Problem Properties Unit

MN APA Conference

September 22, 2008 Duluth, Minnesota

612.673.3506 Kellie.jones@ci.minneapolis.mn.us

Problem Properties Unit Mission

To analyze and resolve property issues that have not been responsive to Normal processes of enforcement – including boarded and vacant buildings

Focus Areas

1. 249 Program (Vacant, Boarded, Condemned)

2. Problem Addresses (police and housing)

3. Complex & Non-responsive (commercial)

Our Chapter 249 Program (boarded and vacant properties)

Managing Boarded and Vacant Properties

Monitor and Track Boarded, Vacant and Condemned Properties Identify properties for Vacant Building Registration

(VBR) Conduct all inspections on VBR properties until re-

occupied Process fees associated with VBR status

Administer the Ordinance Governing Boarded, Vacant and Nuisance Properties (Chap. 249) Determine appropriate abatement action – demolition

or restoration Send Director’s Orders and process appeals Coordinate all 249 demolitions; including specs and

sign-offs

Vacant Building Registration Criteria and Process Criteria

Condemned Unoccupied/unsecured Unoccupied/secured by means other than

normally used Unoccupied with housing code orders past due Unoccupied for 1 year with at least 1 housing

order Issue notice/order to owner – requests plan

and $6000 annual fee Re-inspect every 30-45 days to verify status

Samples of Properties “On the List”

A Case for Increasing the VBR Fee

Analysis in late 2007 lead to increase in fee. Average cost of boarded/vacant properties

closer to $6000 40% plus properties required re-board 80% had some type of environmental

abatement (grass, weeds, rubbish) 60% had police calls for service Average special assessment $1385 Direct impact on surrounding property values

– drop of $8000

Director’s Orders – a new procedure to manage and abate nuisance properties Chapter 249 amended in October 2006 to allow for

administrative determination of “Nuisance” Extensive notice 21 days to appeal the order 30 days to comply with the order No appeal – demolition Created Restoration Agreement

Established a legislative appeal process for expedited findings of fact

Reduced involvement of public officials Allowed for more properties to be processed

More Samples of Properties“on the list”

Actual Demolitions - Comparison by Years 2000-2008

Demolitions Regulatory Services and CPED 2005-2008

22

34

59

23

7

10

9

97

14

10

8

2

2

5

0

10

20

30

40

50

60

70

80

90

2005 2006 2007 2008

CPED

Reg Services CodeCompliance

Reg ServicesEmergency Demo

Reg Services 249Demo

Buildings Open To Trespass Up 477%

OPEN TO TRESSPASS Comparison 2003, 2004, 2005, 2006, 2007

Based on

1102

0

200

400

600

800

1000

1200

J an Feb Mar Apr May J un J uly Aug Sept Oct Nov Dec

2003

2004

2005

2006

2007

795

Buildings Requiring Boards Up 583%

Housing Authorized Board Ups 2003-2007

1642

6693

133

187

227261

282

343370

456

2857

102

155

210

253

341

423

495

577

670

724

150

254

0

100

200

300

400

500

600

700

800

J an Feb Mar Apr May J un J ul Aug Sep Oct Nov Dec

200320042005

20062007

“On the List”

Vacant Building Registrations Up 204%

VBR properties more than doubled in 2007

Increased complexity due to

foreclosures

Concentrated in two areas of the City

Number of Properties s on the Vacant Building Registration List 2003 - 2008

247286

258

481

770

928

0

100

200

300

400

500

600

700

800

900

1000

2003 2004 2005 2006 2007 2008

Location of Boarded and Vacant Buildings Follows Foreclosures

A Snapshot of Properties on the VBR List

VBR Properties by Level of Service950 Properties

10%

20%

70%

Directors Orders (RA, Appeals,Demo)

Routine

Additional

(10%) properties require roughly 120 hours per property per year(70%) properties require roughly 50 hours per annually per year(20%) properties require roughly 25 hours per annually per year

2/3 of properties are condemned

1/3 vacant (not boarded or condemned)

10% take up between 100-125 hours of staff time to manage

Length of Time Properties Remain on the Vacant Building List

Approx 930 registered as vacant

Majority on the list between 0-2 years

4% have been Vacant 5+ years

Length of Time of Properties on Vacant Building Registry4 to 5 years

9 (1%)

More than 5 years27 (3%)

3 to 4 years17 (2%)

2 to 3 years67 (7%)

Less than 6 months202 (22%)

6 to 12 months329 (35%)

1 to 2 years277 (30%)

City-County Demolition Collaborative

Summer 2008 – Partnered with County to Demo an Additional 50 properties

Windshield analysis of 370 condemned properties – Yes, No, Maybe

Assembled additional data and reviewed analysis Length of time condemned Structural problems General condition Fire history Recent Permits Lot size / zoning House size and marketability Preservation Analysis After-rehab market value

Identified 99 properties for Director’s Order to Demolish

To date – 35 appealed; 54 out on bid

Batch bids in groups of 27 properties per group

Goal to have all 54 plus down by December

Continue to re-design the 249 process Tiered approach to condemnation

Increase the use of Restoration Agreements

Explore the use of Receivership to increase rehab

Expand our “Warning System”

Explore options for vacant commercial

Looking Forward