Evidence Matters Transforming Knowledge

Into Housing and Community

Development Policy

F A L L 2 0 1 0

WINTER 2014

Vacant lots can be greened and repurposed for new uses, such as this play area in Pittsburgh’s East Liberty neighborhood.

Sara Innamorato

In This Issue

Vacant and Abandoned Properties:

Turning Liabilities Into Assets

1Vacant and Abandoned

Properties: Turning Liabilities

Into Assets

Targeting Strategies for

Derelict houses, dormant fac- just a symptom of larger economic

tories, moribund strip malls,

forces at work in the community; their

and other types of vacant and

association with crime, increased

abandoned properties are among the

risk to health and welfare, plunging

15Neighborhood Development most visible outward signs of a commu- property values, and escalating municipal nity’s reversing fortunes. Properties

costs make them problems in and of

Countywide Land Banks

that have turned from productive use

themselves, contributing to overall

18Tackle Vacancy and Blight to disuse are found in cities, suburbs, community decline and disinvestment.1

and rural areas throughout the country,

Local government officials, community

Temporary Urbanism:

and they vary widely in size, shape,

organizations, and residents, however,

28Alternative Approaches to and former use. But these vacant and increasingly view vacant properties as

Vacant Land

abandoned properties are more than

opportunities for productive reuse,

C O N T I N U E D O N P A G E 3

Editor’s Note

Vacancy — of both homes and land — was once considered mostly a concern of the nation’s Rust Belt, where decades of population decline left some industrial cities scrambling to protect their remaining residents from the side effects of disinvestment. In the wake of the foreclosure crisis, however, Americans nationwide are finding vacancy a much more immediate and pervasive problem. This issue of Evidence Matters looks at residential and commercial vacancy from various perspectives and examines the work that communities are doing to limit or reverse their negative effects.

The feature article, “Vacant and Abandoned Properties: Turning Liabilities Into Assets,” reviews the causes and consequences of vacancy and investigates the efforts of governments and nonprofits to better understand and alleviate the problem.

“Targeting Strategies for Neighborhood Development,” the Research Spotlight article, explores the typologies of neighborhood distress that cities are employing to better understand local conditions and most effectively target limited resources, demonstrating the importance of data in understanding the scope of the problem.

In a break from our usual format, the In Practice section of this issue features two articles, each focusing on different approaches for managing vacant land. The first, “Countywide Land Banks Tackle Vacancy and Blight,” describes the critical role of local land banks in assembling parcels of land and maintaining vacant properties so that the land can eventually be returned to productive use. The second, “Temporary Urbanism: Alternative Approaches to Vacant Land,” examines creative strategies communities and citizens are using to generate short-term uses such as stores, parks, and art projects to bring vibrancy to otherwise blighted spaces.

The two In Practice articles help readers understand the challenges of reusing vacant parcels of land, which requires different considerations than does reusing vacant properties, the primary focus of the lead article and Research Spotlight. Although we touch on the topics throughout the issue, two other forms of American vacancy deserving greater attention — and ripe for further research — are industrial and commercial vacancies. Particularly in areas of the Rust Belt that have faced extensive deindustrialization, industrial vacancy poses special challenges to cities, including the scale of the parcels, the threat of injury to trespassers, and environmental considerations. And anyone who has ever driven through a once-bustling Main Street now dominated by empty storefronts recognizes just how damaging commercial vacancy can be to a neighborhood’s vitality and morale.

I hope this issue of Evidence Matters is enlightening and helps you think about your community in new ways. Our next issue will focus on fair housing. As always, please provide feedback at www.huduser.org/forums.

— Rachelle Levitt, Director of Research Utilization Division

Photo credits from left to right: Cuyahoga County Land Reutilization Corporation; McAllen Public Library; GTECH Strategies 2

may require other solutions such

Highlights

as demolition, conversion of owner-

n The absence of universal definitions of vacancy and abandonment

occupied housing to rental housing,

complicates efforts to assess the number of vacant and abandoned

or replacement (such as constructing

properties nationally.

a solar farm on a former industrial site).

Strategies for reuse aim to stabilize and

n Vacant and abandoned properties are linked to increased rates of crime revitalize neighborhoods and may

(particularly arson) and declining property values. The maintenance or

stimulate economic recovery and growth

demolition of vacant properties is a huge expense for many cities.

or, in the case of shrinking cities, manage

n It is critical to match strategies for combating vacancy to neighborhood decline in ways that improve quality of

market conditions.

life for the remaining residents.

Defining the Problem

C O N T I N U E D F R O M P A G E 1

Properties may become vacant for a

reimagining blight and dilapidation

governments, nonprofits, and neigh-

variety of reasons, some of which

as urban farms, community gardens,

bors employ to address and reuse

are relatively benign. A property that

and health facilities. To them, empty

vacant and abandoned properties. The

is for rent or sale can be vacant for

homes can become assets in neighbor-

most desired outcome is to quickly

a short time, and a vacation home

hood stabilization and revitalization

return a property to its previous use —

might be vacant for most of the year.

that can be renovated and reoccupied.

an owner-occupied residence or a thriving

If these properties are well maintained

business. However, tight credit, weak

by responsible owners, they will not

Vacant and abandoned properties

markets, population loss, or other factors become eyesores or depress neighboring have long plagued the industrial cities

of America’s Rust Belt, but the spike

in foreclosures following the recent

recession has compounded problems

for these areas and has caused vacancy

rates to surge nationwide, especially in

recently booming Sun Belt states such

as Florida, Arizona, and Nevada. These

communities face mounting blight and

physical deterioration of properties, de-

clining tax revenues, and rising public

costs. Although nationwide factors (in

particular, the foreclosure crisis) helped

create these vacancies, local factors —

the condition of the properties, the

health of the local housing market, and

the strength of the regional economy

— are what shape the range of options

available for returning these properties

to productive use. The approach taken

to reclaim one vacant property among

many in a distressed Detroit neighbor-

hood, for example, will be different

from that taken to reclaim a property

in a rebounding Phoenix suburb —

or, for that matter, in another Detroit

neighborhood with a healthy housing

market.

Local political and economic contexts,

as well as limitations of capacity and

resources, shape the tools that local

Source: United States Census Bureau. 2012. American Community Survey 1-Year Estimates.

Note: Vacant units do not include seasonal, recreational, or occasional uses.

3

property values. In general, a vacant

perceived environmental contamination reduced property values, increased

property becomes a problem when the

— at approximately a half-million. 8

crime, increased risk to public health

property owner abandons the basic

and welfare, and increased costs for

responsibilities of ownership, such as

The current inventory of vacant proper-

municipal governments.

routine maintenance or mortgage and

ties results from two main causes: the

property tax payments. 2 Multiple vari-

foreclosure crisis as well as long-term

Studies attempting to quantify the effect

ables can lead authorities to designate a

urban decline, depopulation, and dis-

of foreclosures on surrounding property

property as either vacant or abandoned,

investment. Many Rust Belt cities have

values find that foreclosures depressed

including the physical condition of

seen substantial population loss since

the sales prices of nearby homes by as

a structure, the amount of time that

their twentieth-century peaks as resi-

little as 0.9 percent to as much as 8.7

a property has been in that particular

dents left for suburbs or other regions.

percent. 15 Foreclosed homes may or

condition, and the relationship of the

This decline in the number of house-

may not become vacant or abandoned,

owner to the property. For example,

holds has created a tremendous gap

at which point a distressed property

in Baltimore, the city building code

between housing supply and demand.

may have a more pronounced effect on

defines residences as vacant only if they

Not only does this mismatch leave many

surrounding properties. In a study of

are uninhabitable, not if they are merely

structures vacant, but it severely weak-

Columbus, Ohio, Mikelbank finds that

unoccupied. 3

ens local housing markets, limiting the

vacant properties have a more severe

potential of market-based solutions to

impact on their immediate surround-

The absence of universal definitions of

vacancy. 9 Jobs and retail likewise subur-

ings than do foreclosures, which have

vacancy and abandonment complicates

banized in the latter half of the twentieth

a relatively modest impact but over a

efforts to assess the number of vacant

century, leaving behind former sites of

larger area. 16 Whitaker and Fitzpatrick

and abandoned properties nationally.

industrial production and commercial

also separate vacant properties from

The best aggregate sources include the

activity. The shrinking population —

foreclosures in assessing spillover

U.S. Census Bureau and the U.S. Postal

and the typically lower incomes of those

effects, finding that in the Cleveland

Service, although these are not without

who remain — are often insufficient

area, being within 500 feet of a vacant

limitations. Using these sources, the

to support commercial revitalization. 10

property depresses the sale price of a

U.S. Government Accountability Office

Former industrial centers such as Bal-

nondistressed home by 1.7 percent in

(GAO) reported in 2011 that vacant

timore, Cleveland, Detroit, and Gary,

residential units, not including those

Indiana are dotted with empty factories

used seasonally or by migrant workers,

and have thousands of foreclosures and

increased from 7 million in 2000 to 10

vacant residential properties. Sun Belt

million in 2010. 4 The Joint Center for

metropolitan areas that were booming

Housing Studies of Harvard University

just a decade ago now suffer from wide-

reported that a subset of this category,

spread foreclosures. 11 Both residential

homes vacant and not being marketed

and commercial foreclosures are at

for sale or rent, reached a record high

high risk of becoming vacant or aban-

of 7.4 million in 2012, with increases

doned. 12 Former occupants are likely

concentrated in the high-foreclosure

to vacate the property, and because

areas of the South and West. 5 Although

the costs associated with the foreclo-

vacant homes can be found throughout

sure process are high and the value

the country, they tend to be concen-

of a given property is often very low,

trated; nearly 40 percent of the nation’s

lenders or servicers may walk away. 13

vacant homes are located in just 10 per-

In Nevada, Arizona, Florida, and Geor-

cent of all census tracts. 6 More than half

gia, all states with high foreclosure rates,

of the census tracts with vacancy rates

nonseasonal vacancies increased by

of 20 percent or higher were in just 50

more than 85 percent between 2000

counties, most of them in metropolitan

and 2010. 14

areas. Wayne County in Michigan and

Cook County in Illinois, for example,

Measuring the Impacts

each have more than 200 high-vacancy

Vacant and abandoned properties have

neighborhoods. 7 In addition to the

negative spillover effects that impact

many vacant and abandoned residential

neighboring properties and, when

properties across the nation, estimates

concentrated, entire communities and

place the number of brownfields — idle

even cities. Research links foreclosed,

former industrial properties with real or vacant, and abandoned properties with 4

low-poverty areas and 2.1 percent in

shows that foreclosure has no effect

deaths, 225 injuries, and $900 million

medium-poverty areas. 17 Research also

on crime; however, after a property

in property damage result from these

suggests that the longer a property

becomes vacant, the rate of violent

fires each year. 24 Because vacancies are

remains vacant, the greater its impact

crime within 250 feet of the property is

so closely associated with arson, vandal-

on surrounding property values and

15 percent higher than the rate in the

ism, and other crimes, local ordinances

the larger the radius of this effect. 18

area between 250 and 353 feet from the

routinely label vacant or abandoned

A study of Baltimore finds that this

property. In addition, longer periods

properties as a threat to the health and

impact is confined to within 250 feet

of vacancy have a greater effect on

welfare of the community. 25

of properties that have been aban-

crime rates. 22 In a study of Philadelphia,

doned for less than 3 years; after 3

Branas, Rubin, and Guo report an asso-

Local governments bear the cost of

years, however, the impact can extend

ciation between vacant properties and

maintaining, administering, and demol-

as far as 1,500 feet (although at a

risk of assault, finding vacancy to be

ishing vacant and abandoned properties

smaller magnitude). 19

the strongest predictor among almost

as well as servicing them with police and

a dozen indicators after controlling for

fire protection and public infrastructure.

Vacant and abandoned properties are

other demographic and socioeconomic

One study calculated that the city of

widely considered to attract crime

variables. 23

Philadelphia spends more than $20 mil-

because of the “broken windows theory”

lion annually to maintain some 40,000

— that one sign of abandonment

Arson is a particular problem for vacant

vacant properties, which cost a conser-

or disorder (a broken window) will

and abandoned properties. The U.S.

vatively estimated $5 million per year in

encourage further disorder. 20 Increased

Fire Administration estimates that there

lost tax revenue to the city and school

vacancies leave fewer neighbors to monitor were 28,000 fires annually in vacant district. 26 In their 2005 Chicago study,

and combat criminal activity. Boarded

residences between 2006 and 2008, with Apgar, Duda, and Nawrocki estimate doors, unkempt lawns, and broken win-half of these spreading to the rest of

direct municipal costs ranging from

dows can signal an unsupervised safe

the building and 11 percent spreading

$430 for a foreclosed and vacated prop-

haven for criminal activity or a target

to a nearby building. The organization

erty sold at auction to $34,199 for

for theft of, for example, copper and

also estimates that 37 percent of these

a vacant property destroyed by fire,

appliances. 21 Cui’s study of Pittsburgh

fires were intentionally set and that 45

based on varying durations of vacancy,

C O N T I N U E D O N P A G E 7

City of Lansing Development Office

The “I Wish This Were A…” project in Lansing, Michigan invites community members such as the woman pictured above to reimagine use of this abandoned store.

5

Federal Resources Aid Local Responses

Local governments, nonprofits, and

residents combat vacancy and abandon-

ment with limited and often dwindling

resources. The areas hardest hit by the

high costs of vacancy and abandon-

ment tend to be those struggling most

with economic decline and falling public

revenues. Federal programs and

policies offer important aid to munici-

palities facing the challenges posed

by foreclosed and vacant properties,

including longstanding programs such

as HUD’s Community Development

Block Grant and HOME Investment

Partnerships programs. Both of these

programs offer localities considerable

flexibility in how they allocate funding;

they can be used, for example, to fund

Harvey Finkle

the purchase and rehabilitation of

A vacant lot in North Philadelphia.

vacant homes.1

In response to the foreclosure crisis, the Neighborhood Stabilization Program (NSP) was created to significantly augment local efforts to purchase, rehabilitate, demolish, and reuse foreclosed and vacant properties.2 The program originated through a $3.9 billion appropriation in the Housing and Economic Recovery Act of 2008, with another $2 billion (NSP

2) as part of the American Recovery and Reinvestment Act of 2009 and a third, $1 billion allocation (NSP 3) as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. No continuing appropriations exist for NSP, although some grantees have yet to expend their funds.

As of June 2013, the NSP programs had affected nearly 70,000 housing units around the United States: 7,836 units had been acquired, 26,595 units had been cleared or demolished, 9,893 families received homeownership assistance, and 25,119 units had been rehabilitated or newly constructed.3

The Reinvestment Fund conducted an evaluation that compared NSP Investment Clusters — areas in which NSP investment was concentrated — with three comparable markets without concentrations of NSP investments. The study found that “74% of all [NSP Investment Clusters] trended better than at least one of their comparable markets when it came to vacancy rate change between the first half of 2008 and the first half of 2012. 28% beat every comparable against which they were studied [emphasis in original].”4 A HUD-funded evaluation of NSP conducted by Abt Associates began in early 2011 and will be released in 2014.

1 John Kromer. 2002. “Vacant-Property Policy and Practice: Baltimore and Philadelphia,” Brookings Institution Center on Urban and Metropolitan Policy, 41; Justin B. Hol-

lander, Niall G. Kirkwood, and Julia L. Gold. 2010. Principles of Brownfield Regeneration: Cleanup, Design, and Reuse of Derelict Land, Washington, DC: Island Press,

12–3; U.S. Government Accountability Office. 2011. “Vacant Properties: Growing Number Increases Communities’ Costs and Challenges,” 7–8.

2 Paul A. Joice. 2011. “Neighborhood Stabilization Program,” Cityscape: A Journal of Policy Development and Research 13:1, 136–8.

3 “NSP Production Reports,” OneCPD Resource Exchange website (www.onecpd.info/resource-library/nsp-production-reports/). Accessed 23 February 2014.

4 The Reinvestment Fund. 2013. “Summary of Nationwide NSP Investment Cluster (NIC) Performance and Analysis Methodology,” 2.

6

C O N T I N U E D F R O M P A G E 5

remediation efforts, and other circum-

percent of Oklahoma City’s vacancies,

this lost revenue through tax lien sales,

stances such as crime. 27 Doors and

they account for approximately 40 per-

in others property ownership reverts

windows must be secured and often

cent of all police and fire calls. 30

to the city, which has no viable option

covered with plywood, lawns cut, and

other than demolition. 32

trash removed. Maintenance costs vary

Demolition costs can vary widely based

according to the property’s location

on several factors, including whether

Responding to Vacant and

and condition. For example, Chicago

the home is attached to occupied resi-

Abandoned Properties

officials estimated costs of $875,000 to

dences, such as a Baltimore row house

Because of the mounting costs and

board up or secure 627 properties in

that can cost $40,000 to demolish, or

difficulties that vacant and abandoned

2010, whereas Detroit officials estimat-

whether it contains asbestos or lead-

properties place on communities, gov-

ed costs of $1.4 million to do the same

based paint. GAO states that demolition

ernment, nonprofit, and community

for 6,000 properties over a period of

typically costs between $4,800 and $7,000 stakeholders are taking measures to nearly a year and a half. Lawn mowing

per property. 31 Municipalities also incur

stem and even reverse the tide of fore-

costs can add up quickly, as in the case

administrative costs as they search for

closure, vacancy, and abandonment. In

of the $25 spent on each of Detroit’s

owners, enforce codes, and oversee

some cases, the scale of the problem

45,000 city-owned lots and proper-

foreclosures, although they may recover — and the data infrastructure, code ties. 28 A 2009 study from Baltimore

some of these costs through fines or

enforcement staff, expertise, and fund-

concluded that each vacant property

fees if an owner can be identified and

ing required to tackle it — overwhelms

on a block increased annual police and

compelled to pay. Vacancies also reduce

the capacity of local governments to

fire expenditures by $1,472. 29 Accord-

local government revenues directly, be-

manage it. 33 A significant challenge for

ing to a study of vacant and abandoned

cause owners may walk away from their

most jurisdictions is to identify the

properties in Oklahoma City, commer-

tax obligations, and indirectly, because

number, location, and ownership

cial properties disproportionately affect

of their impact on nearby property

of vacant properties. 34 Information

these public safety costs. Although

values and tax assessments. Although

regarding possible vacancies is often

commercial properties make up only 3

in some instances cities can recover

spread among several agencies, and

Sources: 1965 to 1999 data from “Table 7. Annual Estimates of the Housing Inventory: 1965 to Present,” and 2000 to 2010 data from “Table 7a. Annual Estimates of the Housing Inventory.” U.S. Census Bureau. 2012. “Housing Vacancies and Homeownership: Historical Tables,” Current Population Survey/Housing Vacancy Survey. See sources for additional explanatory notes. www.census.gov/housing/hvs/data/histtabs.html. Accessed 6 February 2014.

7

records of ownership or responsibility

offsets the costs associated with vacant

that prevent and reverse decline,” 38 (see

for a property can be murky, dispersed

properties. 37

“Targeting Strategies for Neighborhood

among occupants, investors, servicers,

Development,” p. 15).

and lenders. Despite these difficulties,

The Reinvestment Fund and the National

communities need recent and reliable

Neighborhood Indicators Partnership

As local officials learn of potential vacant

data to understand the problems they

have been critical resources for localities

and abandoned properties through

face, inform decisionmaking and policy,

developing data tools and systems to

registration, neighbor complaints, visual

and tailor responses to the varying

track and address their vacant proper-

surveys, property tax delinquency, or

conditions and characteristics of the

ties. In the city of Syracuse, New York,

other means, they typically turn first

cities, neighborhoods, and properties in

an IBM Smarter Cities team developed

to code enforcement and tax liens to

question. 35 To help local officials track

a forecasting model to help identify

make owners take responsibility for the

problem properties, many jurisdictions

neighborhoods and properties at risk

property and return it to productive

have enacted vacant property registra-

of vacancy-related problems and those

use. Vacant and abandoned properties

tion ordinances that require owners to

in which an intervention would have

can quickly fall into enough disrepair

register their property and, typically,

the greatest impact. As the researchers

that they no longer comply with local

pay a fee. 36 Fees that escalate the longer

put it, “The city’s goal is to move from

building codes. Code enforcement

a property remains vacant can create

decision-making based on ‘educated

officials, who are empowered to secure

a disincentive for owners to mothball

anecdotes’ and reactive strategies aimed

properties that pose a threat to public

properties, encouraging them to return

at the most urgent need, to policy de-

health, safety, and welfare, can then is-

these properties to productive use;

velopment based on informed, holistic

sue citations and levy fines on problem

in addition, revenue from these fees

insight, and proactive interventions

properties. 39 Successful early intervention

A Fresh Face for Vacant and Abandoned Buildings

Vacant and abandoned properties are often easy to spot. The

telltale signs of neglect — overgrown lawns, sagging gutters,

and accumulating debris — can be a primary mechanism for the

contagion or spillover of negative effects of vacant and aban-

doned properties.1 Even boarding up the windows and doors,

the typical method of securing a vacant property, can turn the

property into an eyesore and act as a visual reminder of its

distress.

Several recent innovations attempt to shift these perceptions by

taking advantage of alternatives to bare plywood. Even a simple

coat of paint — an extra step and expense for those securing

properties — can improve the appearance of a boarded door

or window. The vacant property ordinance in Nashville, Tennes-

see, for example, requires that plywood be painted a color that

Christopher Toepfer

matches the building.2 More elaborate paintings, such as those

Artist Christopher Toepfer of The Neighborhood Foundation painted a

brighter face on the historic Arcade Building in Jamestown, New York.

by Christopher Toepfer of The Neighborhood Foundation, add

details such as windowpanes or flowers. Decals that appear to be functional doors and windows, such as those produced by the Michigan-based company Home Illusions, can make a house look occupied, at least from a distance.3

A company in Cleveland takes this approach a step further by replacing the unsightly plywood boards altogether. Clear plastic panels made from recycled materials offer the security of plywood and the appearance of glass with the added benefit of allowing police and other officials to look inside, thereby discouraging illegal activities.4

No research yet exists to measure the potential benefits of these cosmetic efforts. The slightest scrutiny of these facades betrays the underlying state of distress. Yet the camouflaging or replacement of plywood doors and windows might reduce the negative externalities often associated with vacant and abandoned properties, and, at the very least, make them look a little nicer.

1 John P. Harding, Eric Rosenblatt, and Vincent W. Yao. 2009. “The Contagion Effect of Foreclosed Properties,” Journal of Urban Economics 66, 164–78.

2 “Ordinance No. BL2007-40,” City of Nashville website (www.nashville.gov/mc/ordinances/term_2007_2011/bl2007_40.html). Accessed 4 February 2014.

3 Conor Dougherty. 2013. “Decorative Details Disguise Boarded-Up Houses,” The Wall Street Journal, 21 November. Accessed 4 February 2014.

4 Ibid.

8

is the best course of action because

deterioration compounds quickly over

time. One of the greatest obstacles to

timely and effective code enforcement,

according to Joseph Schilling, director

of the Metropolitan Institute at Virginia

Tech, is tracking down and holding

responsible the owners and servicers

of loans in default. 40 Real estate owned

(REO) properties pose special chal-

lenges. Mortgage servicers, which

are usually national or international

companies, must contend with the local

laws and codes that apply to a given

property. When officials can identify

the property owners and hold them

responsible, they can ensure that code

violations are rectified and mitigate the

negative impact of the property. If the

GTECH Strategies

owners are not responsive, local govern-

In partnership with community-based Operation Better Block’s Jr. Green Corps, Pittsburgh nonprofit GTECH

ments can take control of the property

Strategies engaged local youth to green this vacant lot in the Homewood neighborhood.

and pursue the appropriate course: either

rehabilitation or demolition and reuse.

or the properties themselves. These

neighbors, land banks, and nonprof-

processes, which can vary in form, must

its. 44 Among the tools available to local

Although neglected upkeep may be

balance the rights of property owners

governments to discourage irresponsible

the most visible sign of vacancy (and

with the public’s interest in promptly

investors are strict code enforcement;

one that is likely to result in a code

moving properties into responsible

rental registration and licensing; a

violation), “property tax delinquency,”

ownership and productive use. Tax liens

rental conversion fee imposed when

Alexander and Powell find, “is the

and tax-foreclosed properties can be

an owner-occupied property becomes a

most significant common denominator

auctioned, sold in bulk, or, where legal,

rental; and a requirement that all liens,

among vacant and abandoned proper-

transferred to land banks, community

taxes, and code violations be resolved

ties.” 41 When an owner stops paying

development corporations (CDCs), or

before any transfer of property. 45

property taxes, local governments

other nonprofits. In a study of tax-

initiate a tax-foreclosure process by

foreclosure practices in Flint and Detroit,

Matching Strategies to

placing a tax lien on the property. The

Dewar finds that expedited property

Market Conditions

lien is intended both to recover taxes

auctions, which require full payment

Code enforcement and tax foreclosure

owed and to prompt the owner to take

on the day of the auction and do not

can result in owners taking responsibility

responsibility for the property. Owners

give bidders an opportunity to assess

for or selling properties, public owner-

typically have the opportunity to pay off

the quality of the property beforehand,

ship of vacant properties, or public sale of

the lien, but the property reverts to the

favor investors and speculators. These

properties to new owners. Local market

municipality if the owner has walked

sales provide municipalities with im-

conditions will govern the possible reuses

away from it. Both lost property tax

mediate revenue, but they ultimately

of these properties. Governments and

revenues and reverted properties can

result in continuing disinvestment

nonprofits are using data tools to create

pose problems for local governments,

and recurring foreclosures. 42 Similarly,

neighborhood typologies based primar-

although the latter can also present an

laws that require municipalities to sell

ily on market conditions to guide reuse

opportunity to exert some control over

tax-foreclosed properties to the high-

strategies. In stronger markets, policy-

reuse of the property if the municipality est bidder favor speculators over other makers and community organizations

is prepared to do so, such as through a

types of bidders. 43 Speculative invest-

attempt to prevent vacancies in the first

land bank.

ment in vacant and abandoned properties place or keep them from spreading, get is not necessarily bad for neighborhood

responsible owners and occupants into

When a local government takes owner-

stability; these investors may well be

vacant properties as quickly as possible,

ship of a property, it typically will

responsible property owners. Dewar

and try to stabilize property values and

attempt to transfer responsibility to

argues, however, that more deliberative

reverse decline. An emerging trend

a new owner as quickly as possible

processes could result in more property

among these stakeholders is to target

through the sale of either tax liens

being taken over by owner occupants,

resources in stronger neighborhoods

9

that are at risk but are not yet dis-

the inventory of vacant homes. Neigh-

and refinancing programs, augmented

tressed. 46 In other cases, resources have

borhood marketing and commercial

by foreclosure counseling, aim to

been concentrated in low-income target

revitalization strategies can help these

keep owner occupants in their homes.

areas to reach the critical mass needed

neighborhoods retain and attract

Major initiatives in foreclosure preven-

to sustain private investment. 47 In such

residents by stimulating the demand

tion include two federal programs:

distressed neighborhoods, markets may

necessary to reoccupy vacant homes.

the Home Affordable Modification

be too weak to facilitate the reoccupancy

Some severely dilapidated vacant prop-

Program (HAMP) and the National

of vacant properties. In shrinking cities,

erties in these neighborhoods might

Foreclosure Mitigation Counseling pro-

large-scale demolition and repurposing

still require demolition, but these typi-

gram (NFMC). HAMP has processed

are needed to reduce the supply of

cally would be single lots, which would

more than 1.2 million permanent loan

housing to match demand as well as

provide opportunities for small-scale

modifications since 2009.49 HAMP par-

to deal with properties that cannot be

reuse such as side-lot adoption or com-

ticipants have high rates of redefault,

rehabilitated cost effectively for market

munity gardens.

however, reaching 46 percent in 2013

sale or rental. (For more detail on the

for modifications initiated in 2009.50 A

methodologies and applications of such

Because foreclosures are a major cause

2012 assessment of HAMP found that

efforts, see “Targeting Strategies for

of vacancy in stronger markets, limit-

although the program led to a modest

Neighborhood Development,” p. 15.)

ing them could go a long way toward

reduction in the rate of foreclosures, it

stabilizing these neighborhoods. “Not

reached only about a third of eligible

Strategies for Stronger Markets. Stronger all distressed borrowers can avoid losing households and had an adverse ef-markets offer the possibility of keeping

their homes,” explains law professor

fect on loan renegotiations outside of

owner occupants in homes at risk of

and financial services expert Patricia

the program.51 Mayer et al. find better

becoming vacant or quickly reoccupy-

A. McCoy, “but in appropriate cases

results for NFMC, concluding that the

ing homes that have already become

— where modifications can increase

program improved loan quality for par-

vacant. Foreclosure prevention programs,

investors’ return compared to foreclosure

ticipants, reducing monthly payments

rehabilitation for sale, or scattered-site

and the borrowers can afford the new

by 7.8 percent.52 By keeping owner-

rental housing are among the stronger

payments — loan modifications can be

occupants in their homes, foreclosure

market strategies that promise to reduce

a win-win for all.”48 Loan modification

prevention programs can avoid many

McAllen Public Library

The community of McAllen, Texas reclaimed this abandoned big box store as a new home for its main public library.

10

of the problems such as code violations

(the visible signs of neglect) that arise

Strategies to reoccupy vacant homes,

once a property becomes vacant.

either by owners or renters, depend on a

Vacant properties may require rehabilita-

neighborhood’s ability to retain and attract

tion before they can be reoccupied.

Healthy markets may offer private investors

residents.

sufficient economic incentives to purchase,

rehabilitate, and resell formerly vacant

properties. In other cases, public sub-

Strategies to reoccupy vacant homes,

or abandoned property exceeds its ex-

sidy or a nonprofit’s intervention may

either by owners or renters, depend on

pected market value after rehabilitation,

be able to turn a vacant home into an

a neighborhood’s ability to retain and

market-based solutions would be unlikely

owner-occupied one. Although owner

attract residents. Efforts to market a

to result in remediation. Although a

occupancy might be the most desir-

neighborhood can help stabilize hous-

vacant lot typically has less adverse impact

able reuse of foreclosed and vacated

ing markets and reduce vacancy and

on surrounding properties than a vacant

properties, investor activity, through

abandonment. The Healthy Neighbor-

or abandoned structure, demolition

both market sale and tax-foreclosure

hoods Initiative of the Greater Milwaukee

programs could also plan for what to do

auctions, has opened up scattered-site

Foundation, for example, conducted tours

with the vacant lot that remains once the

rental of single-family homes as one way

of neighborhoods that it had targeted for

structure is removed, such as turning the

of dealing with still-habitable residences

image promotion, resulting in the sale of

lot into a landscaped pedestrian pathway

located in neighborhoods with suf-

22 vacant homes to first-time homebuy-

or bike trail, a park, a parking lot, or a

ficient rental demand. Danilo Pelletiere,

ers.57 NeighborWorks America, a national

community garden.61 Research shows that

former research director of the Na-

housing and community development

the Pennsylvania Horticultural Society’s

tional Low Income Housing Coalition

nonprofit, has recognized neighborhood

Philadelphia LandCare program, which

and current HUD economist, suggests

marketing and branding as a strategy

clears and landscapes vacant lots, has

that “the new and returning households

for strengthening housing demand and

improved residents’ perception of safety,

that are needed to reduce vacancy and

attracting private investment. In 2012, the

reduced certain gun crimes, and boosted

stabilize neighborhoods are most likely

organization worked intensively with 16

property values.62 Vacant properties that

to be renters, whether by choice or from

neighborhood organizations to aggres-

have been reused as community gardens,

necessity, a trend that is already observ-

sively market neighborhoods.58

according to one study, have a positive

able.”53 CDCs would also likely have

effect on nearby property values up to

an interest in acquiring tax-foreclosed

Residential stabilization and revitaliza-

1,000 feet from the garden. The research-

properties and operating them as rentals,

tion would be aided and complemented

ers find that these gardens can have the

both to increase the stock of affordable

by commercial revitalization in areas

greatest impact in high-poverty neigh-

housing and to stabilize the neigh-

with markets strong enough to support

borhoods.63

borhoods in which they have already

it. Vibrant residential neighborhoods

invested. CDCs are likely to face signifi-

can better support neighborhood retail,

Strategies for Weak Markets and Shrinking

cant challenges, however, in managing

and abundant retail options, in turn,

Cities. In neighborhoods where hous-

scattered-site rental properties, which by

will help attract and retain residents.

ing markets are weak, where supply far

one estimate cost 25 to 30 percent more

“Rebuilding neighborhood retail

exceeds demand, and in cities that are

to manage compared with multifamily

should be planned comprehensively as

losing population, many of the strategies

properties.54 “First look” programs allow

an integral piece of the larger com-

discussed above are unlikely to result

nonprofits or a particular type of buyer,

munity that surrounds it, and it should

in owner-occupied use of once-vacant

such as neighbors, to bid on REO or

be tailored to the realities of the area,”

properties. As Mallach and Brachman

tax-foreclosed properties before other

write Beyard, Pawlukiewicz, and Bond.59

advise, “Cities such as Youngstown or

investors do. The National First Look

They argue that public-private partner-

Detroit, where 30 percent of their land

Program gives Neighborhood Stabiliza-

ships with a long-term commitment to

areas are vacant — and which continue

tion Program grantees the opportunity to

reinvestment are necessary to rebuild

to lose population — need to think

acquire properties owned by Fannie Mae

neighborhood retail.60

about land reutilization in fundamen-

and Freddie Mac before they are offered to

tally different ways than a city in which

the highest bidder.55 In some instances, lend-

Even in neighborhoods with relatively

10 percent or less of its land area is

ers or mortgage servicers may agree to rent

healthy housing markets, however, selec-

vacant, or where the city’s population

to the former owners of foreclosed homes, tive demolition may be necessary when appears to be stabilizing, such as Mil-offering some of the same benefits to the

vacant properties are severely dilapidated.

waukee or Newark.”64 Even cities with

community as foreclosure prevention.56

When the cost of rehabilitating a vacant

overall population stability or growth

11

An example of successful brownfield redevelopment, the former Pfister & Vogel leather tannery (left) is now the site of The North End apartments along the Milwaukee River in downtown Milwaukee, Wisconsin (right).

may still have neighborhoods or groups rightsizing is a controversial, “yet-purpose as of June 30, 2013.70 In Ohio,

of neighborhoods in which markets

unproved process” that raises issues of

the attorney general chose to designate

cannot support revitalization strategies

equity, among others.66 City officials

up to $75 million of the state’s share of

such as scattered-site rental housing or

cannot force residents to relocate to

the National Mortgage Settlement to

neighborhood marketing.

denser areas, and creating incentives

reimburse counties for demolition. As

to encourage residents to leave their

of February 4, 2014, Ohio counties had

Cities that have lost half or more of

homes can be difficult. Even cities with

expended over $65 million to demolish

their peak populations have a far larger rampant vacancy have residents scat-8,390 units, with approximately $41

housing supply, transportation and

tered amidst otherwise empty blocks.67

million of that total reimbursed by the

utilities infrastructure, and service area

attorney general.71 Although these fund-

than they have people to use and pay

The interventions that may be neces-

ing sources are vital for communities

for them. For decades, planners and

sary to address vacant and abandoned

struggling to keep up with demolition

politicians alike have attempted to

properties in neighborhoods with weak

demands, they are not ongoing, so alter-

grow their cities out of such problems.

markets and in shrinking cities include

natives will be needed if large numbers

Increasingly, however, they are looking

large-scale demolition and repurpos-

of properties continue to be slated for

toward “rightsizing” or “smart decline”

ing.68 Cities such as Buffalo, which in

demolition.

as a way to adjust city services and hous-

the 2000s conducted a “5 in 5” cam-

ing stock to suit smaller populations.

paign to demolish 5,000 properties in

Large swaths of vacant land require

Youngstown, Ohio and Flint, Michigan

5 years, can barely keep up with the

large-scale repurposing strategies

are two cities in which planners have

backlog of thousands of vacant prop-

such as urban agriculture, woodlands,

explicitly acknowledged the need to

erties.69 As noted above, demolition

or parks and recreation facilities.72 Such

adjust to declining populations.65 Right-

can be extremely costly. To aid state

green reuses promise the added benefit

sized cities will more efficiently allocate

and local efforts to fund large-scale

of improving stormwater management.

limited resources if, for example, resi-

demolition, the U.S. Department of

Heavy rainstorms frequently overwhelm

dents are concentrated in denser areas,

the Treasury has authorized the use

the combined sewer and stormwater in-

allowing the city to shunt infrastructure

of the Hardest Hit Fund (part of the

frastructure of many older cities, forcing

currently serving few residents. But,

Troubled Asset Relief Program) for

them to dump untreated sewage mixed

says Brent D. Ryan, professor of urban

demolition in 18 eligible states and

with stormwater into waterways at an

design and public policy at the Massa-

the District of Columbia, although

estimated rate of 850 billion gallons

chusetts Institute of Technology,

no funds had been expended for that

annually.73 Diverting rainwater to these

12

1,700, residents purchased or took re-

housing development or a green space,

sponsibility for nearly 100 nearby vacant

or whether a particular area should

lots, consolidating them with their own

pursue smart growth or smart decline.

property for their own use. Sometimes

Innovative design techniques promise

such organic use is illegal, as in the case

to expand the range of options for

of scavenging or squatting.77

reuse. As practitioners experiment with

creative new uses of formerly vacant and

Turning Liabilities

abandoned properties, researchers will

Into Assets

need to evaluate strategies and deter-

Vacant and abandoned properties present

mine which work and which do not,

daunting challenges to communities na-

which are most cost effective, and which

tionwide. Evidence shows that vacant and

are most sustainable. More research

abandoned properties drag down local

will help decisionmakers become better

economies, impede population growth,

equipped to turn problem properties

depress property values, increase crime, into assets that will stabilize and revitalize and impose heavy cost burdens on local

neighborhoods and improve residents’

governments.

quality of life.

Cities and communities are increas-

1 John Accordino and Gary T. Johnson. 2000. “Address-

ingly using data to inform the targeted

ing the Vacant and Abandoned Property Problem,”

Journal of Urban Affairs 22:3, 302–3.

deployment of limited resources and are

2 Margaret Dewar and June Manning Thomas. 2013.

addressing problem properties with a

“Introduction: The City After Abandonment,” in

Mandel Group

Margaret Dewar and June Manning Thomas, eds.,

An example of successful brownfield redevelopment, the former Pfister & Vogel leather tannery (left) is now the site of The North End apartments along the Milwaukee River in downtown range of strategies that fit local market

The City After Abandonment, Philadelphia: University of

Milwaukee, Wisconsin (right).

and demographic conditions. “What you

Pennsylvania Press, 2.

have to be able to do,” says Alan Mallach

3 U.S. Government Accountability Office. 2011. “Vacant

Properties: Growing Number Increases Communities’

repurposed properties not only addresses

of the Brookings Institution and the

Costs and Challenges,” 9.

this significant environmental problem

Center for Community Progress, “is to

4 Ibid., 12.

but also reduces air pollution and surface

come up with ways to reuse the lots so

5 Joint Center for Housing Studies. 2013. The State of the

area temperatures, lowers municipal

that they will hopefully enhance, and at a

Nation’s Housing, Harvard University, 9.

6 Elizabeth A. Duke. 2012. “Addressing Long-Term Vacant

stormwater management costs, and

minimum not detract from, the attractive-

Properties to Support Neighborhood Stabilization,”

enhances neighborhood aesthetics.74

ness of the neighborhood to homebuyers,

speech at the Federal Reserve Bank of New York, 3.

7

Land banks can be especially effective

investors, and rehabbers.”78 In some cases,

Joint Center for Housing Studies, 31–2.

8 Justin B. Hollander, Niall G. Kirkwood, and Julia L.

in banking contiguous lots for larger

such measures might spur redevelopment

Gold. 2010. Principles of Brownfield Regeneration: Cleanup,

repurposing projects (see “Countywide

and economic revitalization. In other

Design, and Reuse of Derelict Land, Washington, DC:

Lank Banks Tackle Vacancy and Blight,”

cases, it might be more appropriate

Island Press, 1, 4.

9 Alan Mallach and Jennifer S. Vey. 2011. “Recapturing

p. 18). Brownfields, which are common

to focus on managing decline in ways

Land for Economic and Fiscal Growth,” Brookings-

in former industrial centers, present op-

that improve the quality of life for those

Rockefeller Project on State and Metropolitan Innova-

tion, 1.

portunities for large-scale repurposing as who remain. “Instead of cities focusing 10 Anastasia Loukaitou-Sideris. 1997. “Inner-City Com-open green or recreational spaces, com-

so much on growing, they should really

mercial Strips: Evolution, Decay — Retrofit,” The Town

munity gardens or farms, or brightfields

focus on making themselves attractive and

Planning Review 68:1, 3–4; Daniel Hartley. 2013. “Urban

Decline in Rust-Belt Cities,” Federal Reserve Bank of

— sites for generating wind or solar

having the market respond to that,” says

Cleveland; Michael D. Beyard, Michael Pawlukiewicz,

power.75 Would-be developers of brown-

Justin Hollander, associate professor of

and Alex Bond. 2003. “Ten Principles for Rebuilding

Neighborhood Retail,” Urban Land Institute, iv.

fields must consider the costs of site

urban and environmental policy and

11 Justin Hollander, Colin Polsky, Dan Zinder, and Dan

assessment, remediation, and liability

planning at Tufts University. “If a place

Runfola. 2011. “A Spatial Analysis of Housing Vacancy

against profit expectations, which can be

becomes more desirable, it likely will lead

in the United States, 2000–2011,” Lincoln Institute

of Land Policy, ii, 4; Margaret Dewar. 2009. “The

limited by weak markets and other mac-

to further growth in the future.”79

Effects on Cities of ‘Best Practice’ in Tax Foreclosure:

roeconomic factors.76 Creative, organic,

Evidence from Detroit and Flint,” CLOSUP Working

Paper Series, No. 2, 1; Mallach and Vey, 1.

and sometimes temporary uses of vacant More research will be needed to em-12 Hye-Sung Han. 2013. “The Impact of Abandoned Proper-

land emerge when neighbors and other

power policymakers, investors, and

ties on Nearby Property Values,” Housing Policy Debate, 4;

residents act ahead of city governments,

citizens to make evidence-based deci-

Bill Barnes, Christina McFarland, and Caitlin Geary. 2011.

“The Reign of Pain: Vacant and Abandoned Properties in

land banks, or developers (see “Tempo-

sions on difficult choices, such as when

Your Downtown,” South Dakota Municipalities, 24–5.

rary Urbanism: Alternative Approaches

to rehabilitate and when to demolish,

13 Han, 4.

to Vacant Land,” p. 28). In Brightmoor,

whether to have a judicial or adminis-

14 U.S. Government Accountability Office, 14.

a Detroit neighborhood with a high va-

trative foreclosure process, whether to

15 Scott W. Frame. 2010. “Estimating the Effect of

Mortgage Foreclosures on Nearby Property Values:

cancy rate and a population of roughly

convert a brownfield to an affordable

A Critical Review of the Literature,” Economic Review:

13

Federal Reserve Bank of Atlanta 95:3, 6–7; Dan Immer-

Immergluck. 2013. “New Data on Local Vacant

First Look Program to Help Communities Stabilize

gluck and Geoff Smith. 2006. “The External Costs of

Property Registration Ordinances,” Cityscape: A Journal

Neighborhoods Hard-Hit by Foreclosure,” 1 September

Foreclosure: The Impact of Single-Family Mortgage

of Policy Development and Research 15:2, 259–66; Martin,

press release. The Neighborhood Stabilization Pro-

Foreclosures on Property Values,” Housing Policy Debate

6–43.

gram is a federal program, funded in three phases,

17:1, 57; Zhenguo Lin, Eric Rosenblatt, and Vincent

37 Joseph Schilling. 2009. “Code Enforcement and Com-

designed to aid local governments in responding to

W. Yao. 2009. “Spillover Effects of Foreclosures on

munity Stabilization: The Forgotten First Responders

the foreclosure crisis. Activities include purchase,

Neighborhood Property Values,” Journal of Real Estate,

to Vacant and Foreclosed Homes,” Albany Government

rehabilitation, demolition, and reuse of foreclosed

Finance, and Economics 38:4, 387. The lower estimate

Law Review 2, 127, 131.

and vacant properties. See Paul A. Joice. 2011. “Neigh-

is from Immergluck and Smith and the higher one is

borhood Stabilization Program,” Cityscape: A Journal of

38

from Lin, Rosenblatt, and Yao.

Sheila U. Appel, Derek Botti, James Jamison, Leslie

Policy Development and Research 13:1, 136–8.

Plant, Jing Y. Shyr, and Lav R. Varshney. Forthcom-

16 Brian A. Mikelbank. 2008. “Spatial Analysis of the

ing. “Predictive Analytics can facilitate proactive

56 Pelletiere, 133.

Impact of Vacant, Abandoned and Foreclosed Proper-

property vacancy policies for cities,” Technological

57 Greater Milwaukee Foundation. 2012. “Healthy

ties,” Federal Reserve Bank of Cleveland, 2.

Forecasting and Social Change, 2. Corrected proof avail-

Neighborhoods Initiative: 2012 Highlights,” 3.

17 Stephan Whitaker and Thomas J. Fitzpatrick IV. 2012.

able at www.sciencedirect.com/science/article/pii/

58 “NeighborWorks America Announces New Neigh-

“Deconstructing Distressed-Property Spillovers: The

S0040162513002138. Accessed 1 February 2014.

borhood Marketing and Branding Initiative to Help

Effects of Vacant, Tax-Delinquent, and Foreclosed

39 Keith H. Hirokawa and Ira Gonzalez. 2010. “Regulat-

Communities Hurt by the Housing Crisis Attract New

Properties in Housing Submarkets,” Federal Reserve

ing Vacant Property,” The Urban Lawyer 42:3, 627–37.

Investment and Residents,” 26 July 2012 press release.

Bank of Cleveland, 24.

40 Schilling, 124.

59 Beyard et al., 22.

18 Han, 21.

41 Frank S. Alexander and Leslie A. Powell. 2011.

60 Ibid., vii–viii.

19 Ibid., 20.

“Neighborhood Stabilization Strategies for Vacant

61 Alan Mallach. 2012. “Laying the Groundwork for

20 The broken window theory gained wide audience in

and Abandoned Properties,” Zoning and Planning Law

Change: Demolition, Urban Strategy, and Policy Re-

George L. Kelling and James Q. Wilson. 1982. “Bro-

Report 34:8, 3.

form,” Brookings Metropolitan Policy Program, 3–5, ken Windows: The Police and Neighborhood Safety,”

42 Dewar 2009, 1–3, 22–3.

29; Kent State University, Cleveland Urban Design

Atlantic Monthly 249:3, 29–38.

43 William Weber. 2013. “Tax Foreclosure: A Drag on

Collaborative. 2009. “Re-imagining Cleveland: Vacant

21 Ashley N. Arnio, Eric P. Baumer, and Kevin T. Wolff.

Community Vitality or a Tool for Economic Growth?,”

Land Re-use Pattern Book,” Neighborhood Progress,

2012. “The Contemporary Foreclosure Crisis and US

University of Cincinnati Law Review 81:4, 1628–30.

Inc., 14, 17, 26.

Crime Rates,” Social Science Research 41:6, 1599–1600.

62

44 Dewar 2009, 22–3.

On crime and health see Eugenia C. Garvin, Carolyn

22 Lin Cui. 2010. “Foreclosure, Vacancy and Crime,” De-

C. Cannuscio, and Charles C. Branas. 2012. “Greening

45

partment of Economics, University of Pittsburgh, 23.

Sarah Treuhaft, Kalima Rose, and Karen Black. 2010.

Vacant Lots to Reduce Violent Crime: A Randomised

“When Investors Buy Up the Neighborhood: Prevent-

23 Charles C. Branas, David Rubin, and Wensheng Guo.

Controlled Trial,” Injury Prevention 2013:19, 198; and

ing Investor Ownership from Causing Neighborhood

2012. “Vacant Properties and Violence in Neighbor-

on property values see Susan M. Wachter, Kevin C. Gil-

Decline,” PolicyLink, 6, 24, 28–9; O. Emre Ergungor

hoods,” International Scholarly Research Network: Public

len, and Carolyn R. Brown. 2008. “Green Investment

and Thomas J. Fitzpatrick IV. 2011. “Slowing Specula-

Health 2012, 5.

Strategies: A Positive Force in Cities,” Communities &

tion: A Proposal to Lessen Undesirable Housing

24 U.S. Fire Administration. 2010. “Vacant Residential

Banking 19:2, 24–7.

Transactions,” Forefront, Federal Reserve Bank of

Building Fires,” Topical Fire Report Series 11:3, 1.

63

Cleveland.

Ioan Voicu and Vicki Been. 2008. “The Effect of Com-

25 Benton C. Martin. 2010. “Vacant Property Registration

munity Gardens on Neighboring Property Values,”

46 Dale E. Thomson. 2013. “Targeting Neighborhoods,

Ordinances,” Real Estate Law Journal 39:1, 12–3.

Real Estate Economics 36:2, 243.

Stimulating Markets: The Role of Political, Institu-

64

26 Econsult Corporation, Penn Institute for Urban

tional, and Technical Factors in Three Cities,” in The

Alan Mallach and Lavea Brachman. 2010. “Shaping

Research, and May 8 Consulting. 2010. “Vacant Land

City After Abandonment, 104.

Federal Policies Toward Cities in Transition: A Policy

Management in Philadelphia: The Costs of the Cur-

Brief,” Greater Ohio Policy Center, 6.

47 George Galster, Peter Tatian, and John Accordino.

rent System and the Benefits of Reform,” Redevelop-

65

2006. “Targeting Investments for Neighborhood Revi-

Margaret Dewar, Christina Kelly, and Hunter Mor-

ment Authority of the City of Philadelphia, 9, 11.

talization,” Journal of the American Planning Association

rison. 2013. “Planning for Better, Smaller Places After

27 William C. Apgar, Mark Duda, and Rochelle Nawrocki

72:4, 458.

Population Loss: Lessons from Youngstown and Flint,”

Gorey. 2005. “The Municipal Cost of Foreclosures: A

in The City After Abandonment, 291.

48 Patricia A. McCoy. 2013. “Barriers to Foreclosure

Chicago Case Study,” Homeownership Preservation

66

Prevention During the Financial Crisis,” Arizona Law

Brent D. Ryan. 2013. “Rightsizing Shrinking Cities:

Foundation, 23.

Review 55: 3, 725.

The Urban Design Dimension,” in The City After Aban-

28 U.S. Government Accountability Office, 37–8.

donment, 268, 282–3.

49 U.S. Department of Housing and Urban Develop-

67

29 Bob Winthrop and Rebecca Herr. 2009. “Determin-

ment. 2013. “The Obama Administration’s Efforts to

Ibid., 270.

ing the CO$T of Vacancies in Baltimore,” Government

Stabilize The Housing Market and Help American

68 U.S. Environmental Protection Agency. 2013. “On the

Finance Review 25:3, 39.

Homeowners: December 2013,” 1.

Road to Reuse: Residential Demolition Bid Specifica-

30 GSBS Richman Consulting. 2013. “Addressing Vacant

50 Office of the Special Inspector General for the Trou-

tion Development Tool,” 5.

& Abandoned Buildings in Oklahoma City: Preva-

bled Asset Relief Program. 2013. “Quarterly Report to

69 Ryan, 269.

lence, Costs + Program Proposal,” 12.

Congress,” SIGTARP (July 24), 161.

70 Office of the Special Inspector General for the Trou-

31 U.S. Government Accountability Office, 39–40.

51 Sumit Agarwal, Gene Amromin, Itzhak Ben-David,

bled Asset Relief Program. 2013. “Quarterly Report to

32 Ibid., 40–1.

Souphala Chomsisengphet, Tomasz Piskorski,

Congress,” SIGTARP (October 29), 99–100.

71

33 Ibid., 69; Carolina K. Reid. 2010. “Shuttered Subdivi-

and Amit Seru. 2012. “Policy Intervention in Debt

Ohio Attorney General. 2013. “Attorney General Ex-

sions: REOs and the Challenges of Neighborhood

Renegotiation: Evidence from the Home Affordable

tends Deadline for Counties to Apply for Demolition

Stabilization in Suburban Cities,” in REO & Vacant

Modification Program,” National Bureau of Economic

Funds,” 29 August press release; Interview with Matt

Properties: Strategies for Neighborhood Stabilization, eds.

Research, ii.

Lampke, Mortgage Foreclosure Counsel, 4 February

Prabal Chakrabarti, Matthew Lambert, and Mary

52 Neil Mayer, Peter A. Tatian, Kenneth Temkin, and

2014.

Helen Petrus, Federal Reserve Banks of Boston and

Charles A. Calhoun. 2012. “Has Foreclosure Counsel-

72 Detroit Works Project. 2012. Detroit Future City: Detroit

Cleveland and the Federal Reserve Board, 23–4.

ing Helped Troubled Homeowners?: Evidence from

Strategic Framework Plan, Detroit Works Project, 93, 99,

34 Roberta F. Garber, Jung Kim, Kerry Sullivan, and Eben

the Evaluation of the National Foreclosure Mitigation

103, 116, 117.

Dowell. 2008. “$60 Million and Counting: The Cost

Counseling Program,” Metropolitan Housing and

73 Nancy Stoner, Christopher Kloss, and Crystal Ca-

of Vacant and Abandoned Properties to Eight Ohio

Communities Center, 4.

larusse. 2006. “Rooftops to Rivers: Green Strategies

Cities,” Community Research Partners, 3-3.

53 Danilo Pelletiere. 2010. “Embracing Renting to Ac-

for Controlling Stormwater and Combined Sewer

35 Kathryn L.S. Pettit and G. Thomas Kingsley. 2011.

celerate Neighborhood Recovery,” Chakrabarti et al.,

Overflows,” Natural Resources Defense Council, 1, 4.

“Framework: The New Potential for Data in Manag-

137.

74 Ibid., 10–11.

ing Neighborhood Change,” in Putting Data to Work:

54 Ivan Levi. 2009. “Stabilizing Neighborhoods Impacted

75 Hollander, Kirkwood, and Gold, 54–5.

Data-Driven Approaches to Strengthening Neighborhoods,

by Concentrated Foreclosures: Scattered-Site Rental

76 Ibid., 1–4, 16.

eds. Matt Lambert and Jane Humphreys, Board of

Housing Challenges and Opportunities,” Neighbor-

Governors of the Federal Reserve System, 27–8.

Works America, 13.

77 Dewar and Thomas. 7–10.

36 For more on vacant property registration ordinances,

55 U.S. Department of Housing and Urban Develop-

78 Interview with Alan Mallach, 13 November 2013.

see Yun Sang Lee, Patrick Terranova, and Dan

ment. 2010. “HUD Secretary Announces National

79 Interview with Justin Hollander, 12 November 2013.

14

Research Spotlight

Highlights

n To better allocate neighborhood development funds, cities are using programs Targeting

such as The Reinvestment Fund’s Market Value Analysis system to create

neighborhood typologies based on local indicators.

Strategies for

n Typology systems can target strategies such as code enforcement, rehabilita-Neighborhood

tion, and demolition to local needs as well as anticipate areas and parcels Development

at risk of future vacancy.

n The Neighborhoods in Bloom program in Richmond, Virginia successfully

Acritical component of efforts to

raised property values in distressed neighborhoods by coordinating and

combat vacancy and redevelop

concentrating government and nonprofit resources in seven neighborhoods.

cities is determining how best to al-

locate limited funds. Many managers

evolve — provided that the political

data used in each city’s MVA may vary,

and researchers agree that simply dis-

partnerships necessary to effect policy

indicators consistently used include the

tributing dollars evenly among a city’s

change are maintained — they also can

following:

neighborhoods or focusing only on its

help cities zero in on at-risk neighbor-

n Median and variability of housing sale

very worst neighborhoods will usually

hoods and prevent further problems.

prices.

yield only small improvements that do

n Housing and land vacancy.

not spur enough private investment

The Reinvestment Fund (TRF), a Phila-

n Mortgage foreclosures as a percentage

to improve overall conditions. Some

delphia-based community development

of units (or sales).

form of targeting is necessary, ranging

financial institution, has developed a

n Rate of owner occupancy.

from custom-tailored solutions at the

tool that some major cities have used

n Presence of commercial land uses.

neighborhood (or even block) level to

to help match neighborhood needs

n Share of the rental stock that receives

extensive assistance focused on just a

to investment strategies. TRF’s Market

a subsidy.

few neighborhoods.

Value Analysis (MVA) system combines

n Density.1

available local administrative data with

However, the process of targeting

relevant proprietary data to generate

The MVA system evaluates these indica-

neighborhoods within a city for ad-

a typology of neighborhoods at the

tors with cluster analysis, resulting in a

ditional investment — or for managed

census-block-group level. Although the

neighborhood typology; a 2007–2008

decline, in more extreme cases — will

always be controversial. In many cities,

failed urban renewal policies of past

decades have left a legacy of mistrust.

And every neighborhood, no matter

how blighted or sparsely populated, is

someone’s home.

History and research show that each

city’s redevelopment effort is unique,

both in terms of the relative needs

and challenges of its neighborhoods

and the political, economic, and social

pressures that influence how resources

are targeted. Despite this variation,

however, some strategies have emerged

for evaluating degrees of neighbor-

hood distress and creating categories

for how to focus response. Many cities

and organizations are developing data-

driven tools to respond to vacancy and

the community problems that vacant

properties can create (see “Vacant and

Abandoned Properties: Turning Liabili-

The approach to redeveloping a distressed property like the one above depends not only on the condition of the ties Into Assets,” p. 1). As these systems

structure itself, but also on the condition of the neighborhood in which it is located.

15

Baltimore’s Vacants to Value initiative includes strategies such as whole-block redevelopment in distressed areas like this street in the city’s Westport neighborhood.

analysis of Philadelphia, for example,

funded by a combination of govern-

crime statistics, educational data, or

categorized block groups as “regional

ment and philanthropic funds.4 These

other social and demographic factors.

choice/high value,” “steady,” “transi-

analyses have helped cities reach varied

Further, data-focused targeting systems

tional,” or “distressed.”2 In 2010, TRF

goals; in Baltimore, for example, the

can help cities not only combat existing

argued for focusing the large infusion

creation of a neighborhood typology

vacancy but also forecast areas at risk for

of Philadelphia’s Neighborhood Stabi-

underpinned the city’s Vacants to Value

future vacancy. Through the company’s

lization Program (NSP) funds on the

initiative, which has six strategies targeted

Smarter Cities Challenge, IBM helped

city’s more transitional markets or on

to neighborhood types, including using

the local government of Syracuse, New

distressed markets with steadier markets

targeted code enforcement in stronger

York, move from reactive to proactive

surrounding them. As Ira Goldstein,

markets to penalize negligent property

interventions. IBM developed a data

president for policy solutions at TRF,

owners and trigger rehabilitation while

clearinghouse to normalize data from

writes, “NSP funds will make the most

supporting larger-scale redevelopment

various city and external sources, includ-

impact when invested in areas where

in more distressed areas and selectively

ing property features, neighborhood

objective and systematic data show the

holding or demolishing properties

indicators, police call information, and

housing market is functioning reason-

where short-term redevelopment is

census data.7 The company’s team then

ably well.”3 This statement does not

unlikely.5 As of January 2014, Vacants to

used an algorithm to determine key

mean that larger distressed areas should

Value has resulted in more than 1,500

indicators that suggested that a property

not receive assistance — rather, it argues

rehabilitated properties, more than

was vacant — principally, the number

that large, one-time infusions of capital

1,100 receivership cases filed, more than

of code violations, “the full value assess-

may be more effectively applied to areas

100 demolitions, and nearly $90 million

ment of the parcel, whether the property

where other funding sources can be

in private investment.6

owner of record lives in Syracuse, and the

better leveraged.

year built.”8 These indicators were used

The MVA model, which focuses on

to generate a parcel-level score for the

In addition to Philadelphia, TRF has

housing market metrics, is only one of

vacancy risk of residential properties.

generated MVAs for Pittsburgh, Newark, many approaches to data-based target-San Antonio, Baltimore, Washington,

ing. Depending on data availability and a

IBM applied a parallel process to

Detroit, and many other cities, often

city’s needs, other systems may emphasize

determine which features predict

16

increased neighborhood-level vacancy

funds to their CDC partners, who in

less-targeted distribution approach for

rates, finding that “[m]ale unemploy-

turn also targeted the neighborhoods.11

housing funds.16

ment emerged as the most dominant

The city also provided improved services

factor. Average family size, percentage

to most of the neighborhoods, includ-

NiB’s success and eventual decline pres-

of median family income, percentage of

ing enhanced code enforcement, public ents an instructive example for other controlled substance calls to a neighbor-safety, and homeowner counseling.12

cities wishing to garner support for

hood, percentage of disturbance calls,

targeted investment. Although NiB was

and percentage of local law violation

The NiB program showed positive

a strategy proven to effect real change

codes also added significance to the

results after five years. Using an adjusted

to neighborhood conditions, it also

model.”9 With this analysis, IBM catego-

interrupted time series methodology,

proved that such change can be difficult

rized neighborhoods as “distressed,”

Galster et al. found that home values in

to sustain politically. And Richmond, of

“transitional,” “bubble,” or “stable.”

NiB neighborhoods went from being

course, is a medium-sized city; officials

Through a combination of parcel-level

35.5 percent lower than the citywide

in larger cities, such as Detroit, often

risk scores and neighborhood typolo-

average in 1999 to slightly higher than

experience much more difficulty build-

gies, Syracuse is better positioned to

average by 2004.13 Neighborhoods

ing coalitions and support for targeting

anticipate properties at risk for vacancy

throughout the city with similar chal-

efforts.

and take preventative measures.

lenges to those participating in NiB — de

facto “control” neighborhoods — did

— Keith Fudge, HUD Staff

Regardless of the specific methodology

not experience significant gains over the

employed, the city’s political context is

same time period. Galster et al. further

1 Ira Goldstein. 2011. “Market Value Analysis: A Data-

Based Approach to Understanding Urban Housing

an important factor in determining how

calculated that “‘NiB’ produced such

Markets,” in Putting Data to Work: Data-Driven Approaches

these typologies are applied. One city

a robust fiscal return on the city’s initial

to Strengthening Neighborhoods, eds. Matt Lambert and

often held up as a success story is Rich-

investment that it will likely pay for

Jane Humphreys, Board of Governors of the Federal

Reserve System, 52.

mond, Virginia and its Neighborhoods

itself in 20 years through enhanced tax

2 Ira Goldstein. 2010. “Maximizing the Impact of Federal

in Bloom (NiB) program. Because of

revenues.”14

NSP Investments Through the Strategic Use of Local

Market Data,” in REO & Vacant Properties: Strategies for

Neighborhood Stabilization, eds. Prabal Chakrabarti, Mat-

thew Lambert, and Mary Helen Petrus, Federal Reserve

Banks of Boston and Cleveland and the Federal Reserve

Data-focused targeting systems can help

Board, 69–70.

3 Ibid., 73.

cities not only combat existing vacancy

4 Goldstein 2011, 51.

5 Ellen Janes and Sandra Davis. 2011. “Vacants to Value:

but also forecast areas at risk for future

Baltimore’s Market-Based Approach to Vacant Property

Redevelopment,” in Putting Data to Work: Data-Driven

vacancy.

Approaches to Strengthening Neighborhoods, 86.

6 “Vacants to Value Code Enforcement: Track Our

a strong partnership among the city

The NiB program faded in prominence

Progress,” Baltimore Housing website (cels.baltimore-

housing.org/V2V_CodeProgress.aspx). Accessed 12

manager, the director of the Richmond

after 2004, however, because of the

February 2014.

office of the Local Initiatives Support

kind of broader political shifts and

7 Sheila U. Appel, Derek Botti, James Jamison, Leslie

Plant, Jing Y. Shyr, and Lav R. Varshney. Forthcoming.

Coalition (LISC), and community

personnel transitions that can alter

“Predictive Analytics can facilitate proactive property

development corporation (CDC) leader-

policy priorities in any city. In Rich-

vacancy policies for cities,” Technological Forecasting

ship, along with an open and inclusive

mond’s case, a structural change from a

and Social Change, 8. Corrected proof available at

www.sciencedirect.com/science/article/pii/

process that continually engaged city

council-manager system to an at-large

S0040162513002138. Accessed 1 February 2014.

council members and neighborhood

mayor, as well as the departure of

8 Ibid., 9.

leaders, the city agreed to concentrate

key city and nonprofit staff, eventu-

9 Ibid., 10.

10

federal housing funds on seven neigh-

ally led to decreased emphasis on (and

John Accordino and Fabrizio Fasulo. 2013. “Fusing

Technical and Political Rationality in Community

borhoods, most of them identified as

funding for) the program. As Accordino

Development: A Prescriptive Model of Efficiency-Based

significantly distressed according to a

and Fasulo explain, “Between 2002

Strategic Geographic Targeting,” Housing Policy Debate 23:4, 623.

typology developed by city planners.10

and 2012, the city experienced a 35%

11 Ibid., 626.

From 1999 to 2004, Richmond allocated

decline in CDBG and HOME funds.

12 Ibid.

$13.9 million, around two-thirds of its

Over the same period, its expenditures

13 Ibid., 622; George Galster, Peter Tatian, and John Ac-

Community Development Block Grant

in the Neighborhoods in Bloom areas

cordino. 2006. “Targeting Investments for Neighbor-

hood Revitalization,” Journal of the American Planning (CDBG) and HOME program funds, to

declined by 68%.”15 A lack of clear met-

Association 72:4, 463–5.

these neighborhoods; LISC earmarked

rics defining success for the program

14 Galster et al., 466–7.

about the same percentage of its hous-

and of a neighborhood exit strategy

15 Accordino and Fasulo, 627.

16

ing funds to the areas and also helped

also contributed to NiB’s decline, and

Ibid., 627–8.

build capacity by providing training

Richmond has largely returned to a

17

In Practice

Highlights

n Early land banks were often statutorily limited in their jurisdiction, but Countywide Land

over the years they have been given increasing authority to work

regionally and actively acquire properties.

Banks Tackle

n In Cuyahoga County, Ohio the land bank strategically acquires properties Vacancy and

to effect larger-scale interventions and has multiple independent sources

Blight

of funding and a well-organized inventory management database.

n The Fulton County/City of Atlanta Land Bank is an early example of a land Communities have long struggled

bank developed to work across jurisdictions; recent state legal changes

with the detrimental effects of

have given it the ability to fund itself by capturing a percentage of the

abandoned, vacant properties and

taxes generated by the properties it returns to productive use.

blight, whether the result of economic

decline, disinvestment, or, more recently,

and Atlanta (1991) followed, aided by

inspired partly by local government

the foreclosure crisis. To tackle the

state legislation and intergovernmental

leaders who realized the magnitude of

problem, many jurisdictions are turning

agreements.2 According to Frank S. Al-

their cities’ “dead inventory — specifi-

to land banks. Governmental or non-

exander, professor at Emory University

cally, properties for which there was no

profit entities authorized by state and

School of Law and a leading authority

market demand.”5 Emblematic of this

local legislation, land banks acquire

on land banks, this first generation of

approach is Michigan’s Land Bank Fast

properties that are vacant, blighted, or

land banks was “created in response to

Track Act, passed by the state legislature

abandoned and return them to produc-

growing inventories of tax-foreclosed

in 2003.6 The law created self-funding

tive use. Depending on the enabling

properties stuck in legal limbo” because

mechanisms for land banks, allowed

legislation, land banks have the author-

the taxes and penalties owed on prop-

land banks to acquire all tax-foreclosed

ity to enforce municipal codes, demolish

erties far exceeded their fair-market

properties, and empowered Michigan

vacant structures, and refurbish and sell

value, making them impossible to sell.3

land banks to demolish and rehabilitate

properties to responsible owners. Some

Thus, although conditions in the cities

properties through code enforcement.

of these entities can clear titles, extin-

varied, these early land banks shared

Before passing the Fast Track Act,

guish property taxes on abandoned

the common goal of providing local

Michigan’s legislature had streamlined

structures, or acquire and hold proper-

governments a new way of gaining ac-

the state’s tax-foreclosure process,

ties for future public use.1 Regardless

cess to the tax-foreclosed inventory and

shortening it from seven to two years.7

of their powers, land banks can be

conveying these properties back to the

Together, these laws enabled institutions

flexible and effective tools for bringing

market.

such as the Genesee County Land Bank

abandoned properties back into active

Authority to effect real change in the

uses that contribute to local property

These first generation land banks

state. The Genesee Land Bank operates

tax coffers, advance communal goals

acquired properties passively; for

various programs designed to ensure

for more green space, and increase the

example, properties that failed to sell

productive reuse of tax-foreclosed prop-

local supply of affordable homes. At

at sheriffs’ sales automatically reverted

erties in the city of Flint and Genesee

the same time, the land banks’ efforts

to them. This mechanism, however,

County, such as housing renovation, the

reduce blight, enhance public safety,

left land banks with a glut of blighted

transfer of vacant lots to adjacent property

stabilize communities, and rehabilitate

properties that were liabilities. The land

owners, a Clean and Green initiative

properties that the real estate market

banks also lacked their own financing

(in which vacant lots are converted into

cannot process efficiently. In these ways,

mechanisms, which hindered their

gardens and green space), demolition,

land banks combat both the direct and

capacity to actively acquire properties.

and brownfield redevelopment.8 The

indirect costs of vacant properties (see

Equally important, tax foreclosure laws

Cuyahoga County Land Reutilization

“Vacant and Abandoned Properties:

were largely not updated during this

Corporation, described later in this ar-

Turning Liabilities Into Assets,” p.1).

time, which meant that the land banks

ticle, is another second generation land

were left to contend with complex tax

bank empowered by state legislative

Land Banks Over the Years

liens and long waiting periods in their

reforms in Ohio.

The nation’s first land banks were

quest for property redevelopment.4

established in St. Louis, Missouri in

The third and most recent generation

1971 and Cleveland, Ohio in 1976.

In the early 2000s, states began revising

of land banks arose out of the foreclosure

Both land banks were enabled by state

their land bank and tax laws, leading

crisis, which has led to abandonment not

statutes and enacted by local ordi-

to a second generation of land banks.

only in declining industrial cities but also

nances. Louisville, Kentucky (1989)

These institutions, says Alexander, were

in metropolitan areas throughout the

18

country. These newest land banks, sup-

also allow greater independence and

of the manufacturing sector to cheaper

ported by state statutes, “give maximum

capacity to complete more robust and

markets, however, sent the city’s popula-

powers to the local governments that

strategic interventions.11

tion tumbling from its peak of 914,818

want to create a land bank authority to

in 1950 to 397,000 in 2010. By 2010, 19

acquire, maintain, and repurpose these

This article describes two countywide

percent of the city’s housing was vacant;

properties,” says Alexander.9

land banks, the Cuyahoga County Land

another 8.8 percent was classified “other

Reutilization Corporation in Ohio and

vacant,” which includes foreclosed

New legal tools have made these second

the Fulton County/City of Atlanta Land

homes not on the market.13

and third generation land banks

Bank Authority in Georgia, to illustrate

considerably more nimble than their

how land banks are helping communi-

More recently, disinvestment and

predecessors. Their potential jurisdic-

ties confront vacancy and blight. Both

vacancy have struck Cleveland’s sub-

tion has expanded geographically with

land banks are empowered by state laws

urbs as well. Between 1995 and 2007,

enhanced powers for intergovernmental

with regional authority, independent

residential foreclosures in Cuyahoga

and regional collaboration, which is

funding sources, and the power to en-

County more than quadrupled.14

especially important for rural areas that

gage in code enforcement and property

Real-estate flippers, who bought dis-

benefit from economies of scale.10 In

management.

tressed homes and then sold them at

addition, land banks can now actively

a profit after making only superficial

acquire properties — even foreclose

Cuyahoga County Land

repairs, further hurt Cleveland. In

on tax-delinquent ones — rather than

Reutilization Corporation

addition, says Kermit J. Lind, clinical

passively wait for properties to default

Most of Cleveland’s housing stock was

professor of law emeritus at Cleveland-

to them. Finally, modern land banks

built following World War I, primarily

Marshall College of Law, unscrupulous

have independent revenue sources and

for working-class families who made

lenders targeted vulnerable commu-

structures that not only grant them

their living in the area’s factories and

nities within the city, “flooding such

autonomy from local government but

mills.12 Suburbanization and the flight

areas with high-risk loans, many of

The Genesee County Land Bank Authority works to ensure productive reuse of tax-foreclosed properties in the city of Flint and Genesee County, Michigan.

19

Cuyahoga County Land Reutilization Corporation

This bungalow-style home was acquired and renovated by the Cuyahoga Land Bank.

which were predatory and fraudulent.”

state senators, members of the Cleve-

enforcement, allowing it to demolish and

By 2005, the number of foreclo-

land City Council, academics from Case

rehabilitate properties.18

sures was so high that the Cuyahoga

Western University, and nonprofit

County Court needed an average of

leaders supported the creation of a

CLB acquires properties in several ways.

two years, and up to four or five, to

regional land bank authority. In 2009,

Through a limited-time discount sales

resolve foreclosure cases.15 Foreclo-

the Cuyahoga County Land Reutiliza-

agreement, HUD sells properties val-

sures in the county peaked at more

tion Corporation, commonly known as

ued at up to $20,000 to the land bank

than 14,000 in 2007; since then, the

the Cuyahoga Land Bank (CLB), was

for $100 each.19 Private banks such

number of foreclosures, although still

authorized by state statute SB 353 as a

as Wells Fargo and Bank of America

high, has begun to decline, reach-

nonprofit corporation with a nine-person

donate foreclosed and vacant proper-

ing 11,427 in 2012.16 The foreclosure

board that includes the Cuyahoga

ties. CLB can also acquire properties by

crisis has hit low- and middle-income

County treasurer, the county executive

buying parcels’ tax lien certificates and

neighborhoods especially hard; 48.8

(or designated representative), one

through tax foreclosures.20 Strategic

percent of foreclosures in 2007 took

member of the County Council, and

acquisition of properties, particularly

place in 15 of Cuyahoga County’s 95

two Cleveland representatives. The

adjacent ones, empowers CLB to ef-

neighborhoods. Although the pace of

remaining four members are chosen by

fect larger-scale interventions, such as

foreclosures has slackened, the area

the county executive, county treasurer,

creating green space, that help stabilize

is still coping with the aftermath of

and County Council representative.

neighborhoods.

years of staggering foreclosure rates.17

An independent staff of more than

two dozen is responsible for the land

Among the problems that CLB is

An Active Land Bank

bank’s operations. SB 353 specifies

addressing is the area’s enormous

Seeking to address the foreclosure

that CLB is an active land bank, which

stock of vacant homes. To reduce

crisis and surfeit of vacant buildings, a

means that it can buy, manage, and lease

this surplus volume, demolition is a

diverse group of stakeholders, including

properties. CLB can also engage in code

critical strategy. “We have a housing

20

stock that was designed for a million

The remaining 40 percent of homes

$100,000 from the Cuyahoga County

people, and there are only about

that CLB acquires are rehabilitated by

Council’s Veterans Services Fund, CLB

365,000 people now. Aside from a

the land bank, individuals, or by partner

offers eligible veterans discounts of up

few areas, we’re still losing popula-

organizations. Some of these rehabilita-

to 20 percent of the cost of a land bank

tion. There is no indication that in 5,

tions are supported by programs that

home and covers the closing costs. As

10, or 20 years we’re going to have a

offer incentives for renovation and

with the land bank’s other programs

million people,” explains Gus Fran-

owner occupancy. As an example, in

that focus on individual homeowners,

gos, president and general counsel

April 2013, CLB partnered with the

HomeFront requires that owners keep

of CLB.21 Rehabilitation is viable only

city of Euclid and the Neighborhood

the property as their primary residence

if a market exists for those rehabili-

Housing Services of Greater Cleveland

for a minimum of 2 years and rehabili-

tated homes. Equally important, the

to launch the Advantage Plus Loan

tate the property in accordance with

county cannot afford to demolish all

Program, which provides Euclid home-

land bank standards; in addition, they

must have been employed for at least

the past 12 months.24 Finally, the land

bank works with social service agen-

The land bank works with social services cies such as sober-living programs and agencies such as sober-living programs

refugee development centers to provide

their clients with a place to live.

and refugee development centers to

These rehabilitation efforts have the

provide their clients with a place to live.

added value of restoring properties

to the tax rolls. To cast the potential

of the homes that need to be razed.

buyers with up to $10,000 in 2 percent

gains in sharp relief, consider that

Thus, the land bank demolishes

loans for rehabilitation.23 Through the

25,000 abandoned properties spread

about 60 percent of the properties

HomeFront Veterans Home Ownership

throughout 8 cities in Ohio cost their

it acquires — some 2,000 properties

Program, a pilot program launched

municipalities more than “$49 mil-

since 2009.22

in November 2013 and funded with

lion in cumulative lost property tax

C O N T I N U E D O N P A G E 2 3

Cuyahoga County Land Reutilization Corporation

Demolitions are a critical part of the Cuyahoga Land Bank’s operations given the large number of vacant and abandoned properties in the region.

21

A Land Bank for Philadelphia

An estimated 40,000 properties sit

vacant in the city of Philadelphia, and

nearly 10,000 of these properties are

publicly owned. The financial impact of

these vacancies is enormous, dimin-

ishing property values by some 6.5

percent across the city. Upkeep and

judicial procedures related to these

properties, such as maintenance,

foreclosures, inspections, and public

safety, cost the city more than $20

million annually.1 The transfer of these

properties to productive uses, however,

has been slow. On average, it takes

three years or longer to repurpose

each property for productive use.2

For years, community organizations,

local nonprofits, and businesses have

campaigned for a citywide land bank

as a tool to regain control of vacant

properties. Together they formed the

Philly Land Bank Alliance, with mem-

bers including the Greater Philadelphia

Tara Innamorato

A few of the 100 Campaign to Take Back Vacant Land supporters who turned out at Philadelphia’s City Hall Association of Realtors, the Building

for a successful hearing on the land bank bill.

Industry Association, and the Campaign

to Take Back Vacant Land (a coalition of faith-based and activist groups), among others. “Everyone agreed that the current process [for property disposition] was broken and that the land bank was a key solution to addressing that problem,” says Rick Sauer, executive director of the Philadelphia Association of Community Development Corporations, a member organization of the Philly Land Bank Alliance.3 Their efforts culminated in the unanimous approval of the Philadelphia Land Bank bill by the city council in December 2013. The bill aims to make it faster, easier, and more economical to repurpose vacant land, thereby transforming it from a liability to public asset.4

The Philadelphia Land Bank will pull together vacant properties owned by multiple city agencies, each with its own process for managing and disposing of property, and consolidate control. With fewer public agencies involved and a more streamlined process, the land bank is expected to return vacant sites to productive use within 12 to 18 months.5 In addition to taking title to publicly owned properties, the land bank may receive donations from other public agencies, acquire tax-delinquent properties, and purchase properties. The land bank is also authorized to erase municipal liens and real estate taxes on properties it holds and set prices on properties it sells.6 Thus, the land bank can sell properties at a discount if they are intended, for instance, for affordable housing or other end-uses that benefit the public good.

Although the land bank is formally a subsidiary of city government, it will function as an independent entity with its own staff and board of directors, whose members include representatives of civic associations or nonprofits that work in community development or housing. The land bank is expected to be fully operational by the end of 2014.7

1 Redevelopment Authority of the City of Philadelphia and Philadelphia Association of Community Development Corporations. 2010. “ Vacant Land Management in Philadelphia: The Costs of the Current System and the Benefits of Reform,” ii, 5.

2 Philly Land Bank Alliance. 2013. “Fixing a Broken Vacant Property Process.”

3 Interview with Rick Sauer, December 2013.

4 The land bank’s creation was made possible by the 2012 passage of state legislation that permits Pennsylvania cities, counties, boroughs, and the like to create a land bank.

5 Interview with Rick Sauer.

6 City of Philadelphia. 2013. “Philadelphia Land Bank legislation.”

7 Ibid.; Interview with Rick Sauer.

22

C O N T I N U E D F R O M P A G E 2 1

revenues.”25 The land bank’s demoli-

escrow agent for the house. The land

amount, approximately $7.45 million

tion and rehabilitation activities also

bank conducts commercial research

went directly to CLB for demolition

address the problem of home flippers:

for private clients as another source

and housing renovation.30 CLB also re-

speculators who sell properties in poor

of revenue. In addition, CLB makes

ceived funds from the mortgage fraud

condition, without bringing them up to money on demolition. As an example, settlement, a federal agreement that

code, thereby continuing the cycle of

through a 2009 agreement, Fannie Mae

returned $330 million to the state of

abandonment and tax default. Through sells vacant, blighted homes to the land Ohio.31 Attorney General Mike DeWine

its deed-in-escrow program and strate-

bank for $1 and pays the land bank at

allocated $75 million throughout Ohio

gic demolitions, the land bank blocks

least $3,500 per demolition. Although

for demolition, of which CLB received

speculators, ensures that responsible

offloading these homes for demolition

$11 million.32 Beginning in 2014, CLB

occupants take control of homes, and

seems at first to be a counterintuitive

also expects to receive a portion of the

holds home rehabilitations to proper

strategy, Frangos says that doing so

$60 million in Hardest Hit funds award-

standards.26

prevents the homes from becoming

ed to the Ohio Housing Financing

a liability for Fannie Mae. Giving the

Agency, which are earmarked for demoli-

Rehabilitation and related activities,

tion. Although the exact numbers are

and the time it takes to assess each

not fixed, Frangos expects them to be

property, mean that the land bank

in the range of $10–15 million.33

Through its deed-

holds about 1,000 to 1,500 properties at

any given time, each requiring upkeep

in-escrow program Despite the many added opportuni-

pending demolition or renovation.

ties that these federal funds support,

and strategic de-

To that end, the CLB has put together

CLB’s independent funding stream,

workforce programs that train partici-

which includes penalties and interest

molitions, the land

pants in entrepreneurial skills such

on collected delinquent taxes, is the

as estimating, and include hands-on

bank blocks specu- most critical, because it ensures the

training in drywall installation and

land bank’s continued operation. CLB

lators and ensures

construction.27 The land bank also

convinced the region’s municipalities

works with institutions such as Koino-

to allow the land bank to collect the

that responsible

nia Homes, a social service provider;

interest and penalties because fore-

its intellectually and developmentally

occupants take

closures are no longer solely an urban

disabled clients mow lawns and do other

problem; like rotten apples in a barrel,

similar maintenance.28 Through em-

control of homes.

says Frangos, foreclosures threaten to

phasis on employment opportunity,

destabilize communities throughout

the land bank accomplishes its goal

the region. Frangos notes that per-

of fixing homes while also benefiting

homes to CLB for demolition — even

suading local officials that CLB should

community residents, including recent

though Fannie Mae pays to do so —

collect these funds was challenging.

immigrants, veterans, and others.

saves Fannie Mae money it would

Although municipalities do not budget

otherwise spend on taxes, upkeep, and

for this money, the revenue is welcome.

Funding Sources

judicial procedures in housing court

Ultimately, given the current economic

CLB has multiple independent sources

and eliminates the risk of arson and

environment, officials agreed to funnel

of funding. At the operational level,

other problems. Finally, CLB also raises

that money to the land bank so that it

these sources include penalties and

money by issuing bonds, applying for

could address the widespread problems

interest on collected delinquent real

grants, making loans, and borrowing

of foreclosure and abandonment.

estate taxes that amount to $7 mil-

funds.29

lion annually. An important funding

The independence that this funding

source is the land bank’s deed-in-escrow

In recent years, the CLB has also

stream guarantees is critical to CLB’s

program, through which the land

received funds from the Neighbor-

success. “At a time when municipalities

bank sells homes for renovation. The

hood Stabilization Program (NSP).

are struggling for money, this effort —

program, which brings in about $1.5

With a consortium of governmental

if a city had to do it — would compete

million each year through low-cost

institutions including the Cuyahoga

with [funding for] streets, lights, police,

sales, stipulates that buyers rehabilitate

County Department of Development,

fire, recreation facilities,” says Frangos.

their homes according to standards set

the Cuyahoga Metropolitan Housing

“If I had to go every year to a legislature

by the land bank. While renovations are

Authority, and the City of Cleveland De-

for my annual funding, I wouldn’t know

underway, CLB holds the deed to the

partment of Community Development,

how many people I’d be able to hire,

home in escrow. Once the renovations

the land bank applied for and received

how many properties I could address.”

are complete, the homebuyer pays the

$40.8 million from NSP 2; of this

Likewise, the land bank’s organizational

23

Neighborhood Development Strategies Inc.)

(Sustainable

SNDSI

This property in Atlanta’s Pittsburgh neighborhood was held by the Fulton County/City of Atlanta Land Bank through its depository agreement program before being rehabilitated by Partnership for the Preservation of Pittsburgh.

structure — a nonprofit structured

information from all available public

local government’s and other institu-

like a for-profit organization — and its

databases; it even integrates data on

tions’ work to address the foreclosure,

independence from local government

adjacent properties so that the land

abandonment, and vacancy crisis.

enable it to function efficiently. The land

bank can search for properties on a

bank “is a single-focused entity whose

single block or a specific area. For ex-

The Fulton County/City

main purpose and main funding is

ample, the database will not only show

of Atlanta Land Bank

designed to deal with this problem….

areas with 10 adjacent vacant lots but

In contrast to the Cuyahoga County

I don’t have to go to my board every

will also indicate what, if any, activity

Land Bank, the Fulton County/City of

time I have to sell a home. We set our

exists alongside those parcels, such as

Atlanta Land Bank Authority began in

programs in motion, they are approved

construction permits or community

the early 1990s. The state of Georgia

by the board, and we rock and roll,”

investments. With that information,

enacted legislation in 1990 that autho-

says Frangos.34

land bank personnel can make strate-

rized municipalities and the counties

gic choices about which properties to

in which they were located to create

Another aspect critical to CLB’s suc-

target and for what purpose. Through

land bank authorities with the power to

cessful operations is its well-organized

the database, the land bank can also

acquire tax-delinquent properties, clear

inventory, particularly because the

advise local government officials about

their titles, and dispose of them.36 The

land bank is managing thousands

where, and how, to concentrate their

municipalities and counties involved

of properties at any one time. CLB

tax-foreclosure efforts, since the num-

would have to enter into an interlocal

maintains a database of its proper-

ber of tax-delinquent vacancies far

cooperation agreement to establish the

ties and any associated expenses or

exceeds the funding available to process

land bank. Following passage of the

code violations. This system draws

them.35 Thus, CLB is able to support the

state statute, in 1991, Fulton County

24

and the city of Atlanta created the

development corporations (CDCs).43

joint venture. During this period, LBA

Fulton County/City of Atlanta Land

A CDC would buy a tax-delinquent

holds these titles tax-free. The entities

Bank Authority (LBA) as a nonprofit

property for a below-market price and

transferring property to or receiving

corporation.37 LBA’s founding mission

convey the property’s title to LBA,

property from LBA are responsible for

was to restore tax-delinquent properties

which forgave the delinquent taxes

holding costs, which include property

that were not generating revenue to

on the property. LBA then transferred

management, maintenance, and other

active use. The interlocal cooperation

the property back to the CDC with the

administrative expenses. However, because

agreement between the city of Atlanta

requirement that it develop the prop-

hundreds of properties are enrolled in

and Fulton County outlined how the

erty according to specific requirements, the program, CDCs can take advantage two levels of government would work

such as transforming it into affordable

of economies of scale, reducing these

together. It stipulated a board of four

housing. If the CDC did not fulfill its

costs. The five-year holding period also

with two members appointed by the

obligations, the property would revert

gives participants time to arrange for

mayor of Atlanta and two appointed by

to LBA. In this way, the land bank

financing to develop the properties.

the Fulton County Board of Commis-

cleared tax liens and transferred titles

This program, the first of its kind in

sioners.38 In addition to its board, LBA

to CDCs at the rate of about 50 to 100

the nation, has enrolled more than 200

had its own staff of three that managed

properties each year.44

properties. Thirty-four properties have

operations. Its funding came from Fulton

since exited the program; once com-

County’s general fund, supplemented

LBA’s role began to evolve in response

pleted, these projects will result in 148

with HUD Community Development

to the foreclosure crisis, which hit

units of housing and a new park.49

Block Grant program funds from the

Atlanta particularly hard; the city

city of Atlanta.39 As a nonprofit, LBA

is currently second in the nation in

LBA has also begun to buy and man-

also made use of philanthropic funds

its rates of negative equity, and in 2012

age properties. Its first purchase was a

from Enterprise Community Partners,

the metropolitan area had the nation’s

28-unit foreclosed apartment building

the Ford Foundation, J.P. Morgan

seventh-highest foreclosure rate.45 Chris-

acquired using funds from the Atlanta

Chase Foundation, and Fannie Mae.40

topher Norman, LBA’s executive director, Coordinating Responsible Authority.50

explains that before the housing crash,

LBA partnered with National Church

Among its most important powers,

Atlanta’s real estate market was so ex-

Residences, a local nonprofit, to rede-

LBA had the authority to forgive back

pensive that CDCs struggled to acquire

velop the building as a 42-unit senior

taxes on properties throughout Fulton

and develop properties.46 When the

living facility. LBA has since made other

County and the city of Atlanta.41 This

housing market collapsed, some CDCs

acquisitions using NSP funds, includ-

power was critical; Georgia law required found themselves overwhelmed with un-ing 9 multifamily and 25 single-family

that the minimum bid for a property

developed or half-completed properties properties that it purchased in 2010.

A portion of the $4.4 million the land

bank received from NSP 3 is earmarked

Among its most important powers, the

toward rehabilitation, property acquisi-

tion, and the costs of holding properties.

LBA had the authority to forgive back

Other NSP funds went to hire an addi-

tional employee, bringing LBA’s total

taxes on properties throughout Fulton

staff to four.51

County and the city of Atlanta.

Improving Capacity

With State Legislation

at a tax-foreclosure sale must equal the

but without a market to absorb them

In 2011, LBA teamed with other land

cost of the property’s tax penalties. In

or financing to bring them to the next

banks in the state to create the Georgia

many cases, however, the cost of tax

stage. Making matters more difficult,

Association of Land Bank Authorities

penalties and compounded interest far

some CDCs could not afford to pay the

(GALBA). According to Norman, GAL-

exceeded the property’s market value.

property taxes on these undeveloped

BA’s president, he and other leaders

As a result, Fulton County and Atlanta

properties.47 To assist the CDCs, LBA

joined forces because they recognized

were saddled with many properties that

launched the Land Bank Depository

the need for a formal voice represent-

they could not sell and that therefore

Agreement Program in 2009 to allow

ing the state’s land banks to advocate

sat vacant, abandoned, and unused.42

nonprofits or government entities

for the passage of SB 284, the Georgia

to transfer their properties’ titles to

Land Bank Act. GALBA succeeded in

For the first two decades, the land bank

LBA for up to five years.48 For-profits

its efforts; SB 284 was signed into law in

focused on “conduit transfers” of tax-

can also do so if they participate as

July 2012. Among other changes, the

delinquent properties to community

a minority partner or through a

legislation allows for the creation of

25

regional land banks, specifies that land

four and does not have the capacity to

county’s older industrial cities. Today,

banks may borrow funds, and provides

operate efficiently or effectively in these

LBA addresses abandoned properties

land banks with a self-funding mecha-

many different realms.

resulting from the foreclosure crisis as

nism; a land bank that is instrumental

well as longer-term economic decline.55

in bringing a property back to the tax

Norman also emphasizes staying

The next challenge that LBA will ad-

rolls is allowed to capture up to 75

true to the land bank’s mission while

dress is Atlanta’s citywide vacancy rate

percent of the taxes produced by that

responding to local needs. “Don’t be

of 12.3 percent, which, according to the

property for up to 5 years. After the

afraid to evolve. Neighborhoods, real

city’s 2013 Strategic Community Invest-

five-year period, all taxes generated by

estate, and local economies are fluid.

ment Report, is concentrated in only

the property revert to the city, county,

You have to be open to changing.”54

a handful of neighborhoods.56 LBA will

or school board, as required. This

This fluidity is evident in LBA’s 20-year

be better able to resolve those problems

system, says Norman, “aligns the land

history. In the 1990s, the land bank

thanks to the greater agency, flexibility,

bank’s activity with financial reward

focused on large inventories of heav-

and self-funding afforded by the 2012

for the organization…. The more you

ily tax-delinquent properties in the

Georgia Land Bank Act.

do, the more you generate.”52 Because

these properties had not been generat-

ing tax revenue before the land bank’s

intervention, allowing the land bank to

collect this revenue takes nothing away

from cities, counties, or school boards.

Finally, these funds allow the land bank

to complete more projects while reduc-

ing the need for additional financial

assistance from the city or county.53 The

new legislation also allows intergov-

ernmental contracts among multiple

counties. A land bank can contract with

another land bank to provide a service

in which it has expertise. This type of

cooperation enables the land banks

to operate more efficiently and avoid

duplication of services.

Collaboration and Flexibility

The LBA is poised to expand its scope

of activities, largely because of the

self-funding mechanism authorized

by the new state legislation. However,

regardless of the scale of the land bank’s

projects, Norman says that collabora-

tion is key, particularly with government

partners. LBA works closely with the

city of Atlanta, including its Depart-

ment of Planning and Community

Development and its court system, as

well as with county-level commissioners.

LBA also works with members of the

development community, including

legal teams, property management

companies, and a pool of developers

that have the expertise and the capacity

to bring properties back to productive

National Church Residences

use. These partnerships are key in part

The Fulton County/City of Atlanta Land Bank Authority acquired a foreclosed apartment building and transferred ownership to nonprofit National Church Residences; it will be redeveloped as Betmar Village, because the LBA is staffed by a team of

a 42-unit senior living facility.

26

Conclusion

11 Thomas J. Fitzpatrick IV. 2009. “Understanding Ohio’s

Approval and Grant Agreement for NSP 2 Funds.”

Land Bank Legislation,” Policy Discussion Papers No.25,

31

Land banks are highly adaptable tools

“Attorney General Launches Moving Ohio Forward

Federal Reserve Bank of Cleveland, 4–5; Alexander

Demolition Grant Program to Remove Blighted

that can respond to local real estate

2011, 20–1; Mike Brady. 2012. “Evolution of Specific

Residential Structures,” Ohio Attorney General

Land Banks & Their Powers,” Cook County Land

conditions such as large swaths of tax-

website (www.ohioattorneygeneral.gov/Individuals-

Bank Advisory Committee Meeting presentation.

and-Families/Consumers/Foreclosure). Accessed 12

foreclosed properties, abandoned and

12 Kermit J. Lind. 2008. “The Perfect Storm: An Eyewit-

January 2014.

blighted housing, or foreclosed homes

ness Report from Ground Zero in Cleveland’s Neigh-

32 The $11 million was matched by $5 million from the

borhoods,” Journal of Affordable Housing & Community

in need of rehabilitation and responsible

Cuyahoga County Office of the Prosecutor and $6 mil-

Development Law 17:3, 237–58.

lion from the CLB toward demolition. Ohio Attorney

ownership. With its strategic acquisition,

13 Lind 2008, 238; W. Dennis Keating and Kermit J.

General’s Office. 2012. “Moving Ohio Forward Grant

demolition, and rehabilitation activities,

Lind. 2012. “Responding to the Mortgage Crisis:

Commission,” 4; Interview with Gus Frangos.

Three Cleveland Examples,” The Urban Lawyer 44:1,

33 Ohio Housing Finance Agency. 2013. “OHFA Expands

CLB is able to efficiently address high

1–35; U.S. Government Accountability Office. 2011.

Foreclosure Prevention Efforts to Demolish Ohio’s

numbers of foreclosed and vacant

“Vacant Properties: Growing Number Increases Com-

Vacant and Abandoned Properties,” 22 August press

munities’ Costs and Challenges,” 15–7.

properties in Cuyahoga County. CLB’s

release; Interview with Gus Frangos.

14 David Rothstein and Sapna Mehta. 2009. “Foreclosure

34 Interview with Gus Frangos.

well-organized vacant property inven-

Growth in Ohio 2009,” Policy Matters Ohio, Table 4,

35 Ibid.

tory system and independent funding

9.

36 Georgia General Assembly, “Land Bank Authorities:

15 Lind 2008, 238–43.

mechanisms have been critical to its

Georgia Code: Section 48-4-61.”

16 W. Dennis Keating. 2011. “Cuyahoga County Land Re-

success. With a longer history, LBA

37 Frank S. Alexander and Sara J. Toering. 2013.

utilization Corporation: The beginning, the present,

“Georgia Land Bank Resource Manual,” Center for

has evolved over the years in response

and beyond,” Cuyahoga Land Bank, 6.

Community Progress, 12.

17

to changing market conditions. The

Lisa Nelson. 2008. “Foreclosure Filings in Cuyahoga

38 Fulton County/City of Atlanta Land Bank Authority.

County,” A Look Behind the Numbers 1:1, Cleveland

land bank’s ability to extinguish prop-

1994. “Interlocal Cooperation Agreement Establish-

Federal Reserve Bank; Bret Chow. 2013. “Foreclosures

ing the Fulton County/City of Atlanta Land Bank

erty taxes and clear titles, as well as its

Statewide Drop Again in 2012,” Court News Ohio;

Authority, Inc.”

Interview with Gus Frangos, November 2013.

depository agreement program, is vital

39 Alexander 2005, 25, 86.

18 “Board of Directors” and “About Us,” Cuyahoga

to community-based redevelopment

Land Bank website (cuyahogalandbank.org/aboutUs.

40 Interview with Christopher Norman, November 2013.

efforts in the region. Also crucial to the

php). Accessed 9 January 2014; “SB 353” Ohio State

41 U.S. Department of Housing and Urban Develop-

Legislature website (www.legislature.state.oh.us/

ment. 2009. Revitalizing Foreclosed Properties with Land

land bank’s operations are its flexibility

BillText127/127_SB_353_EN_N.html). Accessed 24

Banks, 16.

and ability to collaborate with local

January 2014.

42 Alexander and Toering, 12.

19

government agencies, CDCs, and other

The REO sales agreement, first announced in July

43 Alexander 2011, 19.

2010, has been renewed in November 2013 through

44

stakeholders. Both entities demonstrate

U.S. Department of Housing and Urban Development

September 2014. Cuyahoga Land Bank. 2013. “HUD,

2009, 17.

how state legislation and tax-foreclosure

Cuyahoga Land Bank Renew Ground Breaking Agree-

ment,” 26 November press release; U.S. Department

45 Zillow Real Estate Research. 2013. “Negative Equity

reforms can empower land banks to

of Housing and Urban Development. 2010. “HUD

Report: Third Quarter 2013,” 3; RealtyTrac. 2013.

transform liabilities into resources for

Expands Neighborhood Stabilization Program in

“1.8 Million U.S. Properties with Foreclosure Filings

Cuyahoga County,” 2 July press release.

in 2012.”

the public good. With the support of

20 Keating, 5.

46 Interview with Christopher Norman.

state legislation (14 states have authoriz-

21 Interview with Gus Frangos.

47 Alexander 2011, 17, 36.

ing statutes), land banks are frequently

22 Keating, 7; Cuyahoga Land Bank. 2013. “Cuyahoga

48 Alexander and Toering, 29.

being founded; Alexander estimates

Land Bank Renovates 700th Property; Demolishes

49 Interview with Christopher Norman, January 2014.

2000th Property,” 16 September press release; Inter-

50

that about 125 to 150 land banks are

The Atlanta Coordinating Responsible Authority is

view with Gus Frangos.

a nonprofit corporation designated by the city of

currently operating nationwide.57

23 “Cuyahoga Land Bank Launches Advantage Plus Loan

Atlanta to administer Title XX funds. “Boards and

Program in Euclid,” Cuyahoga Land Bank website

Commissions,” City of Atlanta website (www.atlantaga.

(blog.cuyahogalandbank.org/2013/04/cuyahoga-land-

gov/index.aspx?page=112). Accessed 10 January 2014.

1 Frank S. Alexander. 2005. “Land Bank Authorities: A

bank-launches-advantage-plus-loan-program-in-eu-

51

Guide for the Creation and Operation of Local Land

Interview with Christopher Norman; Christopher

clid/). Accessed 10 December 2013.

Banks,” Local Initiatives Support Corporation, 2, 22–7.

Norman. 2013. “Land Banking: Pathways Toward

24 Cuyahoga Land Bank. 2013. “Helping veterans

Sustainable Urban, Suburban and Rural Land Recla-

2 Ibid., 5–7.

become homeowners,” and “Cuyahoga Land Bank

mation,” New Partners for Smart Growth Conference

3 Interview with Frank Alexander, December 2013.

Launches Homefront Veterans Home Ownership

presentation.

4 Frank S. Alexander. 2011. Land Banks and Land Bank-

Program,” 13 November Cuyahoga Land Bank blog.

52 Interview with Christopher Norman.

ing, Center for Community Progress, 19–20.

Accessed 10 December 2013.

53 Ibid.

5 Interview with Frank Alexander.

25 Community Research Partners and ReBuild Ohio.

54 Ibid.

6 “Land Bank Fast Track Act,” Michigan State

2008. “$60 Million and Counting: The cost of vacant

55 Ibid.; Interview with Frank Alexander.

Legislature website (www.legislature.mi.gov/

and abandoned properties to eight Ohio cities,” i.

56

(S(eqdtgdfvjluvnz55szc4rxjh))/mileg.aspx?page=Get

26 Interview with Gus Frangos.

APD Solutions. 2013. “Creating Linkages and Elimi-

Object&objectname=mcl-Act-258-of-2003). Accessed 8

nating Barriers: The Strategic Community Investment

27 Cuyahoga Land Bank. 2012. “Career Development

January 2014.

(SCI) Report,” 7.

and Placement Strategies, Inc.,” 5 October Cuyahoga

57

7 Alexander 2011, 21; Daniel T. Kildee. 2006. “Rethink-

Land Bank blog. Accessed 10 December 2013.

Interview with Frank Alexander; CFED. 2012.

ing Urban Land.”

“Resource Guide: Foreclosure Prevention and Protec-

28 Cuyahoga Land Bank. 2013. “Cuyahoga Land Bank

tions,” Assets & Opportunity Scorecard, 4 –7; Center

8 “What We Do,” Genesee County Land Bank website

celebrates Disabilities Awareness Month; Conclusion

for Community Progress. 2012. “Pennsylvania Gains

(www.thelandbank.org/whatwedo.asp). Accessed 9

of a 2nd year of partnering with Koinonia Homes, Inc.

New Tool to Fight Vacant Property,” 25 October press

December 2013.

to maintain properties,” 9 October press release.

release.

9 Interview with Frank Alexander.

29 Interview with Gus Frangos.

10 Ibid.

30 Cuyahoga Land Reutilization Corporation. 2010. “Funding

27

In Practice

Highlights

n Temporary uses can vary widely in purpose and duration; their viability Temporary Urban-depends on local market and regulatory conditions in addition to the work

ism: Alternative

of entrepreneurial project initiators and their supporters.

n Common temporary projects include community gardens and other green

Approaches to

spaces, special events such as festivals or concert series, and stores or

Vacant Land

restaurants.

n The experimentation and reversibility afforded by temporary use practices For three days in May 2013, a mile-long

can encourage a multilayered approach to land use and increase the

stretch of empty riverfront land in

likelihood that a vacant space will eventually find permanent use.

Flint, Michigan underwent a remark-

able transformation. Known locally as

“Chevy in the Hole” after the now-

Art Project. The organization’s program

of planning strategies being adopted

razed Chevrolet manufacturing plant

director, Jerome Chou, says that the

nationwide.3 The recent economic crisis

that once occupied the site, the vacant

event encouraged residents to take an

has left many U.S. cities, particularly

lot became a frenzy of activity. A host

interest in their city’s future, challeng-

those in the Rust Belt and Sun Belt,

of activities — birding tours, gospel

ing them “to reimagine the city” and

struggling with long-term economic

choir performances, dance parties, and

view abandoned parcels as opportunities

decline, widespread foreclosures, and

even a fully functional sauna1 — drew

rather than as eyesores.2 The low-cost,

stalled development, resulting in an

visitors to Free City, a public arts festival

temporary nature of this initiative

abundance of costly and unproductive

organized by the nonprofit Flint Public

epitomizes a broader shift in the types

vacant land. Too readily associated with

Larkin Square, in Buffalo, New York, hosts food truck events, an author series, and the “Live at Larkin” concert series, transforming a derelict industrial area into a vibrant space.

28

conditions of blight and urban decline

most common temporary use practices,

however, that not all vacant land will

(see “Vacant and Abandoned Proper-

and examines the positive and negative

be suitable for these temporary uses; in

ties: Turning Liabilities Into Assets,”

effects of “temporary urbanism.”

fact, the preferences of temporary users

p. 1), high vacancy rates have led

often mirror those of the conventional

organizations such as the Flint Public

Just How Temporary

real estate market. They state that “if

Art Project to consider innovative,

Is Temporary?

the investment required to renovate a

temporary approaches that mobilize

Just as temporary land use projects are

space is too high, if it lies too far off the

limited resources to bring land back

seeing widespread growth throughout

beaten track, or if suitable users are un-

into productive use.

the country, temporary urbanism has

available, it will remain unused.”6 This

become the subject of an expanding

point is particularly relevant for space

Whether realized as an attempt to

body of academic literature. In the

in America’s Rust Belt, where long-term

generate public and political awareness,

context of the dynamic nature of the

structural decline has caused high va-

a grassroots initiative pioneered by local

contemporary city, researchers must

cancy rates. In these “shrinking cities,”

groups to improve their own neighbor-

first answer a fundamental question:

large numbers of younger, more active

hoods, or a larger-scale municipal or

What actually constitutes a temporary

residents have emigrated, removing a

private investment intended to gener-

intervention? In other words, just how

potential source of both initiators and

ate profit on otherwise economically

temporary is “temporary”? Although

consumers of such temporary uses.

redundant land, both the intentions

the term has multiple definitions,

and strategies that fall under the um-

Bishop and Williams conclude that

This element of agency — the actors

brella concept of “temporary uses” can

the concept of “temporary” cannot be

capable of initiating projects — is what

range widely. This article identifies the

“based on the nature of use, or whether

the Cleveland Urban Design Collabora-

key factors involved in creating these

rent is paid, or whether a use is formal

tive identifies as the second key element

temporary uses, reviews some of the

or informal, or even the scale, longevity

of temporary use projects. Initiators of

or endurance of a temporary use, but

early temporary use ventures had “little

rather the intention of the user, devel-

in the way of financial resources, but…

oper, or planners that the use should

a large amount of social and cultural

be temporary.”4 Such a broad definition

capital, a high degree of energy and

is itself a revealing commentary on this

commitment, and great willingness to

emerging field of planning because it

improvise.”7 As such, they tended to be

includes interventions that are as short

newcomers to an area rather than long-

as a few hours or as long as a number

time residents. The Cleveland Urban

of years, those that are both legal and

Design Collective identifies two main

illegal, and those that are community

types of initiators: young, well-educated

driven, state sanctioned, or privately

entrepreneurs, drawn by the low entry

financed.

thresholds and the potential to estab-

lish conditions of economic, social, or

As part of its ongoing research proj-

cultural change, and those who have a

ect, Pop Up City, the Cleveland Urban

regular income and pursue temporary

Design Collaborative has identified

use projects as more of a hobby, often

a number of required elements for

founded upon a philanthropic or com-

producing temporary use projects.

munity ideal.8 Both groups, however,

First, the projects require a suitable

share a tendency to work rapidly

site, usually vacant land, from which

and flexibly; to apply an experimental,

to operate. The type of space used can

largely improvised approach to prob-

vary — possibilities include anything

lem solving; to operate at low cost; and

from former industrial areas, railroad

to tolerate an element of temporal

stations, waterfront areas, and unused

insecurity, whether in the form of a

commercial zones to vacant residential

short-term rental agreement, the ab-

neighborhoods and public institutions

sence of a rental agreement altogether,

— but the desired purpose for the

or illegal use.9

temporary project will affect the choice

of site.5 In turn, a site’s former use is

In addition to the project initiators, the

often thematically incorporated into

success of a temporary use project

its new use and marketed as an asset.

depends on several other types of sup-

Oswalt, Overmeyer and Misselwitz note, porters. The first of these are the “agents,”

29

the group responsible for creating

Municipal policymakers and admin-

the owner of the vacant site also has

the framework conditions required to

istrators have another important,

significant power to support or discour-

initially launch a temporary use, such

although more passive, function; every

age temporary use projects because “it

as lease contracts, official permits,

built structure, whether permanent or

is a prerequisite of every temporary use

organizational structures, and political

temporary, is subject to government

that it be tolerated — either explicitly

and administrative support. Their role

regulation and licensing requirements.

or implicitly — or contractually permit-

is “to function as a bridge,” mediating

Michael Southworth, a professor in

ted by the owner.”14 Because landowners

between the entrepreneurs and admin-

both the Department of City and

are ultimately responsible for the safety

istrators such as local authorities and

Regional Planning and the Department

and security of their property, the risk

the landowners.10 Although many of the

of Landscape Architecture and Envi-

involved in making their property avail-

agents involved in the earliest tempo-

ronmental Planning at the University

able to others often deters them from

rary use projects did so informally, in

of California at Berkeley, notes, “[T]he

allowing these temporary uses.

recent years municipal policymakers,

regulatory environment can play a major

politicians, and members of the private

role in stimulating or deterring uses.

Finally, a project’s viability also depends

sector have also adopted temporary use

City regulation that controls activities

on its customers — that is, the public. A

practices, offering additional formal

such as vending and the outdoor sale

“pop-up” project must be able to offer

channels through which agents can op-

of food or outdoor music, art and

a product that can generate enough

erate. To some extent, this change has

cultural events can be crucial in sup-

popular appeal to a certain popula-

created an opportunity for a new class

porting street life.”12 Southworth cites

tion — whether aimed at a broad and

of professionals who can offer stake-

Portland as an example of a city whose

inclusive market, or a particular niche

holders their expertise in operations

progressive policies on food vending

group — such that the temporary initia-

management, planning, marketing,

have transformed vacant spaces into

tive generates enough “critical mass” to

obtaining funding, securing permits,

“gastronomic magnets that attract

be sustainable, even if over only a short-

and resolving legal issues.11

crowds throughout the day.”13 Similarly,

time scale. Media outlets are an important

Mark Hogan AIA, LEED BD+C

These formerly vacant lots were converted into an urban farm by the Massachusetts Avenue Project, which has reclaimed over an acre of vacant land in residential neighborhoods on Buffalo’s West Side.

30

part of generating this excitement, with

social networking applications such as

Capitalizing on social relationships

Facebook and Twitter being used to

rapidly propagate an otherwise “exclu-

between different groups and individuals

sive” pop-up project to a broad or niche

can be an important tool for fostering

audience. In instances where the tem-

porary use activities aim to ameliorate

clusters of temporary use projects in a

social and cultural inequality, media

coverage is also essential for generating

certain area.

wider awareness and garnering political

support.15

dating back to movements such as the

Belt cities.26 For example, in October

Social networks support temporary use

Green Guerrillas in 1970s New York.22

2013, a Detroit organization called

projects in another sense. “As a rule,”

Such projects continue to be prevalent

Hantz Farms was awarded the right to

state Oswalt, Overmeyer and Misselwitz, in many cities and are often operated purchase 1,500 parcels of land totaling

“temporary uses do not arise in isola-

through centralized efforts and organi-

140 acres to create an urban farm and

tion, but in clusters.”16 Capitalizing on

zations. In Philadelphia, for example,

an adjoining forest, Hantz Wood-

social relationships between different

the Pennsylvania Horticultural Society

lands. The project will involve razing

groups and individuals — in particular,

oversees citywide attempts to map,

50 derelict structures, cleaning up

the sharing of knowledge, strategies,

transform, and maintain vacant land as

accumulated garbage, and planting

and experience — can be an important

green space. Between 1999 and 2008,

15,000 trees.27 Such initiatives, however,

tool for fostering clusters of temporary

the society was responsible for reactivating

have proven controversial. Although

use projects in a certain area. In ad-

4,436 individual vacant lots.23 Techno-

the development of green space has

dition, networking can engender new

logical advances have encouraged this

historically been heralded as an instru-

forms of cooperation; an area might de-

coordinated approach to greening

ment of social justice, particularly in

velop a communal sense of identity, or

vacant land; an online land mapping

marginalized neighborhoods that often

members can benefit from economies

project such as Grounded in Philly,

lack adequate open space,28 local com-

of scale when negotiating permits.17

founded in late 2012, provides an open-

munity activists and grassroots urban

source tool that allows the city’s vacant

farmers have accused the Hantz Wood-

The complexity of the different actors

space and active gardens to be mapped

lands project of serving the interests of

and contexts is part of the reason why

in real time. In addition, Grounded in

the wealthy, increasing land values by

such a wide variety of temporary use

Philly functions as an online commu-

removing a large acreage of potential

projects are currently being adopted

nity, offering users a platform through

housing stock.29

across the country. All, however, are

which they can exchange information

united by a sense of flexibility in the ac-

about landowners and coordinate their

A second common strategy for develop-

tivation of a vacant space, whether the

regeneration efforts.24 Jeremy Németh

ing temporary use projects centers on

projects may be strategically designed

and Joern Langhorst observe that

generating a special event or experience.

as a catalyst for future development of

although using individual lots as green

In Buffalo’s Larkinville neighborhood,

a different (potentially unspecified)

space can provide valuable infrastruc-

the site of a long-demolished soap manu-

nature, functioning as “secondary or

tural functions, such as stormwater

facturing plant now houses a verdant

provisional, a stand-in or substitute for

filtration, their “efficiency increases

square that hosts the annual Live at

the preferred permanent option,” or

exponentially if they are engaged as a

Larkin series of summer concerts.

deliberately realized as urban experiments

system of vacant lots.”25

The increased pedestrian traffic and

without concern for permanency.18, 19

vibrancy in the area has spurred the

The types of green space being activated

emergence of related activities at

Common Strategies

have expanded over time. Although the

the site; for example, craftspeople

for Vacant Space

transformation of a vacant plot into a

sell their wares to local residents and

Among the many potential projects

community garden remains a common

workers on their lunch breaks.30 Other

that meet the definition of temporary

practice, a growing trend has been to

strategies that focus on creating a place-

urbanism, from roller discos to honey

turn vacant space into urban farmland

based experience are being employed

farms, a number of practices are regularly

or even forests. While such conver-

elsewhere. The Flint Public Art Project

used to temporarily reactivate under-

sions have been successful at smaller

has pioneered the Stone Street Resi-

utilized space.20, 21 Urban activists have

scales, they also constitute a potentially

dency program, which provides free or

been transforming vacant land into

valuable strategy to transform the large

low-cost housing to artists and design-

community green space for decades,

areas of vacant land common to Rust

ers interested in pursuing short-term

31

Joseph Perez-Green

Recycled shipping containers house food and retail vendors as part of Proxy, a two-block temporary use project in San Francisco.

projects in the city.31 The program is

Temporary uses are also growing in the

PROXY, an initiative by an architecture

part of a larger strategy to both create

retail sector, particularly in the form of

firm in San Francisco, features a whole

vibrant cultural spaces in Flint and gen-

pop-up shops. Some critics have argued

village of pop-up stores run by local

erate public awareness and involvement

that the grassroots, community-develop-

businesses, including a coffee shop, a

in the city’s future development. Sports,

ment origins of the pop-up shop have

pizzeria, an ice cream stall, and a beer

particularly street sports, also feature

been coopted by the marketing depart-

garden.35 The ability to quickly assemble

frequently in temporary use projects.

ments of multinational firms, — citing,

and dissemble retail spaces also gives

In Brooklyn’s Williamsburg neigh-

for example, a Toys “R” Us pop-up

businesses the flexibility to respond

borhood, the site of a proposed 3.3

that opened in 2011 in Brooklyn’s

to seasonal fluctuations in demand.

million-square-foot mixed-use devel-

Greenpoint neighborhood. Neverthe-

In Memphis and Cleveland, vacant

opment has been transformed into

less, the pop-up shop remains popular

lots were transformed into a winter

the Brooklyn Bike Park, a year-round

among municipalities and nonprofits as

craft market and a winter wonderland,

park for BMX and mountain bike rid-

a strategy for economic regeneration.33

respectively.36 The latter incorporated a

ers that is free for local children to use.

Németh and Langhorst argue that the

snow and ice installation, a winter forest,

As with other projects of this nature,

relatively low capital requirements of

an ice skating rink, snowboard ramps,

the space has attracted additional

these temporary practices on vacant

and a snowsuit fashion show in addi-

temporary uses, such as food and drink

land can present business opportunities

tion to shops, all of which were part of a

vendors, which has encouraged the

to those without the means to formally

strategy to create a marketable product

park’s developers to incorporate a fuller

lease permanent space.34 Such projects

and generate vibrancy. Incorporating

program of community events and park

can vary widely in scale, operating from

such multiuse designs into temporary

space once the site has been fully built

the backs of vehicles, vacant storefronts,

projects is common, as is the tendency

out.32

single plots, and even whole streets.

for a single space to host multiple events

32

over time. For example, Eco-interstice,

art, a kiosk with information on train

when temporary users undertake the

a community garden in the Quartier

departures and arrivals, and additional

potentially costly, time-consuming job

Saint-Blaise of Paris, is alternatively used

greenery.40 Prema Katari Gupta, UCD’s

of maintaining the land.46 Moreover, in

as a “marketplace, debating chamber,

director of planning and economic

instances where the land ultimately is

classroom, allotment, park, exhibition

development, says, “[T]hat’s the beauty returned to productive use, temporary space, distribution center, theater, of-of a lighter, quicker, cheaper project…

uses can be a relatively low-risk strategy

fice, salon, and dining room.”37

it’s flexible and allows for layering and

for generating otherwise unattainable

a gradual transition to permanence.”41

long-term revenue.47 The local com-

Temporary Use,

munity can also benefit from temporary

Lasting Benefits

Evidence suggests that the temporary

use projects. In addition to reducing

Temporary use, when successful, can

reactivation of underutilized land leads

the negative externalities caused

rapidly and efficiently bring underuti-

to eventual permanent use, another

by vacant land, temporary use projects

lized land into productive use, thereby

potential benefit of this planning strat-

typically empower marginalized com-

reducing or removing many undesir-

egy. Temporary uses, particularly when

munities by “instil[ling] in them a

able externalities. As low-cost and

clustered in a specific locality, can alter

sense of participation in the creation

low-risk strategies, temporary projects

existing identities for neighborhoods —

of a ‘place.’”48 By encouraging public

can also respond quickly to changing

or even create entirely new ones — that

participation in the planning stages of

conditions and demands — a particu-

are attractive to investors.42 As Ethan

temporary use projects, initiators can

lar advantage in many cities, where

Kent, vice president of Projects for

catalyze communities around com-

“political and economic conditions are

Public Spaces, states, “[S]mall changes,

mon goals that serve local needs and

uncertain, and cause a reluctance to en-

sometimes built around minimum

create tangible outcomes.49

ter potential long-term commitments,

design and extensive programming,

responsibilities, and liabilities.”38 For

can spur momentum for larger, more

Potential Downfalls and

city administrators facing tight budgets,

permanent ones.”43 In many cases, this

Emerging Solutions

temporary use projects can be a cost-

outcome results from experimenta-

Although advocates have been quick to

effective strategy for dealing with vacant

tion with an alternative land use (or

praise temporary urbanism, a number

land that yields rapid results.39

collection of uses) that defies those

of academics have warned of potential

established under “traditional regula-

drawbacks to the strategy. In places

The experimentation and reversibil-

tory and planning systems…based

where temporary interventions have

ity afforded by such temporary use

on the perceived primacy of stable

successfully empowered marginalized

practices can encourage a multilay-

and certain environments for invest-

individuals and turned urban blight

into a neighborhood asset, any attempt

by a landowner or government authori-

Evidence suggests that the temporary

ties to reassert control over the site will

likely be met with fierce resistance. In

reactivation of underutilized land leads

Philadelphia’s Point Breeze neighbor-

hood, for example, a group of residents

to eventual permanent use.

invested approximately $20,000 of com-

munity money as well as considerable

ered approach to land use. University

ment.”44 Németh and Langhorst argue

time and effort to transform an empty

City District (UCD), a neighborhood

that although cities may need time to

plot into a small neighborhood park

revitalization organization in Philadel-

fully adopt temporary strategies as a

featuring planted trees, picnic benches,

phia, embraces this tactic with its 2011

primary tool for generating economic

sidewalks, and fencing.50 However,

project, the Porch. Built on a parking

growth, rapidly shrinking cities such as

when the Philadelphia Redevelopment

strip next to the city’s Amtrak station,

Detroit and Youngstown, Ohio might

Authority (PRA), the legal owner of the

the Porch is a heavily programmed

be more willing to experiment with

property, became aware of the changes,

plaza featuring colorful patio chairs

such nontraditional approaches to

it threatened the group with legal ac-

and artist-designed planters. One key

relieve the problems caused by wide-

tion unless the park was restored to its

feature of the Porch has been regular

spread vacancies.45

original state.51 In removing an obvi-

monitoring of the number of visitors,

ous neighborhood asset, landowners

favored uses, walking patterns, and

Temporary use projects can also benefit

and developers risk exacerbating the

other elements as a method of inform-

other stakeholders. Although the reve-

marginalization of the community and

ing its future design. Based on the data

nues generated through temporary use

discourage residents from engaging

collected, the space has been reshaped

projects are unlikely to be significant,

in discourse about the development

since its opening to include more public

the owners of vacant land can benefit

of their neighborhood.52

33

As Németh and Langhorst state,

flexible and adaptive urbanism, where

for vacant land,” Cities (dx.doi.org/10.1016/j.cit-

ies.2013.04.007), 2. Accessed 29 January 2014.

“[I]f temporary uses are suspended

the city is becoming more responsive

19 Fran Tonkiss. 2013. “Austerity Urbanism and the

in favour of more profitable endeav-

to new needs, demands, and prefer-

Makeshift City,” City: Analysis of Urban Trends, Culture, ours… [these] can become a liability in

ences of its users.”57 The answers to a

Theory, Policy, Action 17:3, 313.

20 “Electric Roller DiscoTech,” Cleveland Urban Design

political terms of the displaced activities

number of research questions in

Collaborative website (www.cudc.kent.edu/pop_up_

[of] the surrounding communities.”53

this emerging area of urban planning

city/electric_roller_discotech/index.html). Accessed

will therefore prove particularly valu-

29 January 2014.

21 David Lepeska. 2012. “The Rise of the Temporary

The risk of negative press or legal

able: What measures can governments

City,” 1 May The Atlantic Cities blog. Accessed 29 Janu-

complications from such events may

take to encourage the development of

ary 2014.

discourage developers from permit-

temporary use projects? What types of

22 Cathy Lang Ho. 2010. “Hold This Site,” 24 May Archi-

tect blog. Accessed 29 January 2014.

ting temporary uses in the first place.

temporary projects have the greatest eco-

23 Charles C. Branas, Rose A. Cheney, John M. MacDon-

A number of city governments are ex-

nomic, social, and cultural effects on

ald, Vicky W. Tam, Tara D. Jackson, and Thomas R.

perimenting with policies that attempt

their communities? How can planners

Ten Have. 2011. “A Difference-in-Differences Analysis

of Health, Safety, and Greening Vacant Urban Space,”

to reverse this trend. For example, San

respond to legal and liability issues to

American Journal of Epidemiology 174:11, 1300.

Francisco prepared an ordinance in

ensure productive and socially progres-

24 Adrien Schless-Meier. 2013. “K(no)w Vacancy: From

2010 called the Green Development

sive temporary uses?58 And, finally, how

NY to PA, Urban Land Maps Support Reclaiming

Abandoned Lots,” 26 July Local Eats blog. Accessed 29

Agreement, which ensures the rights

do the underlying causes of vacancy

January 2014.

of developers to proceed with preap-

— whether foreclosure or long-term

25 Németh and Langhorst, 7.

proved development plans provided

structural decline — affect the success

26 Sean Burkholder. 2012. “The New Ecology of Vacancy:

Rethinking Land Use in Shrinking Cities,” Sustain-

that the land is made available for public

of a particular project? As case study

ability 4:6, 1166.

use in the interim. This ordinance

evidence and research begin to answer

27 Sarah Goodyear. 2013. “A 140-Acre Forest Is About to

replaces a more cumbersome process

these questions, more light will be shed

Materialize in the Middle of Detroit,” 25 October The

Atlantic Cities blog. Accessed 29 January 2014.

in which developers were required to

on the ways in which temporary uses of

28 Németh and Langhorst, 7.

renew entitlements every 1 to 3 years,

vacant space in both the Rust Belt and

29 Goodyear 2013.

which put them at risk of modification.54

the Sun Belt can help create cities that

30 JoAnn Greco. 2012. “From Pop-Up to Permanent,”

Other cities are following suit; in Buf-

are lively, economically productive, and

Planning 78:9, 15–6.

31 Flint Public Art Project website (www.flintpublicart-

falo, New York a new zoning code

more equitable.

project.com/). Accessed 29 January 2014.

called the Green Code is specifically

32 Sarah Goodyear. 2013. “This Might Be The Most

designed to encourage creative uses for

— Rob Wellburn, HUD Extern

Impressive Pop-Up Park We’ve Ever Seen,” 19 July The

Atlantic Cities blog. Accessed 29 January 2014.

vacant parcels, such as temporary urban

33 Allison Arieff. 2011. “Temporary Is the New Perma-

gardens, movie screenings, and bocce

1 Mark Byrnes. 2013. “When You Think of Flint, Michi-

nent,” 16 September The Atlantic Cities blog. Accessed

gan, Think of…Experimental Public Art?” 18 June The

courts.55 Chris Hawley, from Buffalo’s

29 January 2014.

Atlantic Cities blog. Accessed 29 January 2014.

34

Office of Strategic Planning, states that

Németh and Langhorst, 6.

2 “Flint Public Art Project: About.” Flint Public Art

35 Arieff.

“given the current economic climate,

Project website (www.flintpublicartproject.com/about.

html). Accessed 29 January 2014.

36 Greco, 18.

we see these [projects] as the high-

3 Justin B. Hollander, Karina Pallagst, Terry Schwarz,

37 Tonkiss, 317.

est and best use for now…the benefits

and Frank J. Popper. 2009. “Planning Shrinking Cit-

38 Németh and Langhorst, 4.

have been much more dramatic than

ies,” 15.

39 Ibid., 5.

4

chasing after some corporate retailer.

Peter Bishop and Lesley Williams. 2012. The Temporary

40 Greco, 18.

City, London: Routledge, 5.

41

Sometimes the temporary can add

Ibid.

5 Philipp Oswalt, Klaus Overmeyer, and Philipp Missel-

42 Oswalt et al., 12.

much more than those kind[s] of so-

witz. 2009. “Patterns of the Unplanned,” in Pop Up City,

eds. Terry Schwarz and Steve Rugare, Cleveland, OH:

43 Greco, 16.

called permanent efforts.”56

Cleveland Urban Design Collaborative, 7.

44 Németh and Langhorst, 4.

6 Ibid.

45 Ibid.

The Future of the “Tempo-

7 Ibid., 5.

46 Ibid., 6.

rary” in American Planning

8 Ibid., 5–6.

47 Oswalt et al., 11.

As American cities continue to shift

9 Ibid., 6.

48 Németh and Langhorst, 6.

10

49

from centers of production to centers

Ibid., 10.

Ibid.

11 Ibid., 11.

50 Nate Berg. 2012. “The Tricky Politics of Vacant Lots,”

of consumption, the role of temporary

12 Michael Southworth. 2014. “Public Life, Public Space,

24 September The Atlantic Cities blog. Accessed 29

initiatives, whether planned or un-

and the Changing Art of City Design,” Journal of Urban January 2014.

planned, will increase in importance.

Design 19:1, 37.

51 Ibid.

13 Ibid.

52 Unpublished manuscript by Joern Langhorst, cited in

In fact, the adoption of temporary

14 Oswalt et al., 11. The illegal use of sites is an impor-

Németh and Langhorst, 6.

strategies has been heralded by some

tant exception to this rule.

53 Németh and Langhorst, 6.

as not simply a way to make productive

15 Ibid., 12.

54 Lang Ho.

use of vacant parcels but rather as

16 Ibid., 8.

55 Greco, 17.

a philosophy of city-making in itself;

17 Ibid.

56 Ibid.

18

57

“a manifestation of a more dynamic,

Jeremy Németh and Joern Langhorst. Forthcoming.

Bishop and Williams.

“Rethinking urban transformation: Temporary uses

58 Hollander et al., 16.

34

Additional Resources

n The Center for Community Progress web-

n Big Box Reuse (2008), by Julia Christensen,

n “Dawn of the Dead City: An Exploratory

site contains a range of resources related

profiles 10 examples of vacated big box

Analysis of Vacant Addresses in Buffalo,

to reclaiming vacant and abandoned

stores repurposed for community reuse.

NY 2008–2010” (2012), by Robert Mark

properties including toolkits, research, and

mitpress.mit.edu/books/big-box-reuse.

Silverman, Li Yin, and Kelly L. Patterson,

news. www.communityprogress.net/.

investigates the particular problems of

n Sunburnt Cities: The Great Recession,

long-term vacant and abandoned properties

n The Vacant Property Research Initiative of

Depopulation and Urban Planning in the

in shrinking cities, which they term “zom-

the Metropolitan Institute at Virginia Tech

American Sunbelt (2011), by Justin B. Hol-

bie properties.” onlinelibrary.wiley.com/

hosts a growing bibliography of resources

lander, questions the applicability of growth

doi/10.1111/j.1467-9906.2012.00627.x/

relevant to vacant properties and neighbor-

policies and planning for shrinking Sun Belt

abstract.

hood revitalization.

cities and draws lessons from Rust Belt

vacantpropertyresearch.com/.

decline to craft a more appropriate planning

n “The Local Wreckage of Global Capital:

framework. www.routledge.com/books/

The Subprime Crisis, Federal Policy and

n “NNIP Lessons on Local Data Sharing”

details/9780415592123/.

High-Foreclosure Neighborhoods in the

(2013), by the National Neighborhood

US” (2011), by Dan Immergluck, discusses

Indicators Partnership, provides step-by-

n Recycling the City: The Use and Reuse

the causes of the rise in foreclosed vacant

step advice for establishing a neighborhood

of Urban Land (2004), edited by Rosalind

properties, the difficulties they cause for

indicator system and includes examples of

Greenstein and Yesim Sungu-Eryilmaz,

communities, and the main federal response

data sharing agreements.

assembles essays that examine potential

to the problem, the Neighborhood Stabiliza-

www.neighborhoodindicators.org/

reuses of vacant and abandoned urban

tion Program.

library/guides/nnip-lessons-local-data-

land, such as urban agriculture.

onlinelibrary.wiley.com/doi/10.1111/

sharing.

www.lincolninst.edu/pubs/984_Recycling-

j.1468-2427.2010.00991.x/abstract.

the-City.

n “How Can Municipalities Confront the Vacant

n “How Do Foreclosures Affect Property

Property Challenge?” (2010), by Business

n “Great Neighborhoods, Great City: Strate-

Values and Property Taxes?” (2014), by

and Professional People for the Public Inter-

gies for the 2010s” (2012), by Paul C.

James Alm, Robert D. Buschman, and

est, the Chicago Metropolitan Agency for

Brophy, discusses revitalization strategies

David L. Sjoquist, draws on proprietary

Planning, and the Metropolitan Mayors

for Baltimore neighborhoods contending

foreclosure data from RealtyTrac, which

Caucus, includes an introductory guide,

with vacant and abandoned properties, with

provides annual foreclosures by zip code

toolkit, and detailed appendix outlining pro-

a focus on targeting resources in middle

for the period 2006 through 2011, to ex-

grams and policies to address foreclosed

neighborhoods.

amine the impacts of foreclosures on local

and vacant properties. www.bpichicago.

www.goldsekerfoundation.org/uploaded_

government property tax values and rev-

org/VacantPropertyResources.php.

files/0000/0023/great_cities_2012.pdf.

enues. www.lincolninst.edu/pubs/2344_

How-Do-Foreclosures-Affect-Property-

n “Superfund Reuse: Bringing New Oppor-

n “Greening the Rust Belt: A Green Infra-

Values-and-Property-Taxes-.For.

tunities to Communities” (2013), by the

structure Model for Right Sizing America’s

United States Environmental Protection

Shrinking Cities” (2008), by Joseph

Agency, highlights 10 examples of vacant

Schilling and Jonathan Logan, consid-

property reuse accomplished through the

ers greening strategies for vacant and

For additional resources archive, go to

Superfund Redevelopment Initiative.

abandoned properties in older indus-

www.huduser.org/portal/periodicals/em/

www.epa.gov/superfund/programs/

trial cities. www.tandfonline.com/doi/

additional_resources_2014.html.

recycle/pdf/sribrochure2013.pdf.

abs/10.1080/01944360802354956.

Evidence Matters

Discuss this issue on the

Evidence Matters Forum at

Rachelle Levitt: Editor

www.huduser.org/forums.

Keith Fudge: Managing Editor

You can subscribe to

Authors: Keith Fudge (HUD),

Evidence Matters at

Rob Wellburn (HUD Extern), and

www.huduser.org/

Sage Computing staff

portal/evidence.html.

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Table of Contents

1Vacant and Abandoned

Targeting Strategies for

Countywide Land Banks

Temporary Urbanism: