Roger Bird - Project Highlights

Professional Pages >> Project Highlights >> FDIC

Neighborhood Revitalization and Reinvestment Program
A Six-Month Review - October 1994
Prepared by: Roger Bird

BACKGROUND

In April 1994, the Northeast Service Center established the Neighborhood Revitalization and Reinvestment Program (NRRP) to explore innovative alternatives and non-traditional marketing strategies for the disposition of troubled properties located in economically distressed communities. Corporate social responsibility mandates that alternatives be considered to collectively improve and revitalize neighborhoods within these communities. As a holistic approach, the NRRP is working to build cooperative partnerships with Federal, state and local municipalities, private non-profit sponsors and the banking community for the disposition of properties in a socially responsible manner.

WHY A NRRP

In the late 1980's, the New England region experienced structural economic and social disruptions that threatened its survival. Businesses crucial to the economic future battle to survive and hundreds of thousands of jobs have been lost. Massachusetts, Connecticut and the entire New England region continue to suffer depreciating real estate values, increasing loan defaults, foreclosures, and bankruptcies from an unprecedented number of bank failures.

These are all symptomatic signs of a failed economy. At the same time, municipalities throughout the region struggle to pay for and deliver services in the face of numerous property abandonment, a decline in local grand list, increasing tax delinquencies, and the migration of businesses and mid-to-upper income families to the suburbs.

The FDIC, as protector of the United States banking system, has become deluged with non-performing loans and unwanted real estate from the substantial number of bank failures throughout New England. Historically, the FDIC has been successful in marketing and disposing of assets from failed banks. Today, however, through no fault of their own, the successful marketing methods of the past are no longer as effective.

OWNED REAL ESTATE ANALYSIS

As of September 30, 1994, the Northeast region (DAS) held 1,925 individual pieces of ORE of which 71% were greater than one year old. In addition, the four Northeast offices of the Contractor Oversight and Monitoring Branch (COMB) add another 740 properties of which 54% were held greater than one year.

Facing the same problems as the FDIC, the Valley Forge Office of the Resolution Trust Corporation (RTC) carry another 281 properties, which 70% have been held greater than one year. Each division/agency encounters the same barriers within their disposition objectives.

NRRP's OBJECTIVES AND ACCOMPLISHMENTS

As a first step, the NRRP established a database of all ORE throughout the Northeast region. This database included not only the Division of Depositors and Asset Services (DAS) [1] properties, but also the Contractor Oversight and Monitoring Branch (COMB) [2] and recently included the Valley Forge Office of the Resolution Trust Corporation (RTC).

The database is the first of its kind, combining seven servicing offices, two divisions and two agencies. The primary purpose of the database is to prepare a "Property Marketing Report". The Property Marketing Report is formatted for either internal use (FDIC) or general public distribution (see section "A" for a sample report of Hartford, CT). The report includes all ORE property available for sale, identifies the agency/division, indicates property type, Affordable Housing eligibility, a brief property description, and the designated property marketing and management contacts. Numerous other uses for the database have been found. It has been very effective in providing information for timely responses to congressional inquiries, providing property demographic (determining where properties owned by two separate divisions are located next to each other), and statistical management reporting.

Second, the NRRP developed guidelines for establishing "appropriate market value" and defining distressed properties. The objective was to re-think traditional marketing methods. Generally, the FDIC is "appraisal driven" in establishing a marketing price and accepting a sale offer. A concept paper addressing these issues has been developed for management's consideration. If the recommendations are adopted, the philosophy will assist marketing officers to more aggressively dispose of properties (see section "B").

Third, the NRRP established criteria to target properties for consideration under the program. Originally, one of the following criteria was to be met for a property to receive NRRP consideration:

Appraised value of $50,000 or less;
Located within or adjacent to a city designated revitalization zone;
Located within a neighborhood in which there is a community revitalization effort.

This criteria was established based on our initial study using Bridgeport, Connecticut as a model in developing the program. The NRRP can be effective with any distressed property. We have modified target property as a definition of distressed property to include any property that is:

Located within an economically distressed community;
Has been held for greater than one year or;
Where disposition may provide a social benefit to the community.

Last, the NRRP took a leadership role in convening a statewide symposium to assist in the development of a strategic plan for the revitalization of housing in distressed cities throughout Connecticut.

Neighborhood Revitalization Symposium Task Force

On July 11, 1994, Senator Christopher J. Dodd provided the opening keynote address to kick off a statewide Revitalization and Reinvestment symposium. The symposium, initiated by the FDIC, was a collaborative effort with the Connecticut Institute of Municipal Studies, the U.S. Department of Housing and Urban Development, Connecticut Office of Policy and Management, and the Connecticut Housing and Finance Authority. The objective of the symposium was to create a forum to seek new ways to dispose of foreclosed real estate while promoting economic development and community revitalization. Other speakers included Ken Gorham, Regional Director of the FDIC - NESC; Mary Lou Crane, Regional Administrator of the U.S. Department of Housing and Urban Development; and, William Cibes of the State of Connecticut - Department of Housing. Over 125 attended and participated in the symposium and represented a broad cross section of Federal, state and municipal officials, banking institutions, and a diverse private and public interest group.

The FDIC has received numerous compliments and positive feedback for its initiative of and involvement in the symposium. The FDIC has been well represented within each of the subcommittee work groups and will continue its active participation as a co-sponsor of this effort. FDIC staff members participating in the sub-committee work groups include: Tom Stokes, Tom Ciccalone and Roger Bird. Further information on the Symposium can be found under section "C".

OTHER ACCOMPLISHMENTS

In addition to the initial goals and objectives of the NRRP, there have been a number of other accomplishments. Significant working relationships have been forged with U.S. senators, state legislators, mayors, selectmen, assessors, numerous Federal and state agencies, and all participants of the Symposium. Other accomplishments or highlights include:

CHFA COMMITS $5 MILLION FOR FINANCING FDIC PROPERTY

The FDIC and the Connecticut Housing Finance Authority formed a partnership to provide below market rate mortgage financing specifically for FDIC [3] foreclosed properties. CHFA has initially set aside $5 million for this program. In addition to below market interest rates, CHFA offers a down payment assistance program and rehabilitation cost that can be included within the financing package. This program strikes the heart of "Building Cooperative Partnerships" and is an enhancement to the FDIC's marketing efforts (see section "D").

OWNED REAL ESTATE FORUM

On August 3, 1994, the FDIC initiated and held the first Owned Real Estate (ORE) forum for institutional property holders of ORE in Connecticut. All institutional owners of real estate share common concerns of depreciating real estate values, foreclosures, abandoned properties and associated environmental problems such as lead based paint and asbestos. The forum is designed to identify key areas of common interest in managing ORE portfolios and to develop cooperative solutions to the barriers that restrict the disposition of these properties.

The first objective of the forum was creating a comprehensive database of all institutionally held ORE property in Connecticut. The initial database has been completed with 17 institutional participants, compiling just under 3,000 properties. These properties have been mapped for the five major Connecticut cities (see section "E") by street address, identifying those neighborhoods (zones) where concentrations of common ownership are shared. This provides the opportunity to form partnerships and collectively revitalize entire blocks of neighborhoods. The forum has adopted a general strategy of its objectives as outlined in Owned Real Estate Forum - A Concept Strategy [4] (see section "E").

The Federal Home Loan Bank of Boston recently sponsored a housing conference in Boston and was attended by Tom Stokes (AHP) and Tom Ciccalone (NRRP). The FDIC was recognized at this conference as a forerunner in developing ways that build stable partnerships to foster community development. Mr. Ciccalone participated partnership work group. His comments were highlighted in the October 24, 1994 issue of the Community Investment Reporter. In addition, the Owned Real Estate Forum - A Concept Strategy was distributed at the conference as an innovative strategy for revitalizing neighborhoods.

WHAT'S NEXT?

After six months of operations, the NRRP has tested its ideas for neighborhood revitalization receiving excellent support from Federal, state and local municipalities, the banking industry and the community. We have refined our focus of objectives and are now positioned to expand the cooperative partnerships and implement the strategic revitalization efforts outlined within this report

The NRRP has received numerous compliments for its pioneering efforts to utilize foreclosed properties for neighborhood revitalization. This positive image was anticipated as a by-product of the programs objectives. It is now time for the program to become more publicly known. We recommend the development of news releases throughout New England and a brochure for increased awareness of the NRRP. First, any news release should begin with the NESC news letter informing FDIC (DAS & COMB) personnel of the program objectives and accomplishments. Building cooperative partnerships has been the foundation of the NRRP. We have been successful in this regard with Federal, state and local municipalities, the private sector and the banking community. Our biggest weakness for building cooperative partnerships lie within our own organization. Account officers are skeptical of the NRRP and generally uncooperative. Part of this can be attributed to the unrest of the downsizing and LG (liquidation grade) placement processing. This situation can be corrected simply through managements endorsement and promotion of the NRRP, and enlisting the account officers active participation in certain aspects of the program. Our account officers have a tremendous wealth of information and skills that would enhance the accomplishments of the NRRP. A proposal to tap there resources is outlined at the end of this section under staffing proposal.

Next, a news release should be prepared for the FDIC news, highlighting the NESC as a pioneer in the social commitment to our communities and our commitment to meeting the new corporate strategy outlined by Director Bovenzi earlier this year.

Effective and professional marketing material, including brochures and news releases, requires a special skill currently beyond the scope of the program's manager. We would look to utilize any internal resources or if necessary an outside firm to prepare the marketing material.
Now that CHFA is provided $5 million for financing FDIC property, the program needs to be promoted. Promotion needs to begin with informational meetings with all ORE marketing officers. CHFA is willing to participate in these sessions. Furthermore, CHFA qualified properties need to be advertised and a financing program information sheet needs to be provided to all FDIC real estate brokers (contractors). This set-aside program is an excellent opportunity for the FDIC to show, in a positive view, the general public, and our congressional critics, its commitment to aggressively disposing of its assets. Typically, the winter months are a slow time for real estate sale. Advertising further assist in our ability to overcome this seasonal lull. Assistance is needed to develop the appropriate advertising material and market strategy, preparing for customer phone inquires, presentation of necessary expenditure cases and coordinating efforts with COMB and the RTC.
The ORE forum, developed by the NESC, is now in a position to implement a strategic revitalization plan in five major cities within Connecticut. The target zones are generally identified and now require pulling together the resources necessary to accomplish the forum's strategic plan. Efforts have already begun in the city of New Haven with the FDIC participating in the Dwight Street Project. The goal is to complete the neighborhood plans for the five city and begin revitalization by spring 1995.
The NRRP has focused on the disposition of Owned Real Estate. Equally important is what can be done to prevent default mortgages from becoming foreclosed and, ultimately, becoming ORE. We have defined this objective as Intervention. The NRRP has considered several methods to address this issue and on two occasions made recommendations that have prevented the FDIC from an inevitable foreclosure. Other individuals within the Corporation share this concern and have proposed some innovative ideas. We recommend that the NRRP be granted permission to develop a strategy for intervention.
The symposium revitalization task force is in the process of finalizing its recommendation to Senator Dodd. A public hearing is planned for December 1994 to address the task force recommendations. This task force has been an important springboard to the NRRP's efforts in Connecticut. It is important the FDIC, as the initiator of this event, remain actively involved in not only the completion of the strategic plan, but its implementation.
Another significant issue within our city's neighborhoods, and a major barrier in the disposition of ORE is the environmental concerns. The FDIC, as appointed receiver, has been saddled with the enormous cost of environmental clean-up on its properties. This is an unfair burden for the insurance fund to carry alone. Federal, state and local municipalities should also make a contribution to the environmental cleanup for properties the FDIC assumes as receiver. The cost of abatement is an added impairment in marketing our properties and revitalizing neighborhoods. The FDIC does recognize the seriousness of the environmental issues, however, it can only address the problem with a minimal financial commitment compared to the enormous size of the burden. We believe that the FDIC needs to bridge a cooperative partnership between Federal, state and local municipalities to assist in funding the necessary environmental cleanup of FDIC receivership properties. The NRRP requests permission to develop a strategic plan for sharing costs of environmental cleanup. The environmental issue has been one of the primary issues in the ORE forum and the symposium task force. As a start, the symposium task force, through the environmental work group, have recommended new environmental legislation that redefines the current laws of mandating a "lead free" environment to a "lead safe" environment.
Property taxes are a major expense for the FDIC and can be a restrictive element in marketing property. The insurance fund becomes a victim of the system as the FDIC becomes receiver of ORE assets with delinquent taxes and over-assessed property values. We believe that the FDIC should pay "reasonable" taxes. However, a mechanism should allow for the FDIC and cities to re-establish value and negotiate past due taxes for properties at the time the FDIC becomes ORE or debtor-in-possession. The NRRP requests permission to develop a strategic plan, in cooperation with several key cities, which streamlines a mechanism for re-establishing property taxes at the time the FDIC becomes owner. This plan would be a model for the FDIC and other cities to adopt.
To date, the NRRP, although successful, has limited its resources to Connecticut. Massachusetts currently holds the largest number of ORE within the NESC's territory. Consequently, similar efforts need to be coordinated and initiated in Massachusetts. Several key personnel in the Westborough and Franklin office are actively involved in revitalization efforts on a local basis. We recommend the NRRP formally establish its activities in Massachusetts in cooperation with FDIC personnel from Westborogh and Franklin.

STAFFING PROPOSAL

In order for the NRRP to accomplish and implement these outlined objectives, staffing assistance is necessary. Understanding the current position of staffing within the FDIC, we propose that those tasks requiring staffing assistance be considered short term special projects, and be assigned to personnel who possess the knowledge and skills to accomplish the objective. The assistance needed by the NRRP would be short term assignments that have limited time demands. Therefore, these task could be performed in addition to an individuals current assignments. Additionally, these assignments are innovative and provide for creativity and diversity within one's regular duties. Any special projects would be overseen by the NRRP program manager. Through short term special projects, account officers can become more familiar with the program and provide valuable insight in accomplishing the NRRP's objectives.

[1] Hartford, South Brunswick, Franklin, and Westborough

[2] Consolidated Asset Recovery Corporation (CARC), Recoll Management Corporation (RECOLL), J. E. Roberts Co. of New England (JERNE), and Bank On New Hampshire Asset Management (BONHAM).

[3] Includes DAS, COMB and RTC Connecticut properties.

[4] Owned Real Estate Forum - A Concept Strategy, written by Roger Bird for the Connecticut Neighborhood Revitalization Task Force and the development of the ORE forum.

APPRAISALS - DETERMINING APPROPRIATE MARKET VALUE
Single Family and Condominium Residences

Lengthy marketing times are a symptom of an economically distressed community. By appearance alone, boarded up houses reduce the value of neighboring homes and accelerate the decline of neighborhoods. Boarded up properties invite vandalism and provide a haven for drugs, prostitution and other activities. Also, many properties require repairs to become habitable and may suffer from environmental problems (asbestos, lead paint, etc.). All of these issues negatively impact the value of the property and add to the marketing time.

Banks, Federal and state agencies, such as FDIC, HUD, CHFA, etc. all utilize appraisals as a primary basis for determining the property listing price and the basis for what the ultimate sales price is. Appraisals, although a reasonable basis for determining value, do not provide indisputable evidence of value.

Historically, the marketing approach for the sale of foreclosed properties has been "Appraisal Driven", that is, once a marketing sales price is established, usually at 110% of appraised value, any offer is evaluated strictly as a percentage to the appraised value. In other words, an acceptable sale price is "appraisal" driven as opposed to "market" driven. This creates two problems that add to lengthy marketing times:

Appraisals are normally updated annually. In economically distressed communities or neighborhoods, property values can change dramatically in a matter of months. Causes for these rapid declines include: vandalism, weather (particularly winter), vacancies, crime, etc. As properties or neighborhoods deteriorate, the value of the property drops significantly, however, the seller's approval process evaluates the sales price based only on the most recent appraisal in file. Before consideration can be given to a reduced price, a new appraisal must be in file to substantiate a sale price to meet percentage guidelines.
Foreclosed properties usually are in disrepair, especially in a distressed neighborhood. The most common appraisal approach for single family residence (1-4) is the comparable sale. However, the comparables used do not include similar foreclosed properties of banks, Federal or state agencies. The result is that the use of "normal sales" transactions tend to inflate the value of foreclosed property (even though adjustments are considered for condition of sale). Some appraisals use comparables with adjustments in excess of 50%. Although this is an attempt to balance the value for condition of sale, it is very subjective and does not take into consideration the stigma associated with institutional owned real estate or foreclosed properties.

Additional consideration needs to be given to the depth of the market, the stigma associated with ORE foreclosed property, and rapid changes in the local market to quantitatively determine an appropriate value.

Solutions:

Appraisers need to be directed to use comparable sales of similar foreclosed properties when determining value. For example, a occupied property sold under a standard transaction is not comparable with a boarded up foreclosed property in need of substantial repairs to become habitable. Each institutional owner ultimately disposes of their property. Records are usually kept noting property location, description, condition, marketing time, sale price, etc. This is an excellent source of information to assist in establishing appropriate values for similar properties.
Institute a market driven sales approach within our sales approval procedures. This would allow marketing officers to sell property based on appropriate adjustments to an existing appraisal to account for property deterioration and substantiated changes in the local market. These adjustments could be supported through inspection reports, broker opinions or an appraisers memo valuation updates.
The cost and lengthy processing time of obtaining new appraisals can be minimized by using appraisers valuation letters, valuation updates from the original appraiser, two broker opinions or a limited appraisal. The appraisal board adopted new standards in July 1994, for limited appraisals.

Prepared by: Roger Bird

SYMPOSIUM TASK FORCE - NEIGHBORHOOD REVITALIZATION

On July 11, 1994 a Connecticut wide task force was established to address the revitalizing of our inner-cities. The primary agenda was:

FORECLOSED PROPERTY:

ASSETS TO REBUILD OUR NEIGHBORHOODS

MISSION: To create a partnership between local communities, municipal, state and Federal governments, and lenders to formulate an action plan. The plan will be a comprehensive strategy to use properties as a tool for economic development and revitalization of neighborhoods.

GOALS:

To analyze and promote strategies that demonstrate how state and local governments can use foreclosed properties as a tool to support economic and social revitalization.
To identify barriers that exist in the current property disposition programs that inhibit cities and interested groups from purchasing properties.
To rethink and restructure the process for disposing of property in a more comprehensive planned manner in a coordinated effort.
To prepare an implementation plan by September, 1994, that will lay out the "Who, What, When, Where, Why, How, and Money" necessary to achieve the mission.

Three sub-committee work groups were established to analyze and develop an action plan on the following specific issues:

Financing and Marketing
Environmental and Public Safety
Property Appraisals, Municipal Property Tax Structures and Economic Development

The sub-committee members were comprised of a good cross section of mayors, environmentalists, non-profit sponsors and other state and Federal agencies. The most notable attribute of the sub-committees was the intensity of the participants commitment to the issues they were working on. The committees have completed their initial reports and the steering committee is now completing the final report for a public hearing to be held in December 1994.

CHFA AND FDIC
FORM COOPERATIVE PARTNERSHIP

The Connecticut Housing Finance Authority (CHFA) is a quasi-public organization whose programs are primarily supported through the private sale of Federal tax-exempt Mortgage Revenue Bonds. Their mission is to "help alleviate the shortage of housing for individuals and families with low and moderate incomes." CHFA provides mortgage financing at interest rates lower than those available through conventional means. Furthermore, CHFA offers a down payment assistance program and allows rehabilitation cost to be included in their mortgages.

CHFA's Board of Directors approved a $5 million set-aside of mortgage financing specifically for FDIC single family residences and condominium ORE type properties (includes DAS, COMB & RTC Connecticut properties). The set-aside is also designed to help CHFA achieve its 1994/5 goal of 3,000 home mortgage loans, including 1,000 mortgages in urban areas. The financing commitment expires September 30, 1995.

CHFA has committed its financial resources, advertising promotion and developed a streamlined application process to enhance the sale of FDIC properties. To assist in minimizing the buyer's closing costs, the FDIC will pay CHFA's one percent loan origination fee (a standard lenders fee) and the normal sellers cost through the net proceeds at closing.

This financing package is an enhancement to the FDIC's marketing efforts of 1-4 single family and condominiums. Although the majority of the available property is FDIC Affordable Housing (AHP), CHFA's income and property eligibility criteria is broader than the FDIC's AHP. Furthermore, many FDIC properties require substantial rehabilitation to be considered habitable. CHFA's financing allows for marketing property in rehabilitated condition. CHFA's financing is non-recourse to the FDIC. It is estimated that between forty to fifty properties could be financed under this program. Currently, the NESC and WBO hold 109 eligible single family and condominium units. Of these properties, 59% have been held for greater than one year. Furthermore, the NESC (AHP) is receiving an additional 60 properties from COMB contractors by October 31,1994. Awareness of this program will be marketed in cooperation with CHFA through a planned series of FDIC account officer informational meeting's, local news paper advertisements, flyers to sales brokers, and participating bank advertising.

OWNED REAL ESTATE - A Concept Strategy

Institutional owners of foreclosed properties share the common issues of management and disposition of their Owned Real Estate portfolios (ORE). Many of us are neighbors and don't even know it. The number of foreclosed properties within our inner cities is unprecedented. Foreclosed properties provide a resource for revitalizing our neighborhoods. The need for building cooperative partnerships between Federal, state and local municipalities, developers, the financing community and the institutional owners of properties is critical in this effort and the basis of this strategy.

IDENTIFYING CONNECTICUT'S FORECLOSED PROPERTIES

In order to develop a strategy of cooperative partnerships for rebuilding our neighborhoods, we must first identify the foreclosed properties throughout the state of Connecticut. Currently, there is no central or "master" source of foreclosed properties. Each institutional holder of ORE individually maintains a database of their portfolio's. Institutional owners encompass the majority of foreclosed properties. Other foreclosed property owners may include private individuals, small loan companies, or local investors. The primary institutional owners of foreclosed properties are:

Banks / Savings and Loans
FDIC / RTC
VA
HUD
CHFA
FHA
Insurance industry
Freddie Mac
Fannie Mae
Municipalities

A centralized, MASTER Database of all institutional owned foreclosed properties in the state of Connecticut is needed. The database should be user-friendly and contain the following information (as a minimum):

Reference Number
Property Type
Property Address
List Price
Property City
Owner
Property State
Contact Name
Property Zip
Contact Phone
Brief Property Description

Foreclosed Properties: include the traditional foreclosed property as a result of a defaulted mortgage and city properties acquired as a result of tax sales. Foreclosed properties are also referred to as: Institutional Owned or Owned Real Estate (ORE).

Equally important are those properties where mortgages are in default and about to be foreclosed on or properties within the foreclosure process. These properties, known as "LIMBO" properties, are difficult to identify. Areas of concern in identification include borrower confidentiality and absent owners.

Limbo properties: include properties where the owner cannot be identified or located, the property is within the foreclosure process or tied up in bankruptcy. Typically, Limbo properties fall in disrepair and become blighted. The owner (if identified) is either unable to maintain the property or unwilling to make any further investment. Furthermore, without title, the lender is unwilling to risk additional investment. The foreclosure process may further be delayed as a result of environmental issues. The lenders mortgage and environmental risk may far exceed the value of the property. These factors lead to owner and lender abandonment. A means of intervention must be developed to effectively deal with limbo properties.

A COOPERATIVE DISPOSITION SYSTEM

Once foreclosed properties are identified, a disposition system/method is needed to return the property to the private sector. Often, institutional owners are unaware of the marketing efforts by other institutional owners of neighboring properties and compete for the same buyers dollars. The disposition system needs to include:

Community outreach, source of buyers,
Money sources - streamline financing to address the needs of the revitalization effort,
Local municipalities support and involvement (financial, job training),
Facilitator- someone to coordinate the revitalization
Special "loans to facilitate" that meet the safety/soundness requirement of the lender

A database of foreclosed properties would be utilized for two purposes. First, to determine areas of concentrations of foreclosed properties within our communities. This will be accomplished through a database sort and mapping of each property by address. An example map of Hartford, Connecticut is attached. Those concentrated areas will become targeted zones designated for revitalization. And second, identifying those institutional owners of the properties within the designated zones. Once identified, the institutional owners of a concentrated area would then join together and form a "Neighborhood Revitalization Committee". The committee is responsible for identifying each property owner within the designated zone and implementing a strategic plan for revitalization. This report is not intended to detail a formal or legal structure for the neighborhood revitalization committee, however, the following is offered as a conceptual overview.

A joint venture of all institutional owners would be formed with voting rights equal to some percentage of participation (appraised value, capital contribution, square footage of property, etc.) as determined by the committee. The top three voting members, the city's mayor, and if possible, a neighborhood representative would form the leadership of the committee and be responsible for developing a strategy that would address the following issues: Population - concentration, open space, environmental, rehabilitation, demolition, new construction, marketing/disposition, financing, social services, local economic development, home ownership opportunities, transportation, health and safety, and community participation.

OTHER CONSIDERATIONS

It is recognized that intervention is also an important part of long range planning for institutional owners. However, specific solutions to identifying limbo properties and intervention is beyond the scope of this concept strategy. Limbo properties can be identified within the target zone of the established Neighborhood Revitalization Committee. Solutions for these specific properties would be incorporated within the overall neighborhood strategy.

Recognizing that some properties can be cost effectively restored, others pose an environmental risk or may be structurally unsound; being cost prohibitive for rehabilitation. In addition, a lower density or more open space may be needed for a neighborhood, therefore, demolition should not be considered a negative factor.

As neighborhoods are revitalized, consideration must be given to the net increase or decrease of the neighborhood population. For example: should a neighborhood require less density, adequate housing must be determined and planned for outside the designated zone within the revitalization strategy. If non-productive buildings are added to an area, consideration should be given to the areas in which people will migrate from. Newly blighted areas could be a result of improving some neighborhoods.

Drugs, crime and protection of property during construction and the selling of homes is critical in stabilizing a neighborhood as being safe. This will enhance the attraction and livability of the neighborhood and adds a key element for success to any revitalization efforts.

Prepared By: Roger Bird



Professional Summary \|\| International CV \|\| Private sector CV \|\| Project Highlights \|\| Download CV