Blight Mitigation

Land banking is part of a regional initiative that transitions blighted properties into usable spaces for beneficial reuse in the community. We believe code enforcement is our first line of defense.

The central goal of the land bank is to mitigate blight and stimulate economic development by transferring properties that are vacant, abandoned, and tax delinquent back to productive use that benefits communities. Strategic decisions can be made to ensure the highest impact properties are pursued and placed into productive use and taxpaying status. The following are some benefits attributable to a land bank.

  • Land Banks work in unison with community priorities and plans and alongside local community development corporations, community-minded groups and individuals to ensure the most desirable development outcomes are achieved.
  • Properties are available to current residents, to-be homeowners, non-profits, investors, and development agencies with countless development opportunities, along with a clear title and a fresh start.
  • Blight is not bound by geographic or political borders.  A regional approach allows for a diverse real estate portfolio and increases opportunities for success.
  • Land Banks focus on the data: tax delinquencies, market types, parcel conditions, trends in development. We have a way to track it – and to map it!
  • Landbanks focus on the data: tax delinquencies, market types, parcel conditions, trends in development. We have a way to track it – and to map it!
  • Addressing blight takes money – acquisition and maintenance of properties can be extremely expensive. Land Banks can accept financial resources from various sources – including membership contributions, grants, revenue from sales, and foundation support.
  • Neighborhood revitalization can be tricky, and oftentimes creative approaches are needed.   Land Banks are flexible for communities’ plans and responsive enough for new opportunities.
  • As a quasi-public entity Land Banks adhere to the same reporting standards and audits, making it a transparent and accountable organization.

    Visit the Tri-COG Land Bank for more information on the process, progress, and goals of land banking.

    Land banking is part of a regional initiative that transitions blighted properties into usable spaces for beneficial reuse in the community. We believe code enforcement is our first line of defense.

    The central goal of the land bank is to mitigate blight and stimulate economic development by transferring properties that are vacant, abandoned, and tax delinquent back to productive use that benefits communities. Strategic decisions can be made to ensure the highest impact properties are pursued and placed into productive use and taxpaying status. The following are some benefits attributable to a land bank.

    • Land Banks work in unison with community priorities and plans and alongside local community development corporations, community-minded groups and individuals to ensure the most desirable development outcomes are achieved.
    • Properties are available to current residents, to-be homeowners, non-profits, investors, and development agencies with countless development opportunities, along with a clear title and a fresh start.
    • Blight is not bound by geographic or political borders.  A regional approach allows for a diverse real estate portfolio and increases opportunities for success.
    • Land Banks focus on the data: tax delinquencies, market types, parcel conditions, trends in development. We have a way to track it – and to map it!
    • Landbanks focus on the data: tax delinquencies, market types, parcel conditions, trends in development. We have a way to track it – and to map it!
    • Addressing blight takes money – acquisition and maintenance of properties can be extremely expensive. Land Banks can accept financial resources from various sources – including membership contributions, grants, revenue from sales, and foundation support.
    • Neighborhood revitalization can be tricky, and oftentimes creative approaches are needed.   Land Banks are flexible for communities’ plans and responsive enough for new opportunities.
    • As a quasi-public entity Land Banks adhere to the same reporting standards and audits, making it a transparent and accountable organization.

      Visit the Tri-COG Land Bank for more information on the process, progress, and goals of land banking.

      The Cost of Blight

      In the summer of 2013, a collaborative made up of the Steel Valley, Turtle Creek and Twin River Council of Governments (Tri-COG) in conjunction with Delta Development Group, developed a study to figure out just how much blighted households costs homeowners and taxing jurisdictions throughout the Tri-COG’s 41 municipalities. The results were staggering and reveal the magnitude of the problem related to blight in our region.

      Download a copy of the Full Report or Executive Summary

      In the summer of 2013, a collaborative made up of the Steel Valley, Turtle Creek and Twin River Council of Governments (Tri-COG) in conjunction with Delta Development Group, developed a study to figure out just how much blighted households costs homeowners and taxing jurisdictions throughout the Tri-COG’s 41 municipalities. The results were staggering and reveal the magnitude of the problem related to blight in our region.

      Download a copy of the Full Report or Executive Summary

      Highlights

      The study looks at both the direct and indirect costs of blight in our neighborhoods.

      Direct Costs

      The direct cost of blight is composed of three different costs:

      • Additional Municipal Services – The first cost only affects municipal budgets and reflects the situation when municipalities deploy additional services in order to maintain blighted and abandoned households. While blight only makes up a portion of the housing stock, we found that they get a disproportionate amount of attention from our municipalities in terms of of code enforcement, police, fire, public work and demolition services from the municipalities.
      • Direct Loss of Real Estate Tax Revenue –  Many of the blighted and abandoned households throughout the Tri-COG were also found to be tax delinquent. In fact 56% of blighted households were found to be delinquent on their county taxes, reinforcing the correlation between a blight and tax delinquency.
      • Direct Loss of Earned Income Tax (EIT) – The EIT levy is the second largest source of revenue for most municipalities in Pennsylvania. EIT is collected based on where a person lives and is therefore dramatically affected by loss of population. Our study looked at the loss of EIT resulting from both demolitions and abandoned households throughout the Tri-COG footprint.

      Direct Costs

      The direct cost of blight is composed of three different costs:

      • Additional Municipal Services – The first cost only affects municipal budgets and reflects the situation when municipalities deploy additional services in order to maintain blighted and abandoned households. While blight only makes up a portion of the housing stock, we found that they get a disproportionate amount of attention from our municipalities in terms of of code enforcement, police, fire, public work and demolition services from the municipalities.
      • Direct Loss of Real Estate Tax Revenue –  Many of the blighted and abandoned households throughout the Tri-COG were also found to be tax delinquent. In fact 56% of blighted households were found to be delinquent on their county taxes, reinforcing the correlation between a blight and tax delinquency.
      • Direct Loss of Earned Income Tax (EIT) – The EIT levy is the second largest source of revenue for most municipalities in Pennsylvania. EIT is collected based on where a person lives and is therefore dramatically affected by loss of population. Our study looked at the loss of EIT resulting from both demolitions and abandoned households throughout the Tri-COG footprint.

      Annual Cost of Additional Municipal Services

      Municipal Service Cost
      Code Enforcement

      $595,350

      Police $6,400,296
      Fire $2,378,525
      Public Works $727,195
      Demolition $618,936
      Total: $10,720,302

      Annual Loss of Real Estate Tax Revenue

      Taxing Jurisdiction Forgone Tax Revenue
      Municipal $5,660,000
      School $4,130,000
      County $17,630,000
      Total: $27,420,000

      Annual Loss of EIT

      Type of Vacancy EIT Tax Loss
      Residential Vacant Lot $164,065
      Household $2,552,473
      Total: $2,716,538

      Indirect Costs

      The indirect cost of blight on the other hand affects homeowners by deceasing the property values of parcels immediately surrounding it. To find what this cost might look like, a 150 foot buffer was drawn around every blighted household throughout the Tri-COG footprint to make the “Blight Buffer”.

      Once the Blight Buffer was drawn, we were able to identify all the stable and non-blighted buildings which were being negatively affected by nearby blighted households. A 15% – 17% decrease was then applied to those non-blighted households, which reflects the studied deflationary effect blight has on property values. In addition to the loss of property value for homeowners, this drop in value affects municipal, school and county budgets for it decreases the revenue garnered from property taxes. The extent of the drop in both property values and tax revenues is provided in the tables below.

      2014 Cost of Blight Update

      The following figures were derived from the latest county records and millage rates in 2014 and reflect the current Tri-COG jurisdictional footprint.

      Allegheny County:

      Housing Statistics

      Total Households 408,985
      Blighted Households 16,428
      Non-Blighted Households Affected by Blight 96,916
      Market Value of Affected Non-Blighted Households $7,165,448,414
      Estimated Property Value Loss: $1,264,490,987

      Loss in Property Tax due to Blight Buffer

      Taxing Jurisdiction
      (Average Millage)
      Loss in Revenue
      Municipal
      (6.105)
      $7,719,717
      School
      (22.795)
      $28,824,072
      County
      (4.730)
      $5,981,042

      Tri-COG Jurisdiction:

      Housing Statistics

      Total Households 90,412
      Blighted Households 6,731
      Non-Blighted Households Affected by Blight 27,528
      Market Value of Affected Non-Blighted Households $1,374,925,296
      Estimated Property Value Loss: $242,633,876

      Loss in Property Tax due to Blight Buffer

      Taxing Jurisdiction
      (Average Millage)
      Loss in Revenue
      Municipal
      (7.539)
      $1,829,217
      School
      (21,305)
      $5,169,315
      County
      (4.730)
      $1,147,658

      Thank You
      Corporate
      Sponsor:

      Turtle Creek Valley Council of Governments
      2700 Monroeville Blvd
      Monroeville, PA 15146
      PHONE: 412.858.5115
      FAX: 412.858.5118