Explanation
BACKGROUND: The National Community Stabilization Trust (NCST), a national non-profit organization that acts as an intermediary between financial institutions and local governments, created a subsidiary to receive donations of mortgages from these financial institutions. Called the Community Restoration Corporation, this subsidiary holds a portfolio of underperforming residential mortgages and seeks to provide assistance to homeowners to avoid foreclosure. The Land Redevelopment Office requests authorization to enter into agreements to resolve vacant properties where the CRC is unable to obtain a mortgage workout. The Land Bank program would receive funds from the CRC, accept donations of properties, agree to request tax foreclosures, and other activities to abate vacant properties. Since agreements are typically based on individual properties, blanket authorization is sought to allow the Land Redevelopment Office to enter into agreements with CRC and other financial institutions and owners of vacant property on a parcel by parcel basis. Ordinances 2161-93 and 1325-98 created the City’s Land Reutilization program and authorized the Director or his designee to enter into certain agreements to acquire properties as a part of the program. This legislation seeks additional authorization to allow the Land Redevelopment Office to negotiate additional agreements to receive funds to help defray the costs to demolish and maintain these vacant properties and in return, accept the donation of property, request tax foreclosures, receive deed in lieu of foreclosure, and other activities allowed under the Land Reutilization Program.
FISCAL IMPACT: No funding is required for this legislation. Funds received will be deposited into the Land Management Fund and used to operate the Land Reutilization Program.
EMERGENCY JUSTIFICATION: Emergency action is requested to enter into agreements as soon as possible in order to return vacant properties to productive uses.
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