Rutland Northwest Neighborhood revitalization study

1. Rutland Northwest Neighborhood revitalization study Preliminary Themes

2. Key Themes from earlier Market study • The City of Rutland is losing population not just because of a regional economic decline, but also because it is not competing well against other towns when households decide where to live • Rutland has an under-valued housing market • Affordability is excellent compared to most markets nationally • Excellent time to buy • But people need to have confidence in the neighborhood they’re buying in • 2-4 unit stock is not desired by the market; severely under-invested • Key neighborhoods are seeing concentrated poverty, blight, disinvestment

3. Goals for the revitalization study • Focuses on the Northwest neighborhood of Rutland • Recommend a detailed, property-by-property strategy for addressing blighted properties in the neighborhood • Recommend revitalization strategies: • Neighborhood market-building strategies to reposition the neighborhood and positively influence decisions by homeowners and homebuyers to invest in the neighborhood • Strategies to engage with /support grassroots stakeholders seeking to better manage day-to-day neighborhood issues • Other strategies to promote revitalization within the neighborhood • “Healthy Neighborhoods” = places where it makes sense for people to invest their time, money and energy

4. PROJECT TASKS FOR THE Revitalization STUDY • Met with City staff and toured the Northwest neighborhood • Interviewed local neighborhood and housing market stakeholders • Compiled, analyzed and mapped data about the neighborhood housing market

5. Land Use and Flood zones

6. Police Calls

7. Property Disinvestment

8. Tenure and Disinvestment

9. Overall Block Attractiveness

10. Target Area Numbers • 396 Total Parcels/845 Total Housing Units • 32% Owner Occupied • 68% Investor Owned • 21 Vacant Structures • 34 Properties with Tax Delinquencies greater than $1,000 • 10 Owner Occupied • 18 Investor Owned • 6 Non-Residential Uses • 18 Properties with Foreclosure Filings • 16 Properties For Sale

11. Healthy Neighborhood Outcomes Outcomes are a way to describe how a neighborhood looks and behaves when it is healthy. Revitalization strategies for healthy neighborhoods are focused on achieving some important outcomes in four areas.

12. 1: Neighborhood Image • Healthy neighborhoods have a positive image that makes people want to stay there, and others want to move there. • It makes business and government want to invest there. • In healthy neighborhoods, people are confident in the future.

13. 2: Real Estate Market • In healthy neighborhoods, home values are strong enough to “get back” your investment in maintenance and improvements – and strong enough that homebuyers think buying a home there is a good investment. • Healthy neighborhoods attract good neighbors whether they are renters, landlords or owner-occupants, and they attract a variety of income groups.

14. 3: Physical Conditions • Homes, businesses, streets and parks look like people are proud to be there – people take care of their property and do their part to keep the neighborhood looking great.

15. Standard Setters

16. Preliminary Strategy RecommendaTIONS

17. Build Confidence, Safety and Identity • Build community, organization and skills among neighbors, including renters and landlords, to manage day-to-day issues. • Implement safety initiatives with neighbors, but avoid making crime-fighting the image of the neighborhood. • Build neighborhood identity around closeness to downtown and other recreational amenities, friendly neighbors and a great value for homeownership.

18. Move to Higher Owner-Occupancy • Protect, support and retain strong owner-occupants and landlords by proactively addressing problem properties around them, and designing “whole block” approaches. • Put a “circuit breaker” into tax delinquent dispositions – avoid auction in favor of transfer to a responsible (nonprofit) developer who will rehab to an owner-occupant standard and find an owner-occupant buyer. • Reach out to owner-occupants in danger of tax or mortgage foreclosure to help resolve or achieve smooth transition. • Work with existing renters interested in buying a home via homebuyer education. • Rezone to SFR.

19. Help Landlords Become an Asset • Offer training to landlords on tenant screening, dealing with criminal activity, property maintenance, leases, evictions, compliance with c/o requirements, etc. • Create a regular social networking group of landlords from this neighborhood to share best techniques. • Low-cost loans to landlords to improve exterior conditions to pride standard, and grants to reduce density where possible. • Engage landlords in all community building activities. • Avoid scenarios in which undercapitalized, unskilled landlords can buy poor quality homes, make minimal investments and are set up for failure.

20. Get Recalcitrant or Overwhelmed Landlords Out of the Neighborhood • Be aggressive about code enforcement. • Work on receivership or other ordinances that will allow faster action on terrible properties. • Buy out landlords with tax or mortgage delinquent properties for rehab and flip to owner-occupant. • Find outstanding landlord(s) to buy out the recalcitrant or overwhelmed landlord(s).

21. Improve More Physical Conditions to Pride Standard • Systematically improve property values and building conditions by lending for rehab over appraised value, acquiring and rehabbing over appraised value, etc – bring values to a point where it makes sense for a private developer to acquire and rehab for flip to an owner-occupant. • Set standards for exterior improvement that must be met in exchange for low-cost rehab – in line with existing “pride” standards in neighborhood. • Support beautification efforts by neighbors with mini-grants, group buying, etc. • Target street, sidewalk, curb, tree improvements by city.

22. Improve Market Conditions Via Dedensification • De-densify thru demolition of very poor vacant properties with assignment of lots to adjacent homeowners and incentives to improve lots. • De-densify with subsidy to reduce units in a building – either via loans/grants to existing landlords and homebuyers, or via acquisition-rehab-resale. • De-densify by changing zoning to SFR.

23. Offer Lending Program for Owners and Investors to make improvements to their homes • Engage entire block to develop block unifying project with mini-grant funds for implementation • Repaving sidewalk and streets Purchase Rehab 2-family to Single Family Resale to Owner Occupant Purchase Demolish Split Lot and Landscape

24. Implementation • “Whole block” approach where the highest and best use for each property is identified • Coordinated team approach to look at and review opportunities along each block quarterly • Rutland Redevelopment Authority • NeighborWorksWestern Vermont • Building Department • Tax Assessor • Treasurer • Realtor • Collect and use updated data on Foreclosures, MLS Listings, Vacant Properties, Tax Delinquency, Neighborhood input to make decisions • Acquire properties when opportunities arise even when strategy is buy and hold

25. Where to start?