Rethinking How D.C. Inspects, Taxes Vacant Properties to Address Urban Blight

Industry Update
December 20, 2015

According to D.C.’s official tally, almost 1,300 properties in the city are vacant or even blighted — and the real number may be much higher. These properties are taxed at a rate six times higher than occupied ones. But unless city inspectors confirm every six months that a property is still vacant, the tax rate goes back down to normal.

That means it’s difficult for D.C.’s four inspectors to investigate new complaints because District law requires them to keep checking current vacant properties to make sure they’re still empty.

But a proposed law would make life easier for the inspectors, and harder for owners who hold onto vacant properties. D.C. Council member Elissa Silverman has introduced that bill, which aims to streamline the city’s vacant-property procedures.

“It basically shifts the burden from the city to keep saying, ‘Yes, it’s still vacant, it’s still vacant, it’s still blighted,’ to the owner to say, ‘Here are the steps that I took that should allow this building to be removed from the vacant and blighted list.'”

Those steps could include showing that the property is leased, or that utilities are turned on — or, for blighted properties, showing they’ve been brought up to code. Silverman says vacant properties can eventually attract drug users and crime.

“It leads to an increase in public-safety concerns,” Silverman says. “It leads to a lack of investment in that area. We want to see these properties put back in use.”

David Sheon, ANC commissioner for a section of north Petworth, has been pushing the city for six months to improve its handling of vacant property. Sheon calls Silverman’s bill a step in the right direction.

“It’s the first piece of a puzzle that has to take place in order to expedite the transfer of property back into use in the neighborhoods,” Sheon says.

But according to Sheon, there’s still a loophole that lets owners of vacant properties hold onto the lower tax rate by getting a construction permit, which buys them another three years. Silverman says she hopes to address that later.

Six other Council members joined Silverman in introducing the bill. She expects a hearing on it in early 2016.

Source: American University Radio

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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