Land Banks May Soon Claim Blighted Properties

Industry Update
July 21, 2023

Source: therecord-online.com

In the fight against blight, neglectful property owners may soon feel more pressure to clean up their act – or else lose control to a land bank.

House Bill 1163, now awaiting action in the Senate, would let municipalities take a “use it or lose it” approach to blight. Once a locality declares a property blighted or abandoned, it could then be deemed liable to be acquired by a land bank.

Property owners could appeal, and land banks would not be required to claim the properties, but the reform would put more pressure on landowners – who create an external cost to a municipality and drive down neighboring property values – to comply.

“It is my hope that this jolt to the arm will be the momentum needed for neglectful owners to use a property, sell a property, or redevelop a property,” Rep. Abigail Salisbury, D-Braddock, wrote in a legislative memo. “We need to hold absent and neglectful property owners accountable and give municipalities more ways to reuse and redevelop land.”

Braddock has struggled with its blighted burden for years. The borough released a blight strategy plan in 2017 that estimated almost 11% of its housing was blighted, with another 12% of housing units below average. In 2022, a fire leveled a set of blighted rowhomes and longtime residents complained of lip service from officials to address the problem, but no action.

Neighboring North Braddock has about 350 abandoned properties as well.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Pittsburgh City Council Advances Bill to Help the Land Bank with New Conditions

Industry Update
July 26, 2023

Source: wesa.fm

After months of debate and public input, Pittsburgh City Council advanced an agreement Wednesday designed to make it easier for the city’s land bank to return more vacant and distressed property to active use. The agreement governs how the city, the Urban Redevelopment Authority, and the land bank work together to transfer and sell blighted properties.

But the version of the agreement that members approved Wednesday comes with several new conditions.

The agreement is designed to even the property-buying playing field among the city, the URA and the land bank — each of which may be more or less suited to handle a given transaction depending on the circumstances. Supporters of the proposal, including Councilor Bobby Wilson, argue the current process has too much red tape, in part because council must currently approve any transfer of land between the government entities. Wilson had proposed a new version of the agreement that allowed the land bank to buy property without council’s permission.

But some members of council have expressed concern that the agreement diminishes their role in development, potentially leading to large amounts of land being sold without their input.

In an effort to strike a balance, members debated several amendments to the agreement Wednesday. They included provisions that will keep council involved in transfers to varying extents, depending on which government body is seeking to transfer the land.

In cases where property owned by the city is to be shifted to the land bank or the URA, the new language requires approval from a majority of the full council. But in cases where the property is being transferred from the land bank itself, all that is needed is the approval of the council member in whose district the property lies.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Neighborhoods Fight Blighted Investment Properties with Nonprofit Legal Help

Industry Update
July 26, 2023

Source: northeastnews.net

Neighborhood Legal Support (NLS) and Legal Aid of Western Missouri are helping Northeast and East Side neighborhoods fight back against out-of-state investors leaving multi-family housing properties abandoned and blighted.

On Friday, July 21, the organizations, joined by leadership from Indian Mound, Lykins and Town Fork Creek, gathered at 3000 E. 49th Street to discuss the litigation and call out Whitestone Real Estate Fund, the investment group that owns dozens of properties on Kansas City’s Northeast and East Side.

“The apartment complex behind us had over 60 units when it was acquired by Whitestone and their investment fund in 2022,” Alissia Canady, Deputy Executive Director with NLS, said. “Over 60 units are unoccupied today. Look at it, it’s desolate, it’s uninhabitable. It’s boarded up and full of trash all throughout the property.”

NLS filed litigation against this property at the end of May, giving Whitestone several months to clean it up, Canady said. NLS, a nonprofit law firm, operates and focuses on community development, acting on behalf of neighborhood associations and nonprofits to address blight, violent crime and economic despair in communities.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

HUD Announces Research Grant Opportunity and Event Focused on Office-to-Residential Conversions

Industry Update
July 25, 2023

Source: U.S. Department of Housing and Urban Development

The U.S. Department of Housing and Urban Development (HUD) released a notice of funding opportunity (NOFO) to study office-to-residential conversions. Later today, HUD’s Office of Policy Development and Research (PD&R) will host a virtual event featuring developers, researchers, and local officials to discuss the challenges of executing these conversions and how policies can help overcome those challenges.

The NOFO provides up to $860,000 to compile case studies of conversion projects that have taken place since the start of the pandemic, improve understanding of the financing limitations associated with conversions and the policy reforms and subsidies that can make projects more economically viable, propose metrics to evaluate conversions on housing affordability and other outcomes, and develop a guide for local leaders and development practitioners. Proposals are due on October 12.

“There has been a surge in interest in office-to-residential conversions since the pandemic-induced shift to remote work and as many cities face a softening demand for office space and escalating demand for housing,” said Solomon Greene, Principal Deputy Assistant Secretary for Policy Development and Research. “Research highlighted at the event and supported by this NOFO will help the field to understand the financial and structural barriers associated with conversions and will provide key stakeholders with examples of how best to overcome them.”

This NOFO and event are the latest in HUD’s effort to support researchers, community residents, practitioners, and policymakers to work together to unleash housing supply.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Foreclosure Rates are Surging: These 10 U.S. Cities are Where They’re Up the Most

Industry Update
July 24, 2023

Source: Realtor.com

Foreclosures in America are on the rise for the second year in a row. This puts a firm bookend on an 11-year decline in the forced repossession or sale of a home when a homeowner can’t pay the mortgage.

But let’s take a deep breath: The current rise in foreclosure activity is not uniform across the country. Even more than 15 years ago, when the bottom fell out of the housing market, there are more distressed properties in some areas than others. That’s why the data team at Realtor.com® went out to find which places are experiencing high—and growing—percentages of foreclosure filings.

However, before anyone panics, there is no wave of foreclosures threatening to wash across the country, bringing down home values like the epic crash that occurred during the Great Recession. And the foreclosed properties that do make it onto the market will likely be snapped up quickly by buyers frustrated by high prices and the lack of homes for sale.

In June, roughly 2.5 out of every 10,000 homes had a distressed property or foreclosure filing, according to data provided by ATTOM, a real estate data clearinghouse. In the first six months of 2023, the total of homes receiving a foreclosure filing was just under 186,000. In the years around the housing recession of the late 2000s, about 15 times as many borrowers were going through foreclosure.

The current increase is likely due to the pause in foreclosure activity during the COVID-19 pandemic, says Geoff Walsh, a staff attorney at the National Consumer Law Center.

Today’s rise in foreclosure filings is now catching up with borrowers who might have otherwise already been foreclosed on months or years ago.

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

Black Knight: “Seriously Delinquent Mortgages Hit Lowest Level Since 2006” in June

Industry Update
July 21, 2023

Source: Calculated Risk

According to Black Knight’s First Look report, the percent of loans delinquent increased 0.55% in June compared to May and decreased 2.8% year-over-year.

Black Knight reported the U.S. mortgage delinquency rate (loans 30 or more days past due, but not in foreclosure) was 3.12% in June, down from 3.10% the previous month.

The percent of loans in the foreclosure process decreased in June to 0.42%, from 0.43% the previous month.

The number of delinquent properties, but not in foreclosure, is down 24,000 properties year-over-year, and the number of properties in the foreclosure process is down 5,000 properties year-over-year.

 

For full report, please click the source link above.

 

 

 

 

 

 

 

 

 

 

 

FEMA Fire Management Assistance Declaration – Oregon Golden Fire

FEMA Alert
July 23, 2023

FEMA has issued a Fire Management Assistance Declaration for the state of Oregon to supplement state, tribal and local response efforts in areas affected by the Golden Fire beginning July 22, 2023 and continuing.  The following areas have been approved for assistance:

Public Assistance:

  • Klamath

 

Oregon Golden Fire (FM-5471-OR)

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 Fire Management Assistance Declaration – Washington Newell Road Fire

FEMA Alert
July 23, 2023

FEMA has issued a Fire Management Assistance Declaration for the state of Washington to supplement state, tribal and local response efforts in areas affected by the Newell Road Fire beginning July 21, 2023 and continuing.  The following areas have been approved for assistance:

Public Assistance:

  • Klickitat

 

Washington Newell Road Fire (FM-5470-WA)

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 – New York Severe Storms and Flooding

FEMA Alert
July 22, 2023

***LAST UPDATED 8/10/23***

FEMA has issued a Major Disaster Declaration for areas of the state of New York to supplement state, tribal and local recovery efforts in the areas affected by severe storms and flooding from July 9 – July 10, 2023.  The following areas has been approved for assistance:

Public Assistance:

  • Clinton
  • Dutchess
  • Essex
  • Franklin
  • Hamilton
  • Ontario
  • Orange
  • Putnam
  • Rockland

 

New York Severe Storms and Flooding (DR-4723-NY)

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 – Minnesota Severe Storms and Flooding

FEMA Alert
July 19, 2023

***LAST UPDATED 9/12/23***

FEMA has issued a Major Disaster Declaration for areas of the state of Minnesota to supplement state, tribal and local recovery efforts in the areas affected by severe storms and flooding from April 11 – April 30, 2023.  The following areas has been approved for assistance:

Public Assistance:

  • Aitkin
  • Big Stone
  • Carlton
  • Chippewa
  • Clay
  • Grant
  • Houston
  • Kittson
  • Lac qui Parle
  • Lake of the Woods
  • Mahnomen
  • Marshall
  • Mille Lacs
  • Morrison
  • Norman
  • Pine
  • Pope
  • Prairie Island Community (Indian Reservation)
  • Renville
  • Roseau
  • St. Louis
  • Stevens
  • Swift
  • Traverse
  • Wabasha
  • Wilkin

 

Minnesota Severe Storms and Flooding (DR-4722-MN)

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

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

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CEO

Alan Jaffa

Alan Jaffa is the Chief Executive Officer for Safeguard Properties, steering the company as the mortgage field services industry leader. He also serves on the board of advisors for SCG Partners, a middle-market private equity fund focused on diversifying and expanding Safeguard Properties’ business model into complimentary markets.

Alan joined Safeguard in 1995, learning the business from the ground up. He was promoted to Chief Operating Officer in 2002, and was named CEO in May 2010. His hands-on experience has given him unique insights as a leader to innovate, improve and strengthen Safeguard’s processes to assure that the company adheres to the highest standards of quality and customer service.

Under Alan’s leadership, Safeguard has grown significantly with strategies that have included new and expanded services, technology investments that deliver higher quality and greater efficiency to clients, and strategic acquisitions. He takes a team approach to process improvement, involving staff at all levels of the organization to address issues, brainstorm solutions, and identify new and better ways to serve clients.

In 2008, Alan was recognized by Crain’s Cleveland Business in its annual “40-Under-40” profile of young leaders. He also was named a NEO Ernst & Young Entrepreneur Of The Year® Award finalist in 2013.

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Esq., General Counsel and EVP

Linda Erkkila

Linda Erkkila is the General Counsel and Executive Vice President for Safeguard Properties, with oversight of legal, human resources, training, and compliance. Linda’s broad scope of oversight covers regulatory issues that impact Safeguard’s operations, risk mitigation, strategic planning, human resources and training initiatives, compliance, insurance, litigation and claims management, and counsel related to mergers, acquisition and joint ventures.

Linda assures that Safeguard’s strategic initiatives align with its resources, leverage opportunities across the company, and contemplate compliance mandates. She has practiced law for 25 years and her experience, both as outside and in-house counsel, covers a wide range of corporate matters, including regulatory disclosure, corporate governance compliance, risk assessment, compensation and benefits, litigation management, and mergers and acquisitions.

Linda earned her JD at Cleveland-Marshall College of Law. She holds a degree in economics from Miami University and an MBA. Linda was previously named as both a “Woman of Influence” by HousingWire and as a “Leading Lady” by MReport.

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COO

Michael Greenbaum

Michael Greenbaum is the Chief Operating Officer of Safeguard Properties, where he has played a pivotal role since joining the company in July 2010. Initially brought on as Vice President of REO, Mike’s exceptional leadership and strategic vision quickly propelled him to Vice President of Operations in 2013, and ultimately to COO in 2015. Over his 14-year tenure at Safeguard, Mike has been instrumental in driving change and fostering innovation within the Property Preservation sector, consistently delivering excellence and becoming a trusted partner to clients and investors.

A distinguished graduate of the United States Military Academy at West Point, Mike earned a degree in Quantitative Economics. Following his graduation, he served in the U.S. Army’s Ordnance Branch, where he specialized in supply chain management. Before his tenure at Safeguard, Mike honed his expertise by managing global supply chains for 13 years, leveraging his military and civilian experience to lead with precision and efficacy.

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CFO

Joe Iafigliola

Joe Iafigliola is the Chief Financial Officer for Safeguard Properties. Joe is responsible for the Control, Quality Assurance, Business Development, Marketing, Accounting, and Information Security departments. At the core of his responsibilities is the drive to ensure that Safeguard’s focus remains rooted in Customer Service = Resolution. Through his executive leadership role, he actively supports SGPNOW.com, an on-demand service geared towards real estate and property management professionals as well as individual home owners in need of inspection and property preservation services. Joe is also an integral force behind Compliance Connections, a branch of Safeguard Properties that allows code enforcement professionals to report violations at properties that can then be addressed by the Safeguard vendor network. Compliance Connections also researches and shares vacant property ordinance information with Safeguard clients.

Joe has an MBA from The Weatherhead School of Management at Case Western Reserve University, is a Certified Management Accountant (CMA), and holds a bachelor’s degree from The Ohio State University’s Honors Accounting program.

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Business Development

Carrie Tackett

Business Development Safeguard Properties