Problem Properties Unit

1. Problem Properties Unit MN APA Conference September 22, 2008 Duluth, Minnesota 612.673.3506 Kellie.jones@ci.minneapolis.mn.us

2. 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 • 249 Program (Vacant, Boarded, Condemned) • Problem Addresses (police and housing) • Complex & Non-responsive (commercial)

3. Our Chapter 249 Program (boarded and vacant properties)

4. 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

5. 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

6. Samples of Properties “On the List”

7. 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

8. 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

9. More Samples of Properties“on the list”

10. Actual Demolitions - Comparison by Years 2000-2008

11. Buildings Open To Trespass Up 477%

12. Buildings Requiring Boards Up 583%

13. “On the List”

14. Vacant Building Registrations Up 204% • VBR properties more than doubled in 2007 • Increased complexity due to foreclosures • Concentrated in two areas of the City

15. Location of Boarded and Vacant Buildings Follows Foreclosures

16. 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 A Snapshot of Properties on the VBR List

17. 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

18. 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

19. Looking Forward • 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