Philadelphia Land Bank Releases Plan to Tackle Vacancy

Updated 1/26:  On January 22, PLANETIZEN published a post titled Strategic Plan for Philadelphia Land Bank Gains Approval.

Link to article

Updated 12/2:  On December 2, philly.com posted an article titled Council panel OKs ‘strategic plan’ for Philly Land Bank.

Link to article

On October 2, news website PLANPHILLY published an article detailing the Philadelphia Land Bank’s recently released five year strategic plan draft.

Philadelphia Land Bank releases plan to tackle vacancy

The Philadelphia Land Bank, a nascent agency organized to streamline the redevelopment of thousands of Philadelphia’s vacant and tax-delinquent properties, released a draft of a strategic plan on Wednesday recommending a number of goals the new body should pursue over the next five years.

The plan, which was written by a team led by Philadelphia-based Interface Studios, is the result of four months of analysis of data provided by various city agencies and meetings with dozens of advocacy groups and city officials who wrestled the Land Bank into existence.

The Land Bank board will solicit community feedback at a public hearing in mid-October and complete a final draft of the plan by the end of the month.  The plan will then be sent to City Council for its approval.

Those who’ve followed the development of the Land Bank closely over the past few years won’t find any major surprises in the draft plan.  Its overarching goal is simple:  “to return vacant and tax delinquent property to productive reuse.”  Deceptively simple, perhaps, given that the Land Bank itself wouldn’t have been created if those few words didn’t represent an intricate, elusive goal for Philadelphia and other cities around the country.

The Land Bank is intended to address the vacancy problem by consolidating ownership of city-owned properties, acquiring privately owned tax-delinquent properties, clearing tax liens and tangled titles, and selling or otherwise transferring properties in its inventory for development or other community uses. According to the plan, it will seek to promote new affordable and market-rate housing development, the creation of new businesses and the expansion of existing ones, the vitality of urban agriculture, and the availability of open space and green infrastructure.

As part of the strategic planning process, Interface Studio—along with partners Real Estate Strategies, Inc. and Lamar Wilson Associates—provided an updated inventory of vacant and tax-delinquent parcels in Philadelphia.

  • Roughly 8,000 vacant parcels are currently under some form of public ownership in Philadelphia and not committed to a specific project.
  • Another 24,000 properties are vacant and tax-delinquent but privately owned, according to the plan.
  • Of those 32,000 potential Land Bank properties, around 9,000 are vacant buildings.
  • The team identified more than 100 “assemblage opportunities,” each involving more than 10 vacant properties.
  • 2,100 vacant lots sit next to homes whose owners are up-to-date on their taxes.

The data used to populate the report came from the city’s own public inventory of vacant land, property surveys conducted by the City Planning Commission and by Interface Studio, the Water Department and the Office of Innovation and Technology and—in the case of privately owned, tax-delinquent and vacant properties—the Revenue Department.

In an interview with PlanPhilly on Monday, John Carpenter, a deputy director for the Philadelphia Redevelopment Authority, said that the various city agencies that hold property were helpful and forthcoming with the information. But Scott Page, the founder and principal of Interface Studio, acknowledged that the data still isn’t complete.

“We say in the report a number of times that the data is imperfect, and everyone is aware that that data is imperfect,” said Page.  “One thing we learned in the process is that regardless of what dataset we looked at—whether it was Water Department or L&I or a combination of both or even the Planning Commission district data—it didn’t change the geography of where there’s a concentration of vacancy, it just changed the intensity … In terms of where there are real opportunities for the Land Bank to play a role, the geographies aren’t really changing.” 

The plan outlines seven goals for the Land Bank.  The first, a citywide goal, is to return individual vacant properties to productive use by identifying and marketing individual development opportunities (IDOs), transferring one-off vacant properties to adjacent owners as side yards, and preserving existing community gardens.

The next set of goals are focused on specific areas with high levels of vacant properties where the Land Bank will “proactively acquire, assemble, and dispose of property for specific purposes based on determined need and opportunity.” The goals are:

  • Promoting equitable development by supporting existing initiatives, such as Council President Darrell Clarke’s plan to build 1,500 new affordable housing units, and working to preserve affordability in neighborhoods undergoing gentrification.  The plan recommends targeting new affordable housing in areas with good access to food and transit, and with a high concentration of “cost-burdened renters.”
  • Fostering private development by offering land for market-rate projects that include affordable housing components.
  • Supporting economic development by acquiring and repurposing properties on neighborhood commercial corridors and adjacent to existing businesses.
  • Protecting and increasing open space in areas that lack it.

There are focus zones where those goals will be pursued.

The final goals outlined in the plan emphasize the transparent and efficient operation of the Land Bank.  Its planning should coincide with the plans already underway as part of the Planning Commission’s Philadelphia2035 process, it recommends.  Data should continue to form the foundation of Land Bank operations, and the public and stakeholder groups should have frequent opportunities to participate in its development.  Additionally, properties within the Land Bank should be actively marketed to keep property moving into productive hands.

The immediate priorities of the Land Bank, according to the plan, should be to pursue the low-lying fruit, dispositions that establish the entity as an efficient, successful new tool for tackling vacancy in the city.  That could include early actions like acquiring and transferring individual properties for side yards, infill developments, and existing community gardens. Additionally, the Land Bank should selectively acquire private tax-delinquent properties to enhance the marketability of vacant properties that are already in the public inventory.

Jennifer Kates, an aide to Councilwoman María Quiñones-Sánchez, who sponsored the Land Bank legislation, and a member of the Land Bank board, said that the data analysis underpinning the strategic plan is a significant accomplishment that will guide a more productive approach to undoing vacancy and tax delinquency.  Kates also said that she’s excited about the inclusion of “decision trees,” pictured below, that will help shape the Land Bank’s approach to finding new uses for vacant properties.

“These [decision trees] represent a major step forward in approaching property acquisition and disposition strategically,” Kates wrote in an email.  “One of the greatest frustrations with the old system is that there is so little guidance about what uses are viable for a particular location.  For example, is infill housing development possible now, or in the near term? Does parking make sense at this location? Is this a potential assembly site?  Finally we are in a position to have that kind of guidance.”

When it is submitted to Council, the plan will also include specific targets for acquisition and disposition of properties, for specific uses, in each of the next five years.  Those targets will be broken down into seven end uses:  side yards and parking spaces, individual development opportunities, existing community gardens, affordable housing, market-rate housing, economic development, and open space.  In the current draft, the plan sets a target of having all 8,000 identified publicly owned vacant properties in the Land Bank by the end of 2016.  By the end of the 5-year period, it recommends the disposition of 2,750 of those properties.  No targets have been set yet for acquisition of privately owned tax-delinquent properties.

Councilwoman Sánchez did not respond to a request for comment on this story. Council President Darrell Clarke’s office said it would withhold comments until a public hearing is held.

Please click here to view the article online.

Please click here to view the full plan draft online.

About Safeguard 
Safeguard Properties is the largest mortgage field services company in the U.S. Founded in 1990 by Robert Klein and based in Valley View, Ohio, the company inspects and maintains defaulted and foreclosed properties for mortgage servicers, lenders, and other financial institutions. Safeguard employs approximately 1,700 people, in addition to a network of thousands of contractors nationally.
Website: www.safeguardproperties.com.

x

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.

x

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.

x

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.

x

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.

x

Business Development

Carrie Tackett

Business Development Safeguard Properties