,

abandoned, substandard, and tax-foreclosed

property back to productive use. Generally, land

banks are funded by local governments’ budgets or

the management and disposition of tax-foreclosed

property. 2) In addition, a land bank is a powerful

incentive that can encourage redevelopment in

older communities generally with little available land

and neighborhoods that have been blighted by an

out-migration of residents and businesses.(3) While

a land bank provides short-term scal benets,

it can also act as a tool for planning long-term

community development. Successful land bank

programs revitalize blighted neighborhoods and

direct reinvestment back into these neighborhoods

to support their long-term community vision.

Lien - any ocial claim or charge against property

or funds for payment of a debt or an amount

owed for services rendered. This includes vacant

properties that have been found to be in violation

of the City’s Anti-Weed and Litter Ordinance or the

Uniform Housing Code Ordinance, the violation has

not been corrected in the time given, a work order

is created to have the work completed, and a lien

is led with the County Clerk’s Oce against the

property for the cost of the work performed. A lien

carries with it the right to sell property, if necessary,

to obtain the money. Most liens are enforceable

in the order in which they were recorded or led,

except tax liens which have priority over a private

citizen’s claim.

Lis pendens - a written notice that a lawsuit has

been led and then recorded with the County

Clerk's Oce concerning the title to real property or

some interest in that real property.

Local agent (see Problem properties below)

Local property management company (see

Stakeholders below)

Owner - (see Stakeholders below)

Problem properties - properties that destabilize

neighborhoods, create re and safety hazards,

drive down property values, and drain local tax

dollars. This includes any structure being used for

sleeping, eating, shelter, etc. no matter the intended

use of the structure. Below are examples of such

properties and suggested denitions:

• Abandoned property - any vacant

residential building which is frequented by

persons who are not lawful occupants of such

14 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

structure; or any vacant residential building

due to lack of maintenance or by boarding up

of its doors and windows, or other reasons,

has a substantial adverse eect on the value

of property in the immediate neighborhood;

or a residential building where the principal

use has ceased and that no longer has any

function or use.

• Deteriorated property - any dwelling unit

located in a deteriorated neighborhood;

a dwelling unit which has been, or, upon

request, is certied by a health, housing or

building inspection agency as, unt for human

habitation for rent withholding, or other health

or welfare purposes; or a dwelling unit which

has been the subject of an order by such

an agency requiring the unit to be vacated,

condemned or demolished by reason of

noncompliance with laws, ordinances or

regulations.

• Distressed property - any property that is

subject to a current notice of default and/or

notice of trustee’s sale, pending tax assessors

lien sale and/or any real property conveyed

via a foreclosure sale resulting in the

acquisition of title by an interested beneciary

of a deed of trust, and/or any real property

conveyed via a deed in lieu of foreclosure/

sale, regardless of vacancy or occupancy by a

person with no legal right to occupancy.

• Zombie property - a property that is (1)

at least three monthly payments are past

due on the mortgage or the mortgagor has

advised in writing that he or she does not

intend to occupy the property; and (2) there

is a reasonable basis to believe that the

property is unoccupied (the law provides

these visual cues to determine if a property is

unoccupied) or the property is a health risk on

account of evidence of vandalism, loitering,

criminal conduct or destruction/ deterioration

of the property. The second element also

can be satised by a governmental agency’s

declaration that the property is unt for

occupancy.

Responsible party (see Stakeholders below)

Stakeholders - being able to address problem

properties largely depends on a municipality’s

ability to properly dene local stakeholders who

either own, manage, or assume liability over those

properties. Below is a list of potential stakeholders

and suggested denitions:

• Local property management company

- a property management company and/

or certied property manager that is either

based or maintains an oce within 20 miles

of City limits and has a current business tax

certicate issued by the City.

• Owner - any person who alone, jointly or

severally with others - shall have legal title

to any premises, or dwelling units, with or

without accompanying actual possession

thereof - shall have charge, care or control

of any premises, dwelling or dwelling unit as

owner or agent of the owner, or an executor,

administrator, trustee, or guardian of the

estate of the owner.

• Responsible party - a locally identied agent,

property manager, or similar entity responsible

for or having the authority to make decisions

and required expenditures concerning a

property.

• Zombie property - (see Problem properties

above)

Vacant Building Registry - a database of vacant/

foreclosed properties that is maintained by the City

of Albuquerque Code Enforcement Division. Once

a property owner/responsible party applies to the

Code Enforcement Division for a Vacant Building

Maintenance License, (Note: language should

be added in the Uniform Housing Code to include

“responsible party”).

Vacant Building Maintenance License - a license

that is issued by the City of Albuquerque Code

Enforcement Division to the owner of a vacant

building and renewed annually by the owner, which

lists all measures to be taken to ensure that the

vacant building will be kept secure and free from

nuisance. (Note: language should be added in

the Uniform Housing Code to include “responsible

party”).

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 15

B. DEFINING THE PROBLEM

This section provides an overview of existing

conditions with regard to substandard, vacant, and

properties with the most liens. Maps that illustrate

the location of these properties are provided on

pages 16-18, and are followed by a owchart that

illustrates the current abatement process for vacant

and abandoned properties on page 19.

B.1 SUBSTANDARD PROPERTIES LIST

The current status and metrics of the Substandard

Properties List is as follows:

• There are 596 properties currently on the list

(see Substandard Properties List, page 16)

• The majority of registration dates were listed

between 2013-2017 (many entries do not list

a date)

• The oldest registration date is January 9, 2012

• The neighborhood associations with the

greatest number of substandard properties:

 La Mesa: 31

 South San Pedro: 24

 South Broadway: 23

 Trumbull Village: 17

 West Mesa: 27

• City Council Districts with the greatest

number of substandard houses, including

houses that are not within the boundaries of a

neighborhood association):

 District 6 (mostly within NAs)

 District 7 (mostly not within NAs)

 District 3 (mostly within NAs)

 District 1 (mostly not within NAs)

B.2 VACANT BUILDING REGISTRY

The current status and metrics of the Vacant

Buildings Registry is as follows:

• There are 393 properties currently on the

Vacant Building Registry(see Vacant Building

Registry map, page 17)

• There are 179 “active” properties (a building is

listed as “Active” after the owner applies for a

Vacant Building Maintenance License and the

required inspection has been completed)

• There are 39 properties pending (a building

is listed as “Pending” after the owner applies

for a Vacant Building Maintenance License,

but the required inspection has not been

completed)

• There were 131 properties that were denied

(a building is listed as “Denied” after the owner

applies for a Vacant Building Maintenance

License, but the property is already boarded up)

• There were 44 properties that were

deregistered (a building is listed as

“Deregistered” if the building has been

put back on the market and/or has been

reoccupied)

• The Neighborhood Associations currently with

the most vacant buildings include:

 Westgate Heights

– 5 approved

– 10 denied

– 2 deregistered

 Route 66 West:

– 4 approved

– 3 denied

– 2 deregistered

• The City Council Districts currently with the

most vacant buildings (includes buildings

that are not within the boundaries of a

neighborhood association):

 District 3 (many are not within an NA)

 Districts 7, 8, and 9 (lightly distributed

throughout these three districts)

 District 5 (many north and outside of

Ventana Ranch and Paradise Hills)

B.3 CURRENT PROPERTIES WITH THE

MOST LIENS

Per Sections 3-36-1 through 3-36-7 NMSA 1978,

a variety of liens may be assessed against the

personal and real property of any owner providing

lodging. The following types of liens be enforced:

• Clean up lien

• Boarding and securing lien

• Substandard lien

• Water and electricity lien

• Tax delinquent lien (per section 4-4-12 of

the City’s Code of Ordinances, the City can

le a lien for tax with the Bernalillo County

Assessor’s Oce on a property owner)

The properties that have been identied as the most

problematic due to the liens that have been led are

located throughout the City (see Properties with the

Most Liens map, page 18).

16 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 17

18 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 19

Property Becomes

Vacant/Abandoned

Vacant Building Registration

(VBR)

Received

VBR

Approved

Hearing Set

Approved?

Obtain Various

Bids for

Assessment

Abatement

Demolition

Yes

Violation

Found?

Violation

Found?

15 Days

from

NAO

Date

Create/Mail

Notice and Order

(NAO)

Re-inspection

Violations

Corrected?

Contact

Applicant to

Correct

Violations

Yes

Secure and Clean

Lien Property

Monitor Secure,

Clean and Lien as

Needed

Re-inspection

Violations

Corrected?

Yes

Resolution of

Condemnation

City Council

Property

Requires

Demolition

Nuisance

Abetment

District Court

Compliance

Close Case

Perform Title

City Council

Approval

Award Bids Demolish

Lien Property For Costs

Complaint Received

(311, Council, APD, Other)

Received

Compliance

Close Case

Notice and Order (NAO) is mailed certified with return

receipt to the owner as recorded with Bernalillo County

tax records and posted on the property. After the 15 days

the NAO and Certificate of Substandard is recorded with

Bernalillo County.

Currently demolition of the structures is the only remedy

to rectify the issues with the property.

Each demolition costs $15,000 to $30,000 depending on

the size of the structures and environmental abatement

needed.

Budget for securing, cleaning and demolition is $315,000

range, but exceeded $450,000 in fy17.

Properties that are registered vacant frequently become

substandard and require the City to

post substandard and

secure/clean.

B.4 CURRENT ABATEMENT PROCESS FOR VACANT AND ABANDONED PROPERTIES

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VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 21

C. RECOMMENDED AMENDMENTS

TO THE UNIFORM HOUSING CODE

14-3-5-14 VACANT BUILDING MAINTENANCE

AND DEFAULT MORTGAGE PROPERTY

REGISTRATION

A. The owner of a vacant building shall apply to the

Albuquerque Code Enforcement for and obtain

a Vacant Building Maintenance License 15 days

prior to vacating the premises. The Business

Maintenance License shall be renewed

annually. The owner shall pay an annual fee

to renew the business maintenance license.

Albuquerque Code Enforcement shall establish

the amount of the fee by regulation.

B. Application for a Vacant Building Maintenance

License shall be made on a form provided by

Albuquerque Code Enforcement and veried

by the owner. The application shall disclose

all measures to be taken to ensure that the

vacant building will be kept weather tight and

secure from trespassers, safe for entry by police

ocers and reghters in times of emergency,

and, together with its premises, free from

nuisance and in good order.

C. At the time of application, the owner shall

arrange for inspection of the vacant building by

Albuquerque Code Enforcement. If the owner

fails or refuses to consent to and arrange for

an inspection, Albuquerque Code Enforcement

shall rst obtain a search warrant from a court of

competent jurisdiction to authorize inspection of

the vacant building.

D. Albuquerque Code Enforcement shall

inspect the vacant building for the purpose of

determining the structural integrity of the vacant

building; the repairs necessary to ensure its

structural integrity; that it will be safe for entry

by re ghters and police ocers in time of

emergency; and that the vacant building and its

contents do not present a hazard to the public

during the time that the building remains vacant.

E. Albuquerque Code Enforcement shall issue any

orders for work needed to:

1. Adequately protect the vacant building

from intrusion by trespassers and from

deterioration by the weather; and

2. Insure that allowing the vacant building

to remain will not be detrimental to the

public health, safety and welfare, will not

unreasonably interfere with the reasonable

and lawful use and enjoyment of other

premises within the neighborhood, and will

not pose any extraordinary hazard to police

ocers or re ghters entering the vacant

building in times of emergency

F. Within 45 days of the issuance of any orders,

the owner shall bring the vacant building into

compliance with any orders that may have been

issued as conditions for the issuance of the

license.

G. Albuquerque Code Enforcement shall issue

a vacant building maintenance license only

after inspecting the building and concluding

that the building complies with the Uniform

Housing Code. The Mayor is authorized to

administer and enforce the Uniform Housing

Code as provided in §§ 14-3-5-1 et seq. if

the vacant building does not comply with any

other provisions of the Uniform Housing Code.

Albuquerque Code Enforcement shall have the

authority to inspect the vacant building at any

time.

H. The owner shall notify Albuquerque Code

Enforcement 15 days before a vacant building

becomes inhabited so that Albuquerque Code

Enforcement can inspect the vacant building

prior to occupancy.

I. Registration to the Default Mortgage Property

Registry is required for any real property located

in Albuquerque, whether vacant or occupied,

that is encumbered by a mortgage in default, is

subject to an ongoing foreclosure action by the

Mortgagee or Trustee, has been the subject of

a foreclosure action by a Mortgagee or Trustee

and a Judgment has been entered, or has been

the subject of a foreclosure sale where the title

was transferred to the beneciary of a mortgage

involved in the foreclosure and any properties

transferred under a deed in lieu of foreclosure/

sale. The designation of a property with a

defaulted mortgage as “registrable” shall remain

in place until the property is sold to a non-

related bona de purchaser in an arm’s length

transaction or the foreclosure action has been

22 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

dismissed and any default on the mortgage has

been cured.

1. Any Mortgagee who holds a mortgage on

real property located within Albuquerque

shall perform an inspection of the property

to determine vacancy or occupancy, upon

default by the mortgagor. The Mortgagee

shall, within ten (10) days of the inspection,

Code Enforcement Division, or its designee,

on forms or other manner as directed, and

indicate whether the property is vacant or

occupied. A separate registration is required

for each property, whether it is found to be

vacant or occupied.

2. Registration pursuant to this section shall

contain the name, direct mailing address, a

direct contact name, telephone number, and

e-mail address for the Mortgagee/Trustee,

and the Mortgage Servicer, and the name

and twenty-four (24) hour contact phone

number of the local property management

company responsible for the security and

maintenance of the property who has the

authority to make decisions concerning

the abatement of nuisance conditions at

the property, as well as any expenditure

in connection therewith. Registrations

will include a local agent’s name, mailing

address, telephone number, and email

address. Mailing addresses may not be post

oce boxes.

3. Mortgagees who have existing registrable

property on the eective date of this

ordinance have 30 calendar days from the

eective date to register the property with the

Code Enforcement Division, or its designee,

on forms or other manner as directed, and

indicate whether the property is vacant or

occupied. A separate registration is required

for each property, whether it is vacant or

occupied.

4. If the mortgage on a registrable property

is sold or transferred, the new Mortgagee

is subject to all the terms of this Article.

Any previous unpaid registration fees are

the responsibility of the new Mortgagee or

Trustee and are due and payable with their

initial registration. Except if it is determined

that the transferee is exempt from paying

fees then the previous mortgagee will not be

released from the responsibility of paying all

previous unpaid fees and nes, regardless

of who the mortgagee was at the time when

registration was required, including but not

limited to unregistered periods during the

foreclosure process. The provisions of this

section are cumulative with and in addition

to other available remedies. Moreover,

Albuquerque Code Enforcement Division

is authorized and empowered to refer

the previous Mortgagee’s non-payment

of previous fees and nes to a court of

competent jurisdiction for disposition.

5. If the servicing rights for a mortgage on a

registrable property are sold or transferred,

the registration must be updated to include

all the new Servicer information within 10

days of the servicing transfer.

6. If the Mortgagee owner of a foreclosed

real property sells or transfers the property

to a non-arm’s length related person or

entity, the transferee is subject to all the

terms of this Article. Any previous unpaid

registration fees are the responsibility of the

new Registrable property owner and are

due and payable with their initial registration.

Except if it is determined that the transferee

is exempt from paying fees then the previous

mortgagee will not be released from the

responsibility of paying all previous unpaid

fees and nes, regardless of who the

mortgagee was at the time when registration

was required, including but not limited to

unregistered periods during the foreclosure

process. The provisions of this section are

cumulative with and in addition to other

available remedies. Moreover, Albuquerque

Code Enforcement Division is authorized

and empowered to refer the previous

mortgagee’s non-payment of previous fees

and nes to a court of competent jurisdiction

for disposition.

7. As long as the property is Registrable it shall

be inspected by the Mortgagee, or designee,

monthly. If an inspection shows a change

in the property’s occupancy status the

mortgagee shall, within ten (10) days of that

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 23

inspection, update the occupancy status of

the property registration.

8. Properties subject to this section shall

remain under the semi-annual registration

requirement, and the inspection, security

and maintenance standards of this section

as long as they are registrable. Semi-

Annual registration shall mean 6 months

from the date of the rst action that

requires registration, as determined by the

Albuquerque Code Enforcement Division

or its designee, and every subsequent 6

months. The date of the initial registration

may be dierent than the date of the rst

action that required registration.

9. A non-refundable semi-annual registration

fee of $250.00 shall accompany each semi-

annual registration pursuant to this section.

i. If a lis pendens, deed-in-lieu of

foreclosure, or other public notice of

foreclosure is led on a property and

the property was not registered and the

registration fee paid at least 30 days

prior to the ling date, a late $100 shall

be charged per property and shall be

due and payable with the registration.

This section shall apply to the initial

registration and 30 day delinquent

registration renewals. Registrations

delinquent greater than 30 days are

also subject to additional nes as

described herein.

ii. All registration fees must be paid

directly from the Mortgagee, Trustee,

Servicer, or Owner. Third Party

Registration fees are not allowed

without the consent of Albuquerque

Code Enforcement Division and/or its

authorized designee.

10. Until the mortgage or lien on the property is

satised, or legally discharged, the desire

to no longer pursue foreclosure, the ling of

a dismissal of lis pendens and/or summary

of nal judgment and/or certicate of title,

voluntary or otherwise, does not exempt any

Mortgagee holding the defaulted mortgage

from all the requirements of this article as long

as the Mortgagee is in default.

11. Any person or legal entity that has registered

a property under this section must report

any change of information contained in the

registration within ten (10) days of the change.

12. Failure of the Mortgagee to properly register

or to modify the registration information

from time to time to reect a change of

circumstances as required by this article is

a violation of the article and shall be subject

to enforcement and any resulting monetary

penalties and/or property liens.

13. Pursuant to any administrative or judicial

nding and determination that any property

is in violation of this article, Albuquerque

Code Enforcement may take the necessary

action to ensure compliance with and place

a lien on the property for the cost of the work

performed to benet the property and bring it

into compliance.

14. Properties subject to this chapter shall be

maintained in accordance with §§ 14-3-5-14

and other applicable City of Albuquerque

code(s).

24 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

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VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 25

D. CASE STUDY: CITY OF TUCSON

CODE

EMERGENCY ABATEMENT

(a) Notwithstanding any other provision of this

chapter if, in the opinion of the code ocial,

the conditions at a property constitute an

imminent hazard, the code ocial may order

immediate abatement of the hazard without

notice. Such abatement of an imminent

hazard shall be limited to the minimum work

necessary to remove the hazard, and may

include disconnection of utilities.

(b) The city shall pay the cost and expense of

such abatement from any appropriation made

available for that purpose.

Recorder’s Oce and shall address the same

costs and procedures identied in section 16-

61, entitled abatement by the city.

(d) Whenever the code ocial nds that any

structure contains an imminent hazard or

health hazard, the code ocial may declare

such structure unt for human occupancy and

order it to be vacated or to remain vacant. A

structure declared unt for occupancy and

ordered vacated or to remain vacant under

the provisions of this section shall not be

leased, rented or occupied, and the utilities

cannot be reconnected, until it has been

inspected and deemed t for occupancy

by the city. The city shall reinspect, for the

purpose of reoccupancy, within three (3)

business days of the receipt of a written

request by the owner.

AUTHORITY AND INSPECTIONS; RE-

INSPECTION FEES; APPEAL

(a) The code ocial is authorized to make

inspections of property to determine

compliance with this chapter. Interior

inspections will be done with approval of the

owner, occupant or responsible party, or by a

court order or as otherwise authorized by law.

(b) Except as expressly provided in section

16-27 or elsewhere in the Tucson Code, no

fee shall be charged for an initial inspection

to determine the existence of a violation

of this chapter. Any person who neglects,

fails or refuses to correct the violations

contained within a notice of violation issued

pursuant to section 16-45 may be assessed

a re-inspection fee for inspections that

occur after the compliance date specied

in the Notice, where such re-inspection

demonstrates the failure to comply. The

fee for these re-inspections shall be set by

resolution or ordinance adopted by mayor

and council. Failure to pay re-inspection fees

within fourteen (14) days of assessment is a

violation of this section. Re-inspection fees

may be collected in any manner as provided

by law, including as a lien against the real

property where the violation occurred.

re-inspection fee to the code ocial through

an administrative conference in the manner

provided in section 16-71. The administrative

conference shall be the only administrative

appeal of a re-inspection fee, and no appeal

may be made to the board of appeals.

REGISTRATION OF RESIDENTIAL RENTAL

PROPERTY

(a) An owner of residential rental property shall

maintain with the assessor in the county

where the property is located information

required by this section in a manner to be

determined by the assessor. The owner

shall update any information required by this

section within ten (10) days after a change

in the information occurs. The following

information shall be maintained:

(1) The name, address and telephone number of

the property owner.

(2) If the property is owned by a corporation,

limited liability company, partnership, limited

partnership, trust or real estate investment

trust, the name, address and telephone

number of the statutory agent, if applicable,

and the name, address and telephone

number of any of the following:

(a) For a corporation, a corporate ocer.

(b) For a partnership, a general partner.

managing or administrative member.

26 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

(d) For a limited partnership, a general

partner.

(e) For a trust, a trustee.

(f) For real estate investment trust, a

general partner or an ocer.

(3) The street address and parcel number of the

property.

(4) The year the building was built.

(b) An owner of residential rental property

who lives outside this state shall

designate and record with the assessor

a statutory agent who lives in this state

and who will accept legal service on

behalf of the owner. The owner shall

designate the agent in a manner to

be determined by the assessor. The

information shall include the name,

address and telephone number of the

agent.

occupied if the information required by

this section is not on le with the county

assessor. This subsection does not

aect any lease existing on August 6,

1999.

(d) All records, les and documents that

are required by this section are public

records.

(e) A person who fails to comply with

any provision of this subsection is

responsible for a civil infraction and

shall be assessed a civil penalty of

one thousand dollars ($1,000.00),

plus an additional one hundred dollars

($100.00) for each month after the date

of the original violation until compliance

occurs. The court shall not suspend

any portion of the civil penalty provided

by this subsection.

(f) Notwithstanding subsection (e) of this

section, if a person complies within ten

(10) days after receiving the complaint

that notices the violation, the court shall

dismiss the complaint and shall not

impose a civil penalty.

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 27

E. LAND BANKS – FREQUENTLY

ASKED QUESTIONS

The following section is an excerpt of frequently

asked questions (FAQs) from the Center for

Community Progress website in regard to land

banks:

How are land banks created?

Typically, land banks are created as public entities

by a local ordinance, pursuant to authority provided

in state-enabling legislation. Land banking programs

can also be developed within existing entities, such

as redevelopment authorities, housing departments,

or planning departments.

How many land banks are operating throughout

the country?

As of June 2017, the Center for Community

Progress estimates there are approximately 170

land banks and land banking programs in operation

throughout the country. Michigan, Ohio, and New

York currently have the greatest number of active

land banks.

How does land banking work?

Land banks are designed to acquire and maintain

problem properties and then transfer them back

to responsible ownership and productive use in

accordance with local land use goals and priorities,

creating a more ecient and eective system

to eliminate blight. To accomplish these tasks,

land banks are granted special powers and legal

authority pursuant to state-enabling statutes.

Though these statutes dier widely from state to

state, the more recent examples of comprehensive

land bank legislation generally grant to land banks

the following powers:

• Obtain property at low or no cost through the

tax foreclosure process

• Hold land tax-free

• Clear title and/or extinguish back taxes

• Lease properties for temporary uses

• Negotiate sales based not only on the

highest bid but also on the outcome that most

closely aligns with community needs, such

as workforce housing, a grocery store, or

expanded recreational space

The Center for Community Progress cautions that

a land bank is not a “silver bullet” for communities

struggling with blight. Though land banks are

uniquely designed to help reduce problem

properties, the policies, priorities, and activities of

a land bank must complement other community

strategies and activities, such as code enforcement,

planning and community development, and eective

tax collection and enforcement.

Aren’t land banks competing with the private

market with an unfair advantage?

No, a land bank is a direct response to a growing

inventory of problem properties that the private

market has rejected. Most vacant and abandoned

properties have serious legal and nancial barriers

that detract responsible, private investors. For

instance, many abandoned properties have

a clouded title, which introduces a level of

uncertainty and liability few responsible investors,

if any, are willing to assume. Also, many tax-

foreclosed properties have accumulated years

of back taxes that far exceed the market value of

the property. Similarly, many properties left vacant

and abandoned for too many years require an

investment in repairs that greatly exceeds what the

market could ever return. A land bank, therefore,

is designed specically to address the inventory

of problem properties the private market has

discarded, and to convert these neighborhood

liabilities into assets that advance community-based

goals.

When does it make sense to use land banking?

Any community considering the creation of a land

bank should assess numerous factors to determine

if a land bank is needed or likely to be successful.

Some common triggers for creating a land bank

include:

• Large inventories of vacant and abandoned

property;

• Properties with little to no market value;

• Properties with delinquent taxes in excess of

fair market value;

• Properties with title problems;

• Inexible policies that dictate the disposition

of public property, denying local governments

the chance to be strategic and nimble; and

• The speculation and uncertainty inherent in

the auction sale of tax-foreclosed properties.

28 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

Some jurisdictions may already have an entity or

agency (e.g. a redevelopment authority) that is

empowered with tools to eectively take control of

large inventories of problem properties and return

them to productive use, obviating the need for a

land bank. In some cases, however, such entities

are focused primarily on development, rather than

on blight elimination and stabilization strategies

in more distressed neighborhoods. Where this is

the case, the community may still want to consider

creating a land bank or land banking program.

What does a typical land bank program look

like?

While all land banks exist to serve the same

primary purpose of acquiring problem properties

and returning them to productive use, they are

quite diverse in their structure and operations.

Land banks vary greatly in terms of the types of

cities, regions, and economic conditions in which

they operate, the size of their inventories, their sta

capacity, their legal authorities, and their goals and

programs. Despite this diversity, the experience

of the Center for Community Progress has shown

that successful land banks exhibit some similar

characteristics:

• Strategic links to the tax collection and

foreclosure process. Tax delinquency

is often the most signicant common

denominator among vacant and abandoned

properties, which explains why nearly all

land banks have established strategic links

to the tax foreclosure process as a primary

source of acquisitions. This is particularly in

communities where (a) a primary cause of

vacancy and abandonment is an ineective

tax foreclosure process and (b) where there

are statutory powers, intergovernmental

agreements or policies in place for a land

bank to acquire properties through the tax

foreclosure process at little to no cost. Though

auctions can generate positive outcomes

for marketable properties, the speculative

auction rarely if ever leads to positive

outcomes for problem properties. Land banks

can and should play a key role in acquiring

and converting tax-foreclosed properties to

productive use.

• Operations scaled in response to

local land use goals. Successful land

banks have established acquisition and

disposition strategies that directly support the

implementation of local land use goals and

meet community needs. Some land banks

tackle massive inventories of extremely

unsafe and abandoned properties as part

of an urgent stabilization and public safety

strategy, while others operate selectively with

extreme deliberation. Regardless of the scale

of operations, land banks should always make

decisions based on a strong understanding of

community priorities and goals, and guided by

neighborhood, local and regional revitalization

plans.

• Policy-driven, transparent, and publicly

accountable transactions. The acquisition

and disposition of properties – especially

those that have long been harmful eyesores

– is an important and sensitive endeavor.

Successful land banks have gone to great

lengths to build and maintain trust with the

public through complete transparency in

the establishment of priorities, policies, and

procedures that govern all actions. Land

banks should make sure these ground rules

and policies are established prior to any

transactions, and annually revisited with

public input to maintain a high standard of

transparency and accountability. Moreover,

land banks should strive to create websites

that oer members of the public full access to

accurate, up-to-date information pertaining to

all land bank operations, programs, policies,

and activities, including sales listings and past

transactions.

• Engagement with residents and other

community stakeholders. There is

no substitute for engaged community

stakeholders who understand a community’s

history and goals, and whose lives are most

directly by a land bank’s work. Successful land

banks have found creative and consistent

ways to inform, engage, and empower these

active residents to help prioritize land bank

interventions and develop long-term solutions.

Whether establishing a community advisory

board or regularly hosting neighborhood

meetings, land banks should explore and

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 29

implement practices that arm a strong

commitment to inclusiveness, engagement,

and empowerment.

• Alignment with other local or regional

tools and community programs. Because

a land bank is a tool to support locally

developed land use goals, and not a goal in

and of itself, it is important to coordinate with

other blight prevention tools and programs.

Successful land banks have helped facilitate

and work within diverse collaborations

across the public, private, and nonprot

sectors that share similar economic and

community development goals. The Center

for Community Progress states that in order

to truly be eective, land bank activities

must complement existing blight prevention

eorts, including eective tax enforcement,

strategic code enforcement, neighborhood

investments, and community-based planning.

• Recurring, reliable source of funding. A

land bank’s focus is on the inventory of

problem properties the local property market

has basically rejected, and therefore will

always require some level of public support -

whether cash or in-kind - that is proportional to

the scope and scale of vacancy the land bank

is expected to help resolve. With a recurring

and reliable source of funding, land banks can

focus on the types of creative interventions

and community partnerships that are required

to transform liabilities to productive use that

meet and advance community goals.

What are some of the core powers of a land

bank?

Depending on state and local law, land banks often

have unique legal powers to support their activities

and facilitate the return of problem properties to

productive use. Though these statutes dier widely

from state to state, they generally grant the following

powers:

• Obtain property at low or no cost through the

tax foreclosure;

• Hold land tax-free;

• Clear title and/or extinguish back taxes;

• Lease properties for temporary uses;

• Negotiate sales based not only on the highest

bid, but also on the outcome that most

closely aligns with community needs, such as

workforce housing, a grocery store, or green

space; and

• Using these special powers, land banks can

streamline blight removal and create a nimble,

accountable, and community-driven approach

to returning problem properties to productive

use.

How is a land bank dierent from a

redevelopment authority?

In a few states, legislation has been passed that

grants redevelopment authorities many of the

same powers as land banks. In Louisiana, for

example, some redevelopment authorities can also

function as land banks. However, in most states,

redevelopment authorities and land banks dier

both in terms of their legal powers and their mission.

Land banks typically implement disposition policies

that allow greater exibility than a redevelopment

authority in terms of transferees and consideration.

However, unlike many redevelopment authorities,

land banks do not have the power of eminent

domain, nor do land banks have the power to tax.

As for mission, many land banks are focused on

acquiring, stabilizing, and returning to productive

use those properties that are considered to have

the most blighting inuence in a community. These

are properties that may not have an immediate

redevelopment opportunity, but are destabilizing

neighborhoods and undermining quality of life.

In comparison, a redevelopment authority is

typically focused on properties with near-term

redevelopment potential and on large scale

development projects that align with highly visible

and long-term economic development goals.

How is a land bank funded?

Land banks are generally funded through a variety

of sources, which may include revenue from the

sale of properties, foundation grants, general fund

appropriations from local and county governments,

and federal and state grants. Land banks in certain

states have received signicant funding from the

federal Hardest Hit Funds (e.g., Michigan and Ohio)

and the National Mortgage Settlement Funds

(e.g., New York and Illinois).

Financing mechanisms unique to land banks

have been included in state-enabling legislation.

For instance, in Michigan and New York, land

banks are able to recapture 50% of the taxes on

30 VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT

properties returned to the tax rolls for ve years.

In Ohio, special fees imposed on delinquent

taxpayers provide a dedicated source of funding

for land bank operations. Finding consistent and

preferably dedicated funding sources is critical to

the success of land banks, as they incur signicant

costs converting unsafe liabilities the private market

has rejected into assets that improve neighborhood

vitality. Several of the more successful land banks

from around the country are also capitalized by

their local units of government either through yearly

budget allocations or in-kind assistance such as

shared stang.

How many properties do land banks generally

have in their inventory at any given time?

Land bank inventories vary greatly from

jurisdiction to jurisdiction. Inventory sizes range

anywhere from a few properties to thousands of

properties. Reasons for this variation include the

size of the community in which the land bank is

located, the level of distress and disinvestment

in each community, the land bank’s property

acquisition process, strategy, and authorities

(including whether state law grants the land bank

the authority to pick and choose which properties to

acquire out of tax foreclosure), and the mission and

goals of the land bank.

What kinds of properties do land banks

acquire?

Most land bank acquisitions are vacant, residential,

tax-delinquent properties. In addition to tax

foreclosed parcels, land banks can acquire Real

Estate Owned (REO) properties and receive

private donations and public land transfers.

Although most properties are typically vacant

residential single-family homes or vacant lots,

land banks also acquire multifamily dwellings,

commercial and industrial properties, and in rare

cases, occupied rental properties. In fact, some

land banks even have well-developed brownelds

programs through which they acquire large scale,

formerly industrial properties.

VACANT & ABANDONED HOUSES TASK FORCE - ALBUQUERQUE CITY COUNCIL REPORT 31

F. CASE STUDY: CITY OF LAS CRUCES AFFORDABLE HOUSING LAND

BANK & TRUST FUND POLICIES

The City Council of Las Cruces is scheduled to consider adoption of its Aordable Housing Land Bank and

Trust Fund Policies on January 16, 2018. The purpose of the Land Bank is to create more housing in the

City that is aordable to persons at or below 80% of the area median income (AMI).

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G. RESOLUTION 17-230

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H. BIBLIOGRAPHY

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9595850c8a49.

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Breaking and Entering as a Legal Obligation:

Amendments to Chicago Ordinance Continue

Trend of Forcing Lenders to Maintain Vacant

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Property Even Before Assuming Title.

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