Page 59 – Safeguard Properties

City Leaders Launch New Legislation to Combat Vacant Home Crisis

Posted on May 8, 2023 by Safeguard

Industry Update
April 28, 2023

Boarded-up windows, crumbling foundations and falling siding. That’s what some people see along parts of Hudson Avenue.

According to the city’s vacant property management website, the northeast section has the biggest number of vacant homes.

“Some people have as much business being a landlord as I have piloting a space shuttle,” Mayor Malik Evans said. “They shouldn’t be in the business.”

Three homes on Hudson Avenue are all shown to be owned by the same local LLC.

All of them have been left vacant and falling apart.

“We have also added language to various provision of our code that require owners, who own in the name of limited liability corporations (LLC), which is a very common practice, to identify the individuals behind that entity,” said Linda Kingsley, corporation counsel for the city. “This may not be a popular proposal for some landlords.”

Evans, alongside other city leaders, announced three new pieces of legislation Friday targeting property issues.

One measure would establish a vacant building registry that would take effect next year.

“This registry will require property owners to alert the city if the building they own remains vacant for more than 60 days,” Evans said. “As we all know, the city is facing a growing vacant building crisis. These buildings by their very nature present significant potential health and safety hazards to their neighborhoods, to city employees and the general public.”

The second piece establishes a landlord/tenant bill of rights that would take effect in August.

“I believe this bill of rights will be an essential step to addressing the housing concerns we have here in Rochester,” Evans said. “It’s critical that all sides clearly understand their responsibilities.”

The third measure would raise fines for code infractions and authorize the city’s corporation counsel to seek fines and penalties when taking legal action against a property owner.

“The message needs to be sent that should you refuse to address your violations and force us to take legal action, there will be stiff and very expensive penalties,” said Kingsley.

The legislative proposals will be considered by City Council at its May 23 meeting.

For full report, please click the source link above.

Newburgh Land Bank Receives $1.8 Million Grant from State

Posted on May 8, 2023May 8, 2023 by Safeguard

Industry Update
April 29, 2023

Source: Mid Hudson News

The Newburgh Community Land Bank has been awarded $1.8 million by the Housing Trust Fund Corporation and State Homes and Community Renewal. The funding was granted after a competitive application process open to all New York State Land Banks as part of the Land Bank Initiative Phase II.

The nonprofit organization partners with city government to strengthen the community by acquiring, stabilizing, and facilitating the redevelopment of blighted and abandoned properties, returning them to productive use, and growing local property tax bases.

The Newburgh Land Bank will be investing the monies in several projects in its North of Broadway target neighborhood, particularly on Lander Street, South Miller and surrounding streets, where the land bank has already reactivated over 100 buildings and vacant lots.

“This funding will afford us the opportunity to recharge our efforts to revitalize the City’s vulnerable housing stock, while adding new housing to long-dormant lots,” said Lisa Daily, land bank chairwoman.

For full report, please click the source link above.

City Council Members: Demo 200 Program has a Place in Aiken

Posted on May 8, 2023 by Safeguard

Industry Update
May 2, 2023

Source: Aiken Standard

The suspended Demo 200 program has a place in Aiken according to five members of Aiken City Council.

The city council established the program in 1999. It allows residential property owners to pay the city $200 to have a “dilapidated, uninhabitable structure” demolished and removed from their property and retain the land.

City Manager Stuart Bedenbaugh said in a memorandum to city council that the city has the option to use federal Community Block Development Grant funds provided by the federal Department of Housing and Urban Development to demolish the structures if the structures are located in a low- or moderate-income area.

In 2020, city council amended the program to include an option for non-residential property owners to pay $2,000 to have a “substandard” structure demolished and removed.

The section of the city code allowing non-residential property owners to have structures demolished also includes provisions requiring the non-residential property owner to have owned the property for two years and that the cost of the demolition is a loan of up to $20,000 that is forgiven by the city over a four-year period. If the non-residential property owner sells the property before the loan is forgiven, the balance comes due.

The 2020 amendment also allows the city manager to waive the requirements of the non-residential property program for a nonprofit organization that is necessary to provide community services. It also establishes that repeat applicants for the residential demolition program fall under the non-residential property provision.

Bedenbaugh said 20 structures have been demolished under the program since 2019 including nine in 2019, two in 2020, six in 2021, two in 2022 and one in 2023.

He said he suspended the program Feb. 28, 2023 in accordance with a request from council to study the program and discuss its future at later meetings.

Monday evening, five members of city council participated in the first of those meetings: a tour to view structures that could be demolished through the program. The council also heard from code enforcement personnel with the city and spoke to the neighbors of the properties with a structure that could be demolished under the program.

For full report, please click the source link above.

Funding Helps Trotwood Blighted Property Demolition Plan

Posted on May 8, 2023 by Safeguard

Industry Update
May 2, 2023

Source: wdtn.com

The City of Trotwood continues its push to demolish blighted properties. Officials say the work would not be possible without help from the state and the Montgomery County Landbank.

Through this collaborative effort, they have been able to cover more ground in just a year of the project, tearing down nearly three dozen buildings so far.

The state of Ohio is covering 75 percent of the cost to demolish 35 blighted properties throughout Trotwood.

The Montgomery County Landbank is paying half of the remaining 25 percent. Landbank officials said that Trotwood consistently shows up when offers like this are on the table.

“Each time we’ve offered a program like this, Trotwood has been at the table to take advantage of it,” Mike Grauwellman, Montgomery County Landbank Executive Director, said. “So, kudos to the Trotwood community, folks, in identifying those and doing the work that they need to do to allow us to do the work that we are financed to do by the state.”

Trotwood officials said they are grateful for this funding because it aids in the housing crisis that was heightened in 2019 with over 1100 properties damaged by the Memorial Day tornadoes.

“We want to reestablish that sense of pride and that sense of hope people have,” Kellum said. “We want to create more housing. We want to infill the backstop. We want to have our residents return. We still have residents who have been displaced because of the 2019 tornadoes. So, until we have all of that housing replaced, our population suffers.”

For full report, please click the source link above.

FEMA Major Disaster Declaration – Alabama Severe Storms, Straight-line Winds, and Tornadoes

Posted on May 6, 2023 by Safeguard

FEMA Alert
May 5, 2023

FEMA has issued a Major Disaster Declaration for the state of Alabama to supplement state, tribal and local recovery efforts in areas affected by severe storms, straight-line winds, and tornadoes from March 24-27, 2023. The following areas have been approved for assistance:

Public Assistance:

Chambers
Colbert
Coosa
Elmore
Lauderdale
Macon
Marion
Morgan
Randolph
Tallapoosa

Alabama Severe Storms, Straight-line Winds, and Tornadoes (DR-4710-AL)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for the State of Alabama

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Ginnie Mae Shares Further Details on the LIBOR Transition of LIBOR Classes of Ginnie Mae Multiclass Securities

Posted on May 4, 2023 by Safeguard

Industry Update
May 1, 2023

Source: Ginnie Mae

With the publication of Multiclass Participants Memorandum (MPM) 23-01, Ginnie Mae announced it will transition all outstanding LIBOR Classes of Ginnie Mae Multiclass Securities after June 30, 2023, to CME Term SOFR plus tenor spread adjustment in accordance with the Adjustable Interest Rate (LIBOR) Act (LIBOR Act) and the related regulations, and the recommendations of the Alternative Reference Rates Committee (ARRC).

In July 2017, the United Kingdom’s Financial Conduct Authority (FCA) announced that it would no longer persuade or compel contributing banks to submit rates used to calculate London Interbank Offered Rate (LIBOR) after December 31, 2021. On March 5, 2021, the Intercontinental Exchange (ICE) Benchmark Administration Limited (IBA) announced that it intended to cease publication of the overnight and one, three, six and twelve-month USD LIBOR immediately following the LIBOR publication on June 30, 2023.

Congress passed the LIBOR Act as part of the Consolidated Appropriations Act, 2022 (Pub. L. 117-103), in part, to create a clear and uniform process for replacing LIBOR in existing contracts where the terms do not provide for the use of a clearly defined or practicable replacement benchmark date, without affecting the ability of parties to use any appropriate benchmark rate in a new contract. Generally, for existing LIBOR-based ARMs without language providing for a specific replacement index, the default replacement index will be a spread-adjusted term rate based on the SOFR, as provided under the LIBOR Act.

The ARRC, in its Best Practices last updated on May 4, 2022, recommended the use of Term SOFR rates published by the CME Group Benchmark Administration Limited (CBA) plus the applicable spread adjustment as a fallback for legacy LIBOR adjustable-rate mortgages and the use of SOFR averages for new originations. Ginnie Mae has chosen to follow ARRC’s best practices recommendation.

Ginnie Mae will publish additional Participant Memoranda relating to the LIBOR/SOFR transition in the coming weeks.

For full report, please click the source link above.

Federal Reserve Issues FOMC Statement

Posted on May 4, 2023 by Safeguard

Industry Update
May 3, 2023

Source: The Federal Reserve

Economic activity expanded at a modest pace in the first quarter. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated.

The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks.

The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 5 to 5-1/4 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy. In determining the extent to which additional policy firming may be appropriate to return inflation to 2 percent over time, the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in its previously announced plans. The Committee is strongly committed to returning inflation to its 2 percent objective.

In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on labor market conditions, inflation pressures and inflation expectations, and financial and international developments.

Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lisa D. Cook; Austan D. Goolsbee; Patrick Harker; Philip N. Jefferson; Neel Kashkari; Lorie K. Logan; and Christopher J. Waller.

For full report, please click the source link above.

FEMA Major Disaster Declaration – Florida Severe Storms, Tornadoes and Flooding

Posted on April 29, 2023 by Safeguard

FEMA Alert
April 27, 2023

FEMA has issued a Major Disaster Declaration for the state of Florida to supplement state, tribal and local recovery efforts in areas affected by severe storms, tornadoes and flooding from April 12 – April 14, 2023. The following areas have been approved for assistance:

Individual Assistance:

Broward

Public Assistance:

Broward

Florida Severe Storms, Tornadoes and Flooding (DR-4709-FL)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Florida

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

FEMA Major Disaster Declaration – Nevada Severe Winter Storms, Flooding, Landslides, and Mudslides

Posted on April 29, 2023 by Safeguard

FEMA Alert
April 27, 2023

FEMA has issued a Major Disaster Declaration for the state of Nevada to supplement state, tribal and local recovery efforts in areas affected by severe winter storms, flooding, landslides, and mudslides from March 8 – March 19, 2023. The following areas have been approved for assistance:

Public Assistance:

Douglas
Eureka
Lincoln
Lyon
Mineral
Storey

Nevada Severe Winter Storms, Flooding, Landslides and Mudslides (DR-4708-NV)

President Joseph R. Biden, Jr. Approves Major Disaster Declaration for Nevada

Map of Affected Areas

List of Affected Zip Codes

Additional Resources

FEMA’s web site

FEMA’s Disaster Declaration Process

Safeguard Properties Industry Alerts

HUD Moratorium on Foreclosure

VA’s Policy Regarding Natural Disasters

Freddie Mac Disaster Relief Policies

Fannie Mae’s Natural Disaster Relief Policies

Delaware County Land Bank Policies Up for Review

Posted on April 26, 2023April 26, 2023 by Safeguard

Industry Update
April 25, 2023

Source: www.mychesco.com

The Delaware County Redevelopment Authority (DCRDA) announced it is soliciting feedback on the proposed policies and procedures for the Delaware County Land Bank. The Delaware County Redevelopment Authority became the appointed authority for the Delaware County Land Bank in 2022.

Land Banks are intended to reduce blight and spur economic development by transferring properties that are vacant, abandoned, and tax delinquent back to productive use in alignment with community goals and through creative leadership that engages key partners to leverage resources. The Delaware County Land Bank will prioritize strategic development for vacant and abandoned properties in the county. DCRDA has priority bidding at real estate tax sales, a streamlined process for lien discharge, and the ability to expedite quiet title proceedings.

“The County’s new land bank program gives us one more tool for improving our local communities by acquiring, redeveloping and returning blighted property to productive residential, recreational, commercial and industrial uses for our residents,” said Delaware County Council Vice Chair Elaine Paul Schaefer. “That return to a productive end use also returns properties to the tax rolls and reduces the tax burden shared by the residents of the community.”

The proposed policies and procedures will govern the administration and activity of the Land Bank in Delaware County. The policies cover the acquisition, disposition, and conveyance of properties and public input and communication. They will be reviewed at least every other year by the DCRDA Board of Directors.

For full report, please click the source link above.