Mayor’s Land Recycling Task Force

Mayor’s Land Recycling Task Force

• Mayor’s Land Recycling Task Force

• Meeting III

• Thursday, September 30, 2010

• 2 p.m. – 4 p.m.

Land Recycling

• 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……….

Find Revenue to Dedicate to Land Recycling

• 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

MI OH PA

• 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

Modernization Trends-Cost/Time Efficiencies

• 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

Dedicate particular revenue streams

• 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

Next Land Recycling Task Force Meeting:

• 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