SYMPOSIUM: TOOLS FOR MANAGING VACANT LAND IN

PHILADELPHIAO C T O B E R 6 , 2 0 1 1

P R E S E N T E D B YC H R I S T O P H E R N O R M A N – E X E C U T I V E D I R E C T O R

How Municipal Land Banks Can Help Revitalize

Communities

Overview

Governance/Structure OverviewProgrammatic Initiatives/Disposition

Strategies

What is a Land Bank

Tool for converting vacant, abandoned, or distressed property into productive use.

Core competency is acquisition and disposition of troubled, surplus, or vacant property.

Does NOT have eminent domain or taxing authority.

Steps in where market does not or cannot work due to administrative/legal barriers.

Governance/Structure Overview

Established in October 1991 as non-profit, 501(c)(3) tax-exempt corporation pursuant to act of General Assembly.

Interlocal Cooperation Agreement executed in January 1994 between City of Atlanta and Fulton County. Atlanta is located within boundaries of Fulton County. In light of mutual benefit, Interlocal Cooperation Agreement

established to outline governance, powers, purpose and available resources.

Self-contained decision making authority via Board of Directors appointed by Mayor of Atlanta/City Council and Fulton County Chairman/Board of Commissioners

Governance/Structure Overview

Key Elements of Interlocal Agreement Powers of the Authority Formation of the Authority Board of Directors Duties and Responsibilities of the Board Provisions for Staffing and Retention of Outside Services Funding and Expenditures Acquisition and Conveyance of Property by Authority Waiver of City’s Special Assessments Development of Properties Conveyed by the Authority Cooperation and Interaction with Other Fulton

County/Local Municipality Land Bank Authorities

Governance/Structure Overview

Mission Return non-revenue and non-tax producing property

to productive status in order to promote housing, new industry and jobs.

Acquire title to tax delinquent property and manage, maintain, protect, rent, lease, repair, insure, alter, sell, trade, exchange or otherwise dispose.

Extinguish past due tax liens from property foreclosed upon by Fulton County and the City of Atlanta.

Programmatic Initiatives

Tax Abatement Land Banking Depository Program Community Land Trust Sheriff/Marshall Deed Conveyance Public/Private Development PartnershipsGreenspace AssemblageNSP/Community Coordinator PlatformCommunity Gardening (Tentative)

Tax Abatement

Targeted tax abatement to assist development of affordable and mixed income housing projects Abatement includes Fulton County, City of Atlanta,

Atlanta Public Schools, and Fulton County Schools taxesRemoves delinquent tax “overhang” that limits

incentive of developers to focus on certain properties and areas

Distressed areas can yield properties where tax delinquency exceeds market value of property

Tax abatement considered soft equity investment in projects

Tax Abatement

Land Banking Depository Program

Board approved Land Banking Program Policy in December 2007

Launched Land Banking Program in July 2009

Provides “banking” of eligible residential and commercial properties for three years for non-profit entities and up to five years for governmental entities

Land Banking Depository Program

Goals Advance acquisition of potential development sites in

anticipation of rapidly rising land prices Facilitate pre-development planning, financing and

structuring Minimize violations of housing and building codes and

public nuisances on properties to be developed for affordable housing

Hold parcels for future strategic governmental purposes such as affordable housing and open spaces and greenways

Land Banking Depository Program

Limited to non-profit or governmental entities. For-profits may participate via joint venture as minority partner.

Entities must complete application and upon staff recommendation, Board of Directors approves Land Banking relationship

Benefits Allows for aggregation of properties and site control for

large areas Eliminates tax burden during development phase Provides time to fine tune development and financing plans Reduced costs of property management and insurance due

to economies of scale

Land Banking Depository Program

What constitutes banking? Master Land Banking Agreement executed that details

responsibilities and mechanics of arrangement Title transferred to LBA Insurance provided by LBA Property maintenance provided by LBA Holding costs for insurance, property maintenance and

solid waste fees absorbed by granting entity. Payment is made to LBA on real time basis and not accrued to end of banking period

Property is tax-exempt during banking period

Land Banking Depository Program

Community Land Trusts

LBA maintains standing Board seat on Atlanta Land Trust Collaborative

LBA serves as property sourcing entity Discounted property purchases Donations

LBA serves as acquisition agent on behalf of CLT

Allows for aggregation of property prior to launch via Land Banking Depository Program Currently holds over 50 properties targeted for new

CLT Utilizes tax abatement for clearing title

Sheriff/Marshall Deed Conveyance

Fulton County and City of Atlanta conveyed approximately 600 Sheriff/Marshall deeds to the LBA

Deeds represent tax interest in properties and not fee simple interest

Conveyed approximately 510 to date to Board approved CDC’s, non-profit developers, for-profit developers and owner occupants for affordable and mixed income housing projects

Priority of conveyance - government, non-profits, private citizens/ owner occupants, for-profits

NSP

With launch of NSP, City of Atlanta and LBA determined need for Community Coordinator function at the LBA

October 2009, hired Community Coordinator/ Program Manager, to coordinate launch of REO Acquisition Program that provides efficient, cost effective mechanism for acquiring and transferring vacant and foreclosed properties

Serve as central point of contact between Lenders, Servicers, Investors and qualified purchasers

Establish a pipeline of properties based on criteria provided by qualified purchasers, City of Atlanta and LBA

NSP

Property sources include National Community Stabilization Trust, REO Lenders, Servicers, and Investors

LBA facilitates complete transaction from property identification to closing

Position funded as part of program costCompleted 100% obligation of $3.192M in

NSP funding for targeted acquisitions and land banking of single family and multi-family properties

NSP

Purchased 9 multi-family properties 25 single family properties

Currently banking/holding 53 single family properties 8 multi-family properties

Preparing RFP for developers to complete rehab and disposition of banked properties

NSP 3 $4.4 from City of Atlanta allocation of $4.9M

To be used primarily for rehabilitation and property acquisition with a minor portion for land banking holding costs

Public/Private Development Partnerships

Opportunity to leverage capabilities of LBA for scaled public/private partnerships

Reached agreement for demonstration project 20 properties in initial phase

Acquire and rehab foreclosed properties Recently facilitated purchase of 34 lot foreclosed

subdivision from FDIC for redevelopment Partner funding acquisition and rehab from own capital LBA to spearhead acquisition via property pipeline Affordability built into business model

Public/Private Development Partnerships

Currently negotiating partnership agreement with following parameters $20 million capital commitment Purchase and rehab up to 500 properties Properties positioned for resale or rental Focus on single family LBA to provide property sourcing

Other Programmatic Initiatives

Greenspace Assemblage Creation of temporary and permanent greenspace Assisting City of Atlanta with initiative to double

greenspace in City Current acquisition projects underway

Other Programmatic Initiatives

Community Gardening (Tentative) Potential temporary repurposing of property

Alternative means of property management Community building Improve accessibility of fresh produce for local

neighborhoods

Contact

Christopher NormanExecutive Director

Main 404-525-9336Direct 404-525-9130

cnorman@fccalandbank.org

www.fccalandbank.org