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untanglingwebs
El Supremo
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Another View: Myths about Genesee County Land Bank abound; here are the facts
Published: Sunday, January 30, 2011, 5:48 AM Updated: Sunday, January 30, 2011, 6:08 AM
By Community Voice | Flint Journal Letters
During the campaign for Genesee County Treasurer, I heard many complaints about the Genesee County Land Bank. I now serve as the chairperson of the Genesee County Land Bank Authority. As you can guess, I have followed up on the complaints I heard and have found that many of those complaints are repeated misconceptions, which have become common myths about the Land Bank. I hope to dispel these misconceptions here.
• Myth 1: The Land Bank sits on valuable property and won’t sell it. Since the Land Bank was established, over 3,900 tax-foreclosed properties have been sold — over 1,600 at public auction and nearly 2,300 through the Land Bank’s sales operations. Our sales figures speak for themselves.
However, some see the number of properties that are in the Land Bank’s inventory and say we must be quashing sales. The fact is that most properties that are tax-foreclosed have been abandoned for some period of years and are in such poor condition, it is likely they won’t be inhabited any time soon. Of the roughly 6,800 properties we are currently managing, over 4,100 are vacant lots in highly abandoned areas. There is simply no market for many of these properties. Of the remaining properties, about 400 are abandoned industrial and commercial properties. Many of these are environmentally contaminated or so dilapidated they need to be demolished. Of the remaining 2,300 residential structures, most have been stripped of any value and should also be demolished.
The sad fact is that there are many reasons people stop paying taxes and walk away from property.
• Myth 2: The Land Bank is the largest slumlord in Genesee County. The Land Bank follows local ordinances on rental properties. For example, in Flint, every rental property that the Land Bank has is registered with the city, brought up to code and made habitable. We are constantly working with our tenants to make necessary repairs and to keep the properties up to code.
That said, we do have a lot of property that comes to us in such poor condition it will ultimately need to be demolished. To that end, we have already demolished nearly 1,300 houses and through the Neighborhood Stabilization Programs (NSP) in Flint and the out-county, we will demolish nearly 800 more in the next two years. Through our weed- and trash-abatement efforts, the Land Bank removed over 1,500 tons of trash from abandoned properties in 2010 — that’s 3 million pounds of trash. Through a partnership with the City of Flint, the Land Bank cut grass and weeds and picked up trash on more than 18,000 abandoned properties — even though we only own about one-third of those. As much as any property owner, the Land Bank has been the victim of illegal dumping and of thieves who have stripped copper, aluminum siding and any fixtures of value left in the homes.
• Myth 3: Every abandoned property belongs to the Land Bank. In 2009, we estimated that there were 18,000 abandoned properties in the City of Flint alone. Of those, the Land Bank had control of about 5,500 — less than one in three properties. When we get calls from people about properties in need of maintenance, we typically find that about one in three is owned by the Land Bank, while two out of three are owned by banks, mortgage companies or, in most cases, private property owners who simply walked away from their responsibilities. As people walk away from these abandoned properties, in future years the Land Bank will surely see more of them coming into our inventory.
• Myth 4: The Land Bank is devaluing other rental properties. There are landlords in the area who have suggested that the Land Bank undercuts the rental market by charging too little in rent. Since the Land Bank has at most 100 rentals at any given time among the total of about 20,000 rental units in Flint, we hardly have that kind of influence in the market.
Recently the Genesee Landlords Association asked to see our rental list and the rates we charged. After their review, they concluded our rental rates were comparable to those of other landlords in the area. The more important factor is not how many rental properties the Land Bank leases to residents, but how many first-time homeowners we have created. The Land Bank has sold nearly 500 homes to first-time homeowners on land contracts. The average monthly payment is about $200, and the term of the loan is generally five years or less, making these homes affordable for even the lowest wage earners in the area. Once a family establishes a payment history on one of our rental properties, we work with them so they can purchase the property and begin accruing equity in their own home.
• Myth 5: The Land Bank keeps properties off the tax rolls, costing local units tax dollars. The way that properties come to the Land Bank is that private owners have stopped paying their taxes and walked away from the property. These properties were not generating taxes for at least two years prior to them being foreclosed. If anything, our efforts to sell properties and get them back on the tax rolls results in local units benefiting from additional taxes they would likely not be receiving if the properties were to have gone to the state. That’s how the foreclosures were handled before the county opted to become the foreclosing governmental unit. Since the Land Bank was formed, we have put more than $10 million worth of property back on the tax rolls through our sales operations.
I hope this information is helpful to those who have had questions about the Genesee County Land Bank Authority.
– Deborah Cherry is the Genesee County Treasurer and chairperson of the Genesee County Land Bank Authority. |
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Sun Jan 30, 2011 6:12 pm |
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untanglingwebs
El Supremo
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untanglingwebs
F L I N T O I D
By Dan Kildee
Fifty-eight Flint houses, bought for a total of $25,350 at a “scavenger sale” auction last November, found their way onto eBay this month.
The winning bid of $92,800 will, if the transaction is successfully completed, transfer ownership of the now-vacant properties from an Illinois investment company to the hands of an unknown Internet buyer.
Those investors will have made a tidy profit. But there’s no way to know what, if anything, the new owners have planned for the empty homes. We can only hope that whoever ends up owning these properties won’t let them fall into the same kind of disrepair that gave us landmark eyesores like Genesee Towers and the old Durant Hotel — in its former condition.
This deal is, in short, a disaster waiting to happen. But it didn’t have to be that way, and we can stop it from happening again if the Legislature acts.
Michigan law currently requires these no-minimum-bid “scavenger sale” auctions, as part of the process for dealing with tax-foreclosed properties. If a property does not sell at a first, standard auction, with guidelines for minimum bids and other safeguards, it is dealt with in a second auction, one where the county has to accept the highest bid no matter what.
At one time, this approach might have made sense, ensuring that the properties brought in at least some small amount of revenue. But, in this market, no good is coming from such a system. Instead, it produces profits for outside speculators and does little to ensure that the properties will be used productively.
Today, we have a far better alternative in place: the Genesee County Land Bank.
As things stand now, tax-foreclosed properties come under the control of the Land Bank when the second auction fails to produce a bidder. But, since its creation in 2004, the Land Bank has proved that it can make good decisions about how to deal with these properties, keeping them out of the hands of speculators and, whenever possible, returning them to local ownership and some kind of productive use.
The Durant Hotel is one example. The Land Bank acquired it in 2005, after the building had stood vacant for 37 years, and then set about securing government, foundation and investor financing to bring it back to life. Thanks to the Mott Foundation, the Land Bank and other partners, the grand reopening last September was a cause for celebration.
In its seven years of existence, the Land Bank has received thousands of properties, and has managed to demolish nearly 1,300 of those abandoned houses, many of which would still otherwise be in the hands of speculators — like the “unknown” Ebay buyer.
Even more impressively, Land Bank finds new, permanent owners for about 400 properties a year — over 2,300 to date. And because the Land Bank is careful to set responsible, manageable terms for those sales, the default rate on those transactions is a miniscule 5 percent.
It is time for the state Legislature to remove the second auction requirement from the books and empower the Land Bank to take control of properties that cannot be sold in a standard auction.
To be sure, the Land Bank is not a cure-all for the many challenges facing our city. It has faced its own problems in dealing with the large number of vacant properties currently under its control. But even though it might sometimes seem easier just to auction off all the tax-foreclosed properties to the speculators and hope for the best, we know this is not the responsible approach. After all, that was the system the Land Bank replaced. It was a miserable failure.
The Land Bank isn’t perfect, but it is in the best position to make decisions that are in the long-term, best interests of Genesee County.
And it sure beats watching our hometown being auctioned off, piece by piece, over the Internet.
– Dan Kildee was formerly the treasurer of Genesee County and the chairman and chief executive officer of its Land Bank. Currently, he is the president of the Center for Community Progress, a nonprofit group based in Flint and Washington, D.C., dedicated to revitalizing and reinventing American cities.
Sun Jan 23, 2011 11:08 am |
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Sun Jan 30, 2011 6:14 pm |
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theboyzmom
F L I N T O I D
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| So many of Cherry's statements make me angry that I do not know where to begin. She is a consummate politician. She says pretty words that are carefully crafted to fudge on facts. For instance, the statement that GCLB owns less than one in three abandoned properties but keep them up is immediately followed by the comment that one in three calls is a complaint about their properties. So obviously, they get more complaints about their properties than the average abandoned property. This is followed by a statement that they keep their properties up to code and habitable. Both of these can not be true. If they are truly following all the codes a private person must follow, they would get very few complaints. And if the LB wants, and does, to follow all the rules why have they made themselves EXEMPT from all rules and codes? The dichotomy is amazing to me. Yet many people swallow this BS hook, line and sinker and ask for more. So sad. |
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Mon Jan 31, 2011 9:09 am |
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Dave Starr
F L I N T O I D
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Comments on the article.....
DWCBOB January 30, 2011 at 8:00AM
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Deb, you forgot to mention the FACT that the land bank is exempt from the blight ordinances. In our neighborhood, the worst trash strewn properties by far are the land bank owned ones.
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bobjgumby
bobjgumby January 30, 2011 at 8:36AM
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I love how you completely ignore this FACT, " the Land Bank removed over 1,500 tons of trash from abandoned properties in 2010 — that’s 3 million pounds of trash." Perhaps if you and your neighbors would stop illegally dumping crap on their properties there wouldn't be that much trash strewn about their properties.
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DWCBOB
DWCBOB January 30, 2011 at 6:21PM
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I hope you have proof of your accusations, gumby. Or, are you the same person that told me to do it myself when I asked land bank personnel if their overgrown properties on Proctor Ave. could be mowed, since the grass & weeds were over 3ft tall.
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flintastic
flintastic January 30, 2011 at 8:36AM
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anything ran by Democrats is EXEMPT from any rules or laws!!! "duh"!!!DWCBOB
and by the way some how they will find some overhead! Its got to be profitable to THEM!some how most likely they will infulence something to work out $$better$$ for a donor to their election camp.or someone willing to give them a personal gift!! vote DEB!
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FREEDOMOFTHEPRESS
FREEDOMOFTHEPRESS January 30, 2011 at 8:41AM
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It is a fact: The land bank is a worthless blight on society that impedes progress.
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bmukkamala
Bobby January 30, 2011 at 9:00AM
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It's a fact: Despite a direct answer to many of the myths that circulate on MLIVE regarding the land bank, people like freedom fighters, and dwcbob have no interest in the facts and merely will continue to propagate misinformation.
Nice work DEB
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mrblond
mrblond January 30, 2011 at 10:17AM
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What Bobby said.
Appreciate the attempt to get out information Ms. Cherry, but don't be surprised when the people with their hands over their eyes and fingers in their ears continue to spout the same, inaccurate crap that fits with their biases and ideology, facts be dammed.
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kevinmckague
kevinmckague January 30, 2011 at 12:00PM
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Agreed. I didn't get the freedom fighter part, but Bobby is right.
Keep up the good work Deb!
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flintstonerunner
flintstonerunner January 30, 2011 at 1:08PM
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Cherry will do anything to keep her job. Land Bank is a waste of government money. She can’t justify her rate on return when they spent apprx. $65,000 – $75,000 per house that cost approx. 15,000 to be demolished.
FLINT NEEDS A CHANGE and putting a Cherry on top won't solve the issue.
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detachedview
detachedview January 31, 2011 at 9:33AM
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They cost that much to demo due to regulations in their federal grant that overinflate wages and make the disposal of lead based paint and asbestos prohibitively high. Blame Uncle Sam if you will, but better the money be spent and some progress made.
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marklemon
marklemon January 30, 2011 at 1:38PM
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Flintstonerunner - with all due respect, you're speaking on opinion - not on facts. The fact is that Federal Government grants come with strings attached.
For example, a typical grant will stipulate that in order to get dollars for demolition, you have to spend a percentage of those dollars for rehab. If the Land Bank doesn't follow through with the rehabs, they have to pay the entire grant back.
Privately Land Bank officials will tell you they aren't happy with the "strings" that come attached to Federal Grants, but the alternative would be no money for demolitions at all.
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ANTIAV
ANTIAV January 30, 2011 at 1:38PM
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65 k to demolish a house? burn it.. free.. clean it up.. what maybe 3k..if that.
of course I have absolutely no clue what im talking about.
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ickym
ickym January 30, 2011 at 1:49PM
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Thanks Deb and also thank you flintstonerunner for asking the correct question regarding the cost of all this effort. Now, specifically, "what is the value added? Has anyone figured out the avg. cost to tear down a home?, take the remains away?, landscape the remaining yard?, and cost to rehab an existing home that has a chance of survival with some work?."
Next question is, "how many un-employed Flint natives has been used in any of these efforts?" I hope that many have. We need to get people working and get them off the welfare rolls. I hope that as part of this effort there is good training so they can start businesses and employ others who need jobs.
I look forward to seeing the reponse. I asked for this information 7 years ago, but somehow it wasn't made available. I was trying to start a high school training program for those kids who were interested - evidently no one was. Maybe you younger types can get something going. It is another way to stop crime.
I also suggested homesteading the sale of homes like these. You sell the home for a hundred dollars and give the owner one year to make it completely liveable. Could get anyone interested in that effort either. It has been very successful in other cities. The landbank should really look at this effort. Try Baltimore, Maryland if you want details.
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DWCBOB
DWCBOB January 30, 2011 at 6:25PM
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There sure are a lot of land bank employees posting here.
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detachedview
detachedview January 31, 2011 at 9:37AM
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Don't know if they are employees of the Land Bank or not, but they are the only ones not spouting off based on misperceptions. Man, it is really amazing how far people can run with just a little bit of information.
kelsey January 30, 2011 at 6:25PM
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Unemployed Flint natives never work on any of the projects--both construction and demolition--that I have seen going on in Flint. Those working are companies with guys from Grand Blanc, Davison, or smaller towns farther away. Believe it or not, some of these Flint thugs could be trained. Some of the older ones really want to work. Meanwhile fully functioning employed/retired Flint residents with steady incomes are forced to flee from habitable homes due to lack of police protection. People don't "walk away" from their responsibilities--they RUN away from waves of assault from the north. Home invasion, car-jackings, harassment, drug-dealing, general unpleasantness and proliferation of thug culture. As the dominoes fall, the Land Bank can't keep up.
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deelee39
deelee39 January 31, 2011 at 12:23AM
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Having made a life-long living off of taxpayers I wouldn't expect ol' Deb to argue against the democrat mantra of "I'm from the government and I'm here to help"......
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https://www.google.com/accounts/o8/id?id=AItOawmCDWEDmS_PEmOp5_tRTwJmIwbNzcdE2FE
jwilly48519 January 31, 2011 at 1:27AM
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Thanks for the report, Ms. Cherry. It was predictable that the malcontents wouldn't be impressed, but it's helpful nonetheless. |
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I used to care, but I take a pill for that now.
Pushing buttons sure can be fun.
When a lion wants to go somewhere, he doesn’t worry about how many hyenas are in the way.
Paddle faster, I hear banjos. |
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Mon Jan 31, 2011 9:39 am |
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untanglingwebs
El Supremo
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Myth 1- Land bank is sitting on some properties and won't sell.
Response: True and that came from the formerTreasurer. There are properties that the Land bank believes have a future development value and they refuse to sell them. Also I have been in meetings where residents in reasonably stable north end neighborhoods have been denied the opportunity to buy lots next to them. So I guess your figures don't speak for themselves. Also, how many were sold in auctions.
At one time the land bank would only demolish 75 houses per year in Flint. You must be showing the number of houses demolished the entire time in existance and you don't break it down by flint versus the outcounty. More were torn down when we had funding to pay half of the demolition costs.
Flint can't charge the county for violations on their properties. In the past Flint has gone out and remedied some of these properties because the land bank said they did not have the money. And some councilpersons bragged they got better services while they were in council meetings.
Kildee was angry when Williamson bashed the land bank but then he refused to keep all of his agreements with Williamson. At one point the majority of calls to the mayors office involved land bank properties.
Last edited by untanglingwebs on Thu Feb 03, 2011 7:02 am; edited 1 time in total |
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Wed Feb 02, 2011 1:13 pm |
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untanglingwebs
El Supremo
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I actually know of properties the land Bank owns that were not maintained. Also I know individuals who had the land bank refuse to maintain properties that were next door to land Bank properties. They seemed to pick and choose their neighborhoods.
The city responded to many severe instances of problems with land bank properties.
Last edited by untanglingwebs on Thu Feb 03, 2011 7:03 am; edited 1 time in total |
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Wed Feb 02, 2011 1:26 pm |
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untanglingwebs
El Supremo
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Kildee is right about one thing and that is the issue of property belonging to banks, mortgage companies and REOS that sit vacant and unmaintained. There is a national vacant property organization with solutions used by other communities. register these properties and charge a fee for registration. Implement ordinances that address the lack of maintenance and have penalties up to the forfeeeiture of the property.
many of these owners don't pay the taxes and let the neighborhood suffer .
Cherry obviously has not read the documents produced under Kildee by the Genesee Institute. Kildee even spoke of the cost of vacnt properties on the neighborhood versus the impact of a maintained vacant lot. |
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Wed Feb 02, 2011 1:40 pm |
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