Mayor’s Land Recycling Task Force Meeting III Thursday, September 30, 2010 2 p.m. – 4 p.m.

1. Mayor’s Land Recycling Task Force Meeting III Thursday, September 30, 2010 2 p.m. – 4 p.m. Luke Ravenstahl Mayor, City of Pittsburgh City of Pittsburgh – Department of City Planning

2. Agenda • Introduction Mayor Luke Ravenstahl • Update on Pennsylvania House Bill 712 Kim Graziani, Office of Mayor Luke Ravenstahl Kendall Pelling, East Liberty Development, Inc. • Financing Irene McLaughlin, J.D., Housing Alliance of Pennsylvania • Next Steps & Upcoming Meetings Kim Graziani, Office of Mayor Luke Ravenstahl City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor City of Pittsburgh – Department of Neighborhood Initiatives

3. Introduction • Goal for Meeting • Progress to Date • Importance of discussing financing City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor City of Pittsburgh – Department of Neighborhood Initiatives City of Pittsburgh – Bureau of Police

4. Pennsylvania House Bill 712 • Summary • Timeline Introduced Passed House  Senate Urban Affairs Committee 9/16 Public Hearing As of 9/30, now incorporated into SB 900 as amendment • Next Steps City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor City of Pittsburgh – Department of Neighborhood Initiatives City of Pittsburgh – Bureau of Police

5. Financing • Increase Revenue • Reduce Costs • Additional Study City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor City of Pittsburgh – Department of Neighborhood Initiatives City of Pittsburgh – Bureau of Police

6. Financing (cont.) Land Recycling Built upon Real Estate Tax Collection and Foreclosure Processes Tax Billing/Collection…….Tax becomes delinquent…. Tax Sale …..Redemption……Land Recycling……… Eligible Hardships…......................Late Payers………… ………….Blighted & Abandoned Properties………. City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor

7. Financing-Finding Revenue • Find Revenue to Dedicate to Land Recycling The ADDS to a Tax Bill when it becomes delinquent: • Penalty (one time) • Interest (rate, timing, & how calculated) • Costs of Processing (e.g. lien filing fees, advertising, “charges, expenses and fees”) • Attorney Fees City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor

8. Financing-Finding Revenue (cont) MI OH PA Annualized Rates 18% 10% 9-12% Penalty 4% 5% 10%* Interest Rate +1% c. +1% (monthly accrual) +1.5% Costs $ adds 5%** $ adds *generally, some taxing bodies do not have statutory authority to assess penalty **delinquent tax and assessment collection funds City of Pittsburgh – Department of City Planning

9. Financing-Reduce Costs • Modernization Trends-Cost/Time Efficiencies • Single Free and Clear Judicial Sale • Pre-sale, due process notice to ALL parties in interest • No post-sale owner redemption • Reduction of Per Property Foreclosure Costs/Time-PA Joint Petitions; MI Bulk Sales City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor

10. Dedicate particular revenue streams Delinquent Tax Anticipation Notes (DTANS) Proceeds from recycled property sales 50% of future tax revenues for 5 years Reduce liability/increase immunity Separate, single purpose entities (HB712): General Powers Disposition policies Financing Options Borrowing & Issuance of Bonds (See separate one page handout) Financing-Options for Study City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor

11. Next Steps • Next Land Recycling Task Force Meeting: December 2, 2010 10:00 a.m. – 12:00 p.m. PittMAPS conference room • Upcoming Schedule of Events/Meetings Related to Land Banking City of Pittsburgh – Department of City Planning City of Pittsburgh – Office of the Mayor

12. Thank you. pittsburghpa.gov/landrecycling