Urban Land Banks - Condominium Acqusitions?
Hello, we are researching Urban Land Banks and have noticed that they are primarily directed towards single family foreclosed, vacant, or abandoned properties. We are looking for similar public funding programs or strategies that allow condominiums and townhome properties to be included in the programs and leased to affordable/workforce families.
We have a number of situations where the City percieves a decline in specific condominium properties (based on code violations, tax delinquencies, etc.). These were garden apartments built in the 60's that were condominiumized in the 80's. Of course, the City's traditional role is comprehensive code enforcement to ensure the complex stays up to code, but often these properties can result in condemnation if the HOA and owners do not keep up the complex.
The City wants to identify proactive ways to work with an Authority to patiently acquire condominium units and lease and manage the units for affordable families. As units are acquired, and a majority of the complex is owned/controlled by the Authority (which could require several years) the complexes will have long outlived their useful life. During this time, planning could be made for workforce housing strategy and construction of new affordable housing, either on the property, or in an alternate location in the City. Is anyone aware of case studies or public funding mechanisms that address this strategy specifically for declining condominium or townhome developments? I can clarify points if needed.
We have a number of situations where the City percieves a decline in specific condominium properties (based on code violations, tax delinquencies, etc.). These were garden apartments built in the 60's that were condominiumized in the 80's. Of course, the City's traditional role is comprehensive code enforcement to ensure the complex stays up to code, but often these properties can result in condemnation if the HOA and owners do not keep up the complex.
The City wants to identify proactive ways to work with an Authority to patiently acquire condominium units and lease and manage the units for affordable families. As units are acquired, and a majority of the complex is owned/controlled by the Authority (which could require several years) the complexes will have long outlived their useful life. During this time, planning could be made for workforce housing strategy and construction of new affordable housing, either on the property, or in an alternate location in the City. Is anyone aware of case studies or public funding mechanisms that address this strategy specifically for declining condominium or townhome developments? I can clarify points if needed.
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Replies to This Discussion
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Permalink Reply by Will Clark on -
Is the City/PHA looking to deal directly with unit owners in these older condos, or are they looking to do a deal with the HOA? Is code enforcement merely a way to locate potentially distressed condos or is it a slightly stronger lever?
It seems that if the PHA starts paying the HOA fees that some owners are not paying, that stabilizing the HOA will not encourage other owners to sell.
Regardless, I think there's a great idea in here and would like to learn more about this. -
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Permalink Reply by Will Reed on
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The City is possibly looking to deal with the individual owners (some own multiple units), and/or the HOA Board. Using an intermediary (either public or private) entity to interact is being considered. Methods to incentivize a private partner to undertake the acquistion/management/holding process are being evaluated.
The area (and properties) have already been identified, as they have been problematic over the past several years as the condominium units have increasingly become investor owned units.
The City is trying to identify funding sources for these properties which are in decline and are considered blight. Urban Land Banks are often directed towards acquistion of single family properties for resale to either PHAs or for-profit developers to rehabilitate or redevelop for low to moderate income users. We cannot find any programs which focus on multi-tenant properties (either condos or townhomes) that meet simliar characteristics (foreclosure, tax liens, or abandonment). CDBG funds also have some restrictions in this regard. -
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