Neighborhood initiative program best practices for strategic demolition

1. Neighborhood initiative programbest practices for strategic demolition GREATER OHIO POLICY CENTER STAFF Lavea Brachman Executive Director Alison D. Goebel Associate Director Marianne Eppig Manager of Research and Communications

2. Overview • About Greater Ohio Policy Center & Ohio Housing Finance Agency • Overview of the Neighborhood Initiative Program • Purpose & Overview • Program Guidelines • Identification of Target Areas • Target Area Plan Requirements • Identification of Target Areas • Neighborhood Types • Indicators of Neighborhood Conditions & Types • Example Target Areas • Best Practices: Youngstown and Michigan

3. Overview • How to Choose Buildings for Demolition • Developing and Prioritizing Criteria for Demolition • Potential Criteria for Demolition • Example of Building Selection • Best Practice: Youngstown • Use of Criteria to Support Demolition Decisions • Due Diligence • Property Acquisition • Property Acquisition & Cost Guidelines • Property Acquisition Pipelines • Environmental Review • Historic Preservation • Acquisition Timeline • Acquisition & Disposition Policies • Reuses of Land • Why is a Land Reuse Strategy Important? • Demolition, Cleaning & Greening • Eligible Reuses • Matching the Site & Reuse • Examples of Land Reuse • Property Maintenance • Further Resources

4. Greater Ohio Policy center:“Think” and “Do” tank An outcome-oriented statewide non-profit organization that develops and implements policies and practices to: • Revitalize Ohio’s urban cores and metropolitan regions • Achieve sustainable land reuse and economic growth

5. Greater Ohio policy center expertise • 2010 Restoring Prosperity to Ohio, a report co-written with the Brookings Institution • 2012 technical assistance to the Attorney General’s Moving Ohio Forward program for demolition funding • 2012 Demolition Roundtable and input into “Laying the Groundwork for Change: demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program • 2013 policy brief on Regenerating America’s Legacy Cities

6. Ohio housing finance Agency OHFA is a self-supporting quasi-public agency that uses federal and state resources to provide housing opportunities for families and individuals through programs designed to develop, preserve and sustain affordable housing throughout the State of Ohio. OHFA is the administrator of the state’s foreclosure prevention program, Save the Dream Ohio. OHFA website: http://www.ohiohome.org/

7. Overview of the Neighborhood initiative program Best practices for strategic demolition

8. Overview of neighborhood initiative program The Ohio Finance Agency (OHFA) received approval from the U.S. Department of the Treasury to utilize up to $60 million of Ohio’s remaining Hardest Hit Funds (HHF) to assist with stabilizing local property values through the demolition of vacant homes across Ohio. The Neighborhood Initiative Program (NIP) is designed to stabilize property values by removing and greening vacant and abandoned properties in targeted areas in an effort to prevent future foreclosures for existing homeowners.

9. Purpose of neighborhood initiative program The Neighborhood Initiative Program (NIP) will fund strategically targeted residential demolition in designated areas within the state of Ohio. OHFA will partner with county Land Revitalization Corporations (“land banks”) or an entity that has signed a cooperative agreement with an established county land bank.

10. Overview of neighborhood initiative program NIP will be available to the 16 Ohio counties that have an established land bank. OHFA has issued a Request for Proposals from the state’s county land banks. The program will begin in early 2014 and conclude in 2017.

11. Overview of Neighborhood Initiative program OHFA has contracted GOPC to advise OHFA and applicants on the implementation of the Neighborhood Initiative Program (NIP). Assistance includes: • Consultation with applicants regarding best practices for the selection of neighborhoods and properties for the program • Technical advice to eligible applicants in responding to the RFP for the NIP

12. Overview of neighborhood initiative program Program applicants must focus on: • Target areas • Demolition and greening of abandoned residential properties • Preventing further reduction in property values • Preventing possible foreclosure of existing residential homes

13. guidelines of the neighborhood initiative program • Only vacant and abandoned 1-4 unit residential properties with a unique address that qualify for lawful demolition under state or federal law are eligible for NIP funding. • Applicants will be responsible for property acquisition, environmental assessment and remediation, demolition, greening, and ongoing maintenance of properties. • The maximum amount of assistance per residential property is $25,000, which may only be used for pay off of a loan, approved demolition, remediation and greening of the site, maintenance, and administration for up to three years or until the final disbursement, whichever is later.

14. guidelines of the neighborhood initiative program • NIP applicants must submit a strategic plan that proposes selective or wholesale acquisition and demolition of vacant and blighted properties in target areas. • This should be part of a larger comprehensive strategy to stabilize home values and prevent foreclosure.

15. guidelines of the neighborhood initiative program The strategic plan should address three key elements: • Identification of target areas • Source of properties to be acquired • Maintenance and/or redevelopment of vacant land

16. Identification of target areas Best practices for strategic demolition

17. Target area plan requirements For each target area, applicants should explain the reason the area was selected and how the strategy will reduce foreclosures for existing homeowners by: • Increasing the value of surrounding properties, • Attracting private investment and development, or • Supporting current investment and development.

18. Identification of target areas The criteria in these sections of the chart can assist in the identification and selection of target areas for demolition Chart from “Laying the Groundwork for Change: Demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program, Sept 2012

19. Target area plan requirements Strategies for targeted demolition must align with an appropriate neighborhood type. The strongest plans will likely focus on “tipping point neighborhoods.”

20. Neighborhood types

21. Neighborhood types

22. tipping point neighborhoods • In many cases, a community’s demolition priorities should not be in heavily abandoned and disinvested areas, but in areas where removal of buildings is likely to help stabilize neighborhood conditions and property values and create potential reuse opportunities. • Tipping point neighborhoods are often the most responsive to targeted and coordinated resources. • Targeted investment may have a larger impact on a community with respect to resident confidence and future tax revenues than wholesale demolition.

23. Neighborhood types • There is no standardized set of metrics or measures that distinguish different neighborhood types. • While each city is unique, the continuum of neighborhood conditions can typically be found in most cities.

24. Indicators of neighborhood conditions & Types Analyze the location and density of: • Foreclosure activity • Owner-occupied buildings • Vacant properties • Property values (such as clusters of high or low property values) • Historic districts and properties • Crime rates • Building code complaints

25. Indicators of neighborhood conditions & Types Analyze the location and density of neighborhood assets, such as: • Recent or proposed public or private investments • Employment centers (e.g. local companies) • Major institutions (e.g. local universities or hospitals) • Community amenities (e.g. public parks and spaces)

26. Identification of target areas Neighborhoods that have the following features or ongoing activities are likely to benefit the most from strategic demolition: • A strong social fabric, reflected in strong neighborhood or civic associations or neighborhood-level institutions; • Active CDC-led stabilization or revitalization activities, preferably but not necessarily grounded in a neighborhood or target area plan; • Features that suggest greater market potential, such as distinctive housing stock or location in close proximity to a strong anchor institution; and • A significant planned public investment in an area, such as a new school or public transportation route.

27. Identification of target areas The applicant should seek information and input from representatives of community development corporations and other entities engaged in neighborhood revitalization, as well as representatives of neighborhood associations in areas potentially targeted for demolition, to help both identify priorities and strategies, and to evaluate specific buildings.

28. Identification of target areas • What are the set of priorities identified by the county and participating communities? • Does demolition fit into the local government’s comprehensive plan of redevelopment for the overall community for improving property values, and increasing private investment and redevelopment?

29. Demolition in target areas Once the key target area—whether a block face, a larger area of a few city blocks, or a corridor—has been identified, all of the buildings that cannot realistically be reused in the area should be demolished. For example, if there are three derelict abandoned buildings on a block face and two are removed, the effect on resident confidence and property values is limited; the remaining blighted property will continue to do almost as much harm as the three that previously stood there.

30. Best practice: youngstown Public, private, and non-profit investments are targeted to Crandall Park North, Lincoln Park, and Idora because these neighborhoods have: • Existing community networks and block groups among neighbors that could be strengthened relatively easily • Majority owner-occupied homes, despite lower rates of occupancy • Access to community amenities like Mill Creek Park (one of the largest metro parks in the nation) and Stambaugh Golf Course • Architecturally unique and attractive residences

31. Example target areas Crandall Park North, Lincoln Park, and Idora Neighborhood in Youngstown are target areas for strategic demolition because they are tipping point neighborhoods.

32. Best practice: Michigan demolition strategy The State of Michigan’s demolition strategy will focus on demolition of blighted or abandoned property that: • Assist in the stabilization of neighborhoods with high rates of foreclosure prevention services and/or homeownership, or other tipping point indicators. • Present a visual impediment along key corridors. • Is in direct support of proposed investment of public or private funds including properties that will be redeveloped for residential or commercial use. • Is directly adjacent to or across from recent public or private investment, proposed investment, or other assets designated as critical investments or institutions by state or local officials. • Is critical for investment in or improvement of infrastructure, public parks or other locally or state endorsed projects.

33. How to choose buildings for demolition Best practices for strategic demolition

34. How to choose buildings for demolition The selection of buildings for demolition should be based upon the: • Set of priorities identified by the county and participating communities • Market and neighborhood conditions • Feedback from engaged stakeholders • Property availability and cost

35. How to choose buildings for demolition • Demolition decisions will not be clear-cut. • Decisions will involve balancing many different factors. • Developing criteria for demolition decisions can assist the process.

36. Developing & prioritizing criteria for demolition • Applicants should identify and prioritize criteria to guide their demolition activities. • Criteria can be ranked or weighted to account for their relative priority. • Prioritization should be based on existing community and city priorities.

37. Developing & prioritizing criteria for demolition • Since each county is unique, the significance—and therefore the weighting—of criteria should be tailored to the local context. • If developed to fit the local context, criteria can be used to help make strategic decisions that are more likely to be appropriate for local communities.

38. Potential criteria for demolition From “Laying the Groundwork for Change: Demolition, urban strategy, and policy reform” by Alan Mallach, Brookings Metropolitan Policy Program, Sept 2012 The criteria in this section of the chart can assist in the identification and selection of buildings for demolition

39. Quality & character of building Does the building have architectural or historical value, either in itself or as part of a coherent ensemble? • Demolish the building if it is physically obsolete. • Preserve the building if it is attractive, of high quality, or of architectural or historic value. • Properties listed on a federal historic register are not eligible for NIP funding for demolition. Properties located in historic districts will be subject to local historic preservation legislation, which may or may not allow for demolition.

40. Building condition What is the condition of the building and what is the likely cost to rehabilitate it for productive use? • Demolish the building if it is physically obsolete and if the cost to rehab the building significantly outweighs its value. • Preserve the building if it is attractive, of high quality, or of architectural or historic value. • A building’s value can be determined through: • An Auditor’s appraisal • Services such as Zillow (which may not be as reliable) • Real estate “broker price opinions”

41. Nuisance & blighting effect Does the building have a blighting effect on the surrounding area, or does it constitute a present or potential nuisance—a threat to public health or safety? • Demolish the building if its nuisance impact and the harm that it is doing in its present condition (in the absence of immediate reuse potential) outweighs the benefits of saving it for possible future use. • Preserve the building if the reuse potential of the building, even if not immediate, outweighs the current harm that it does in its present condition, particularly if enhanced efforts are made to secure or stabilize the property. Political and/or public support for preserving the building may help to determine this.

42. Nuisance & blighting effect Ohio Revised Code provides state definitions of a “blighted parcel” and “nuisance.” • A “blighted parcel” is generally a property that is dilapitated, unsanitary , unsafe, vermin infested, or that poses a direct threat to public health or safety. • For more details, see http://codes.ohio.gov/orc/gp1.08 • A “nuisance“ is generally an activity on or condition of a property that is harmful or annoying to others. • For more details, see http://codes.ohio.gov/orc/3767

43. Does the building pose a danger to public health or safety? • Does the building fit “blighted parcel” criteria? • Does the building pose an environmental or public safety concern? If the answer is “yes” to either of these questions, demolition of the property may be desirable.

44. Contribution to texture Does the presence of the building contribute meaningfully to the existing neighborhood texture, and would it be compromised by the building’s removal? • Demolish the building if it is located in an area where the neighborhood fabric has largely been lost through incompatible land uses and demolitions. • Preserve the building if it is located in an area where the neighborhood fabric is still strong, and the building’s presence contributes to that fabric.

45. Reuse potential What potential redevelopment or revitalization opportunities, if any, will the demolition of the building create? • Demolish the building if the demolition will facilitate a comprehensive rebuilding or revitalization strategy in the area. • Preserve the building if demolition will result in an unused vacant lot rather than an opportunity for redevelopment or revitalization.

46. Example of building selection • Building is a blight to the surrounding community. • Demolition of the building is coordinated with local revitalization efforts and community plans.

47. Best practice: youngstown property ranking for demolition Demolition criteria to rank properties for demolition desirability: • Property condition • Proximity to vacant and occupied homes • Active neighborhood group or block-watch • Focus neighborhood of an organization

48. Best practice: youngstown property ranking for demolition • A Rating • Excellent, no visible signs of deterioration • Well maintained and cared for • New construction or renovation • Unique, historic detailing • B Rating • Needs basic improvements • Needs minor painting • Needs removal of weeds or landscaping • Needs to be cleaned • C Rating • Some cracking of brick and wood • Major painting required • Crumbling concrete • Cracked or damaged • D Rating • Major cracking of brick, wood rotting • Broken or missing windows • Missing brick and siding • Open holes in roof • F Rating • House is open and a shell • Ransacked and full of trash • In danger of collapse • Immediate safety hazard to neighborhood

49. Use of criteria to support demolition decisions • Criteria will not only legitimize demolition decisions, but also will maximize the value of demolition and provide the greatest impact on communities. • Quantifying metrics for criteria can help with demolition decisions. • Applicants can use metrics for criteria to describe how demolition activities would impact and aid target areas and their surrounding communities. • Applicants can use metrics to describe how demolition activities further current revitalization activities and goals already outlined by the community.

50. Due Diligence Inspections • Some level of pre-acquisition due diligence is necessary, even if the intended disposition is demolition. • Prior to acquisition, there is no shortcut to a physical on-site property inspection. Staff or hired inspection vendors should look at the property from various perspectives. • Is the home vacant? • Are there squatters? • Does the home have a realty "For Sale" sign? • Consider other indicators that are noted throughout this presentation • In the case of tax foreclosed vacant and abandoned property, there is typically no opportunity to observe the interior of a home unless the home is open and unsecured. Exterior inspections should still occur with pending tax foreclosures.