PROPERTY DISPOSITION IN BOSTON:
A PROCESS IN NEED OF A POLICY
by
MARY A. KNASAS
B.A. Williams College
(1978)
Submitted to the Department of Urban Studies and Planning
in Partial Fulfillment of the Requirements of the Degree of
Master of City Planning
Massachusetts Institute of Technology
May 1984
Q
1984
Mary A. Knasas
The author hereby grants to M.I.T. permission to reproduce and to
distribute copies of this thesis document in whole or in part.
Siganture of Author
lIe'part'imnt o."ran'Studies and Planning
Certified by
Millip
Th
i(
dvi sor
Accepted by
-R
Genhejiief, Chairman,
Comm, ttee
(D
Departmental Graduate
LuOGY
~
AUG 1 0 1984
LIBRAI
ES
2
PROPERTY DISPOSITION IN BOSTON:
A PROCESS IN NEED OF A POLICY
by
MARY A. KNASAS
Submitted to the Department of Urban Studies and Planning
in May, 1984 in partial fulfillment of the requirements
for the Degree of Master of City Planning
This thesis defines and depicts the implications and results of a
three
from
policy in Boston
disposition
property
coordinated
the
addresses
It
pragmatic.
and
planning,
bureaucratic,
perspectives:
disposition
property
between
relationship
the
strengthen
to
City's need
and neighborhood development.
strategy outlined in this thesis aims to achieve what
The
neighborhood advocates and a newly elected City administration see as
to revitalize
essential tasks over the next several years, namely:
development
neighborhoods through targeted community and economic
Primary attention is given to how Boston can utilize its
initiatives.
vacant, abandoned, foreclosed, and surplus property inventory as an
urban resource. The strategy consists of the Mayor first establishing a
which
This will become the framework from
disposition policy.
be
can
agencies
appropriate implementation channels among bureaucratic
designed.
disposition
Without policy goals and a vehicle to implement them,
discusses
thesis
The
ineffective.
and
scattered
remain
will
planning
the roles of both
components of a planning classification system,
private and community developers, and the function of neighborhood
participation in the property disposition process.
Thesis Supervior: Phillip L. Clay
Title: Associate Professor of Urban Studies and Planning
3
ACKNOWLEDGEMENTS
like to thank my thesis Advisor Phil
I would
Clay,
and
Sandra
Rose, a Member of my thesis Committee, for their thoughtful review of my
work.
In addition, I would like to thank all of the people who gave of
their
time
especially,
special
to
Greg
share
information
and
make
this
thesis
Polk who made suggestions for framing the
possible,
topic.
thank you is extended to Maria Papalambros who patiently
this report.
A
typed
My deepest gratitude is expressed to my parents and family
who helped me keep a "thesis process" all in perspective.
4
TABLE OF CONTENTS
Page
Abstract . . . .
Acknowledgements
Introduction
. . . . . . . . . . . . . ..
6
Chapter 1:
Context
Chapter 2:
Property Disposition from a Bureaucratic
Perspective
Agency
Policy
Policy
Policy
Profiles . . . . . .
Formulation . . . . .
Issues . . . . . . .
Implementation . . .
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
15
19
21
26
Property Disposition from a Planning
Perspective
Chapter 3:
Planning Components . . . . . . . . . . . .32
Community Participation . . . . . . . . . .35
Planning Objectives . . . . . . . . . . . .37
Property Disposition From a Pragmatic
Perspective
Chapter 4:
.
City Inventory
Community Perception . . .
.
City Support . . . .
40
42
43
Conclusion . . . .
..
. . . . . .
46
. . .
..
. . . . . .
49
. . . . . .
..
. . . . . .
54
Bibliography . . .
..
. . . . . .
57
List of Interviews
..
. . . . . .
59
Apppendices
Notes
5
INTRODUCTION
important relationship exists between property disposition
An
Boston's current disposition process has no
development.
neighborhood
This thesis will
policy direction to guide decisions or target results.
coordinated
the
depict
and
define
and
implications
and
a
of
results
targeted,
neighborhood
property disposition policy and its impact on
development.
of a disposition policy should be one of the goals
Formulation
the
the
that
It is upon this issue
administration.
Flynn
Mayor's
promises can turn into functional organizational realities
campaign
and economic development
housing
increasing
opportunities
of
by
throughout
Boston's neighborhoods.
for abandoned property,
uses
New
tax
foreclosed
property,
municipal surplus property can provide construction jobs and
well
as
units,
housing
positive
This
neighborhoods.
stimulate
as
commercial
link between property
and
additional
enterprise
disposition
in
and
neighborhood development must be forged to counter the destructive cycle
of property abandonment and neighborhood disinvestment.
is essential
It
If
inventory.
neighborhoods
property,
disposition
based
impact
with
then
for
Boston
high
a city to
categorizes
have
its
a
holdings,
percentages of abandoned
development
of
flexible
methods - some based upon
and
revenue
property
comprehensive
or
especially
tax
in
foreclosed
responsive
considerations,
property
others
upon neighborhood development concerns - can only have a positive
on
citizens.
upgrading and insuring viable living
environments
for
its
6
CHAPTER 1
CONTEXT
7
prospered
has
development
of
level
"critical mass".
In contrast,
city
some
and,
over the past two decades
planners and neighborhood advocates claim,
Downtown
history.
urban
is at an important point in its
Boston
it has reached its effective
are
neighborhoods
the
now
becoming a focus for new development initiatives.
Where
how to effectively interrupt a cycle of
learn
Tax
the City begin to direct its efforts?
can
must
City
The
disinvestment.
property
delinquent and abandoned properties carry an expensive price tag in
of
terms
tax
revenues lost
by
the
increased
In addition,
city.
government expenditures are necessary in order to process, maintain, and
sometimes
manage
foreclosed properties held by the
City.
more
Even
costly and cruel is the situation for those caught in an area undergoing
1
When property deteriorates, it often becomes a target for
abandonment.
Neighborhood
vandalism.
and
arson
confidence is sapped
and
empty,
decayed building shells increase.
Tax delinquent,
on
the
city
computerized
and
its
neighborhoods.
According
tax delinquent property inventory.
of 3133 parcels of property through foreclosure.
have
drain
abandoned property is a physical and fiscal
to
the
City's
Boston has possession
Another 3577
parcels
been legally petitioned for foreclosure by the City to the State's
Land Court, and the City has tax liens on 11168 additional parcels.
The
amount of these outstanding tax revenues is approximately $146
2
This figure does not include additional city expenditures
million.
dollar
incurred
for
administrative and security maintenance.
more than $3 million
3
demolishing decayed buildings.
City
paid
for
fire
protection,
Last year
the
boarding,
and
8
The
City
can
property
into
an
turn
its liability
deteriorating
and
unsold
of
asset if it accepts the challenge
its
manages
and
These properties provide an opportunity for:
property wisely:
1. stabilizing neighborhoods experiencing disinvestment or abandonment
2.
upgrading deteriorating neighborhoods
3. reinforcing ongoing revitalization
4. improving physical image in order to attract
new private investment
5. leveraging and influencing the course of
development
An
reveals
examination
three
of Boston's current property
1)
problems:
there
are
process
disposition
technical
bureaucratic
and
2) there is a lack of long term planning for property,
inefficiencies,
and 3) the City relies on the auction process for disposing of property.
The City can take two steps to increase effectiveness in
of foreclosed property.
First, it should establish specific disposition
and second,
comprehensive
it should develop a
criteria
and controls;
planning
mechanism for tax foreclosed and surplus property.
step
all
involved
requires
process.
assembling
The
foreclosed
most
property,
neighborhoods
certain areas.
to
The
in the disposition process.
planning tools which can
essential are:
determine
if
parcel
the
locations
land assemblage should
be
among
step
second
1) the categorizing
2) mapping
and
assist
The first
efforts
requires discussion of methods and coordination of
agencies
disposing
disposition
the
City's
in
pursued
City
in
9
With a defined property disposition policy and planning tools, such
as
those described above,
or
effectively
the City could best dispose of its inventory
term
a property's long
for
plan
use
productive
in
targeted neighborhoods.
and
obtaining
City has two
the
Presently,
(as
defined,
statutorily
First,
recycling abandoned properties.
process
foreclosure
methods,
defined in Chapter 60
of
the tax
the
for
title
Massachusetts
Laws) terminates the owner's "right to redeem" his property
General
paying back taxes,
interest,
and other charges owed. The advantages of
process is that the City can gain control of properties which
this
by
are
failing to produce revenue and are creating neighborhood blight. Second,
the tax abatement process (as defined in Section 8 of Chapter 58 of
the
Massachusetts General Laws) gives authority to the tax assessor to apply
to
the State Commissioner of Revenue to have taxes abated in part or in
on a delinquent property.
full
The advantage of this process is
getting
4
rehabilitated and restored to productive use.
the
has
City
both
However,
typically
the Law Department,
as
property
well.
The
Although it can take as little as six
demands
on
follow-up
6
on
the Collector-Treasurer's
the Real Property Department,
and the State's Land Court.
Department,
occurring.
abandoned
processes have their disadvantages
among the Assessing Department,
coordination
puts
for
complete foreclosure on tax delinquent property, it more
5
It also requires a high degree of
takes two to five years.
to
Office,
discretionary tool
process is lengthy.
foreclosure
months
a
that
The tax abatement program also
local administrative resources,
abated
properties
to
the Building
insure
that
and
the
City
rehabilitation
must
is
10
revenue
foreclosures and tax abatements play both a
Property
and
Boston's foreclosure process has primarily been used
development role.
In contrast,
as a revenue based strategy to collect unpaid taxes.
its
abatement process is foremost a resource development strategy because it
abatement
the
Yet
property.
abandoned
of
owners with the purchase and rehabilitation
new
assists
because
revenue
process also generates
property returned to productive use produces taxes.
the Rehabilitation of Tax Abated Properties Program (RETAP) in
designed
1982.
RETAP
buyers
of
tax delinquent residential properties of one to
property
restoring
to
six
units.
is a limited and partial solution
7
One recent unintended
productive use.
it
program is that some
the
of
consequence
non-profit
expedites abatement requests for residents or
Although this targeting is helpful,
to
Boston
role,
development
To target further the abatement process'
owners,
delinquent
on
the
that taxes will be abated, are demanding higher prices for
8
limited
This market inflation counteracts the
buildings.
assumption
their
financial benefits the program offers to new owners.
projects.
new
delinquent properties,
improve
tax
the
legislators
amend
administrators
following
for
financing
a
development
In order
to
assist
many city administrators,
the
redevelopment
foreclosure and tax abatement
Chapters 58 and 60 of the
processes.
General
Laws,
streamline appropriate bureaucratic channels,
results
can occur:
of
community and private
individual home rehabilitators recognize the
and
developers,
when assembling
title transactions and tax abatements can stall or even
Slow
project.
dissolve
critical
is
Time
1) an increase in the rate of
need
to
If state
and
City
then
the
property
11
delinquent
by
redemption
deterioration
because
of
2)
owners,
shorter
a
lag time
in
reduction
between
tax
property
taking
and
foreclosure, and 3) a return of property to the tax rolls and productive
use in less time.
Due to increasing demand for affordable housing, and the high costs
of
new
construction,
officials,
However,
not
been
developers,
State
by
many
and planners as an urban resource to be tapped.
antiquated foreclosure procedures, dating from the 1940s, have
expeditious in giving
rehabilitators,
the
delinquent City property is now viewed
private
developers,
or community groups access to such properties.
legislation
began to respond to
increased
delinquency
9
resulted in the following proposals for 1984:
municipalities
individual
by
re-examining
the tax
0
for
municipalities
to
funds
Increase
collection
tax
property
enforcing delinquent
*
Increase funds to the State Land Court for
with
assist
to
personnel
additional
foreclosure
of
backlog
the
processing
petitions
*
by
tax abatement proceedings
Accelerate
providing written criteria for abatement;
provide an opportunity for informal hearings
and an opportunity for recourse if decisions
are adverse.
0
Modify the foreclosure statute in order to
eliminate the six month waiting period after
tax title taking if a property is more than
two years delinquent.
*
an enabling act
Establish
create
to
municipalities
corporation
renovation
In 1983
pressures
issue.
home
from
It has
allows
which
property
a
The final point of the 1984 proposal package would enable a city to
create a corporate entity to hold foreclosed property without subjecting
12
municipalities are
City to direct liability (presently,
the
has
Boston
Currently,
attorney,
estate
State
the
not
(PFD)
However, Lori Goldin, PFD's
has the statutory authority to develop it.
real
City
The City's Public Facilities Department
is passed.
legislation
or
whether
a
establish
to
capability
corporation"
"renovation
subsidiary
the
foreclosure
final
on foreclosed property only until a
10
decree is issued).
liability
from
protected
there
says
are
internal
and
budgetary
for
yet to be researched before any holding corporation
11
foreclosed property would be established.
considerations
disposition
benefits of a corporation with regard to property
The
the limited corporation is),
(although
has additional time to plan the
rehabilitation and targeting of property in City neighborhoods,
developers,
to
holds
1) the City, not directly liable for foreclosed property it
are:
arrange
and
2)
especially community based developers, have additional time
the
of
development
despite proposed changes in state statutes,
the City can
financing and complete the
packaging
projects.
Overall,
meet
best
the
specific
disposition
efforts
by
development
plans.
The
challenges
devising
posed
a clearer
policy
neighborhood
and
RETAP program is an incremental step
direction and the property holding corporation offers
right
property
fragmented
by
opportunities to target development decisions.
However,
in the
additional
the City must
undertake more comprehensive and coordinated efforts.
The
change
next
its
three
present
chapters will examine where and
piecemeal
process
into
a
how
focused,
Boston
can
workable,
13
productive
process
many
policy
- complimented
by a revamped
disposition
property
which mirrors it. Because the property disposition
dimensions,
development,
extending
from City administration
I will analyze it from three perspectives:
planning, and pragmatic.
to
issue
has
neighborhood
bureaucratic,
14
CHAPTER 2
PROPERTY DISPOSITION FROM A BUREAUCRATIC PERSPECTIVE
15
chapter begins with brief descriptions of City Hall agencies,
This
the
in
actors
principal
processes.
disposition
foreclosure,
the
they are
Presently,
and a redevelopment authority.
departments,
property
and
abatement,
The following organizational overview explores
the implications of agency actions or non-actions on the acquisition and
disposition of foreclosed property.
the
The Collector-Treasurer's Office is responsible for maximizing
tax roll by collecting as much in taxes,
City's
assessors,
and
records
This office
doing so as quickly as possible.
who are delinquent in tax payments (delinquency is defined as 14
owners
overdue) and can legally file to foreclose on a property after
days
has been in tax lien status for six months.
two
City
as determined by
years
Kenneth Glidden,
on
filed
Glidden
effective
filing with the State's
before
a
claims
method
This office typically waits
Court,
Land
First Assistant Collector-Treasurer.
basis with an average
continuing
the
foreclosure
it
of
according
to
Foreclosures are
12
1,000 per year.
to
process has proven
to collect back taxes (as opposed to
be
the
personal
most
suit,
distress sales, and rent taking).
The Law Department's Tax Title Division
forecloses
on
properties
which are tax delinquent by "perfecting" the City's tax lien through the
State's Land Court.
However, in order to avoid municipal liability for
tax-delinquent occupied properties the Department gives these
buildings
low priority.
The Assessing Department
certain
circumstances
Commissioner
of
has
the discretion to abate taxes
by submitting formal application
Revenue.
Routine abatements are
to
typically
the
under
State
hardship
16
and
cases,
owners
those
in a depressed or rapidly declining
conditions
special
processes
also
Department
caused by
13
This
area.
claiming a sudden overassessment
RETAP
the
with
abatements in conjunction
There is no statutory language to aid either City assessors or
program.
the state Commissioner in making a decision about which cases should be
14
Abatement decisions are based upon what would result in the
approved.
equity
greatest
both
for
the particular taxpayer
and
involved
all
taxpayers in the community.
manages
The Real Property Department
acquired
estate
through foreclosure,
and disposes
of
City
unless the property is held
real
by
other departments (such as Public Facilities or the BRA) for development
Liability for foreclosed property remains with Real Property
purposes.
the
unless
negotiated
for
is transfered to PFD
parcel
sales
with
potential developers.
In order to generate revenues, and decrease liabilities, foreclosed
property
process.
is usually
Those
sold at auction are returned
not
properties
inventory or immediately auctioned again.
to
the
According to Fred Pelligrini,
Estate Agent, there are 375 to 425 foreclosures per
15
Of this number, 275 to 300 are advertised per
on the average.
Department
year,
auctioning
expeditious
the
disposed of through
Real
year through the auction list.
However, the exact number of properties
Pelligrini estimates that
sold through the auction process is unknown.
of the 275 to 300 parcels put up for auction each year, 80% of the sales
are
The
completed.
approximately
estimated
20%
figure
number
to 25%
also
of
of
properties
advertised
properties.
varies depending on the
to
transfered
number
properties received by Real Property in any given year.
PFD
However,
of
are
this
foreclosed
17
real estate inventory is
Property's
Real
an
resource
important
can be used in programs that salvage deteriorated housing and/or
16
Because of this, a more careful
develop new housing on vacant lots.
which
is required.
The
results would be improved targeting in particular neighborhoods as
well
examination
of
the department's property holdings
as improved property reuse.
The Neighborhood Employment and Development Agency
operates
(NDEA)
The City tried to give the agency
under
a Mayor's Executive Order.
range
of legislative powers to dispose of property three years ago
efforts
17
unsuccessful.
lobbying
commercial centers.
of
win State House approval
to
NDEA's
proposal
the
a
but
were
primary development focus is in neighborhood
In these areas the Agency targets anchor parcels by
first identifying them.
If a parcel is already owned by the City, NDEA
notifies Real Property to withhold it from auctioning.
If the parcel is
not owned by the City, NDEA works to expedite the foreclosure.
Presently, NDEA is expanding its efforts for long term improvements
to the City's vacant and abandoned housing stock.
coordinated
a
computerized inventory of all tax title
city property by neighborhood,
tax
In addition,
delinquency.
This
will
land use,
it has
foreclosed
and
and the length and amount
serve as an important tool
of
in planning
disposition decisions relevant to neighborhood development.
Public Facilities Department
and
foreclosed
land held by the City's Real Property Department.
has eminent domain powers.
also
powers
and
(PFD) can take
Due to such
analysts,
This department
extraordinary
statutory
engineers,
planners,
and its diverse technical staff including
financial
buildings
it is a key negotiator and evaluator
in the
18
However,
planning.
possibly
It could
process.
disposition
and
development
both
intricate
is one component in an
Department
the
do
Other agencies like NDEA, Real Property, and BRA
bureaucratic network.
have specific functions in the development and planning areas.
However,
its role could
depending on how PFD's administrators pursue the issues,
expand as a new policy is determined
It functions
agency.
development
as
planning
and
coordinator
and
is the City's
(BRA)
Boston Redevelopment Authority
an
economic
expeditor of commercial and residential development projects, especially
Like
downtown.
PFD,
the
the BRA has
extensive
a diverse
powers,
as well as a strong research department which is used
18
internally and by City agencies and the public.
staff,
technical
few
development
reviewing
garages
interest and
with the responsibility of seeking developer
years,
and
proposals
for
disposition
a commercial building on Temple Place.
of
parcels
throughout
However,
Boston
municipal
four
The
important actor in the disposition of City owned property,
in downtown locations.
past
in the
BRA has been delegated by Real Property and PFD,
The
BRA
is an
particularly
it also holds scattered urban renewal
from the 1960s which could be
with
linked
other city foreclosed and surplus properties for future development.
current
The
properties
This
change
and
Chapter's
can
key
organizational
actors
who
dispose of foreclosed properties are
following sections,
will look
acquire
delinquent
described
specifically
at
be implemented in the process and how a disposition
above.
where
policy
can more clearly be defined given Boston's urban context and its current
administration.
19
Ideally, a City's disposition policy seeks to expedite the movement
of
property through the bureaucratic system into productive revenue and
development reuse.
However, Boston's disposition efforts are not guided
If Boston's neighborhoods possessed the
by any specific policy or plan.
and if vacant,
development momentum its downtown already has,
were
properties
delinquent
as
not
along
prevalent
and
tax
neighborhood
commercial strips, in neighborhood centers, and residential blocks, then
the auctioning process and the free markelt system might be sufficient to
this is not the reality.
However,
redevelop the City's neighborhoods.
needs to design a policy in order to resourcefully
Boston
This
neighborhoods.
rebuild
next section addresses the issue of how the
its
City
can formulate an appropriate disposition policy.
I. POLICY FORMULATION
Policies grow out of ideas.. .what can be done
with them depends as much on their intrinsic
richness as on the quality of the minds and
the nature of the environment.19
Boston
is
fertile
policy.
Despite this capability,
vehicle
for
implementing
the City's bureaucracy,
policy,
disposition
property
ground for developing a
is presently
which is the
factioned
by
what
for
jockeying
would call "an incessant
20
Specifically, NDEA, Real Property and PFD
jurisdictional position."
bureaucratic
seek
theorists
to defend or extend their existing territorial borders
pertaining
to the property disposition process.
The City needs a coordinated policy.
However, without a central
mandate the agencies will continue to pursue self-generated,
policies
that
policy can.
have not produced the results
a
coordinated,
fragmented
targeted
20
Developing a property disposition policy and determining what roles
in implementing it
have
agencies
same
are "two different sides to the
coin."
Policy development requires leadership from the City's political
center
- the
Mayor's
Office.
statutorily strong.
particularly,
Mayor's
the
In Boston,
As a result, it
is
Office
is
this office which
is ultimately accountable for City policy.
It is critical that the Flynn administration,
direct
to
opportunity
The
policy.
disposition
by
efforts
redevelopment
mayoral
this
seize
steeped in the neighborhood revitalization issue,
campaign
establishing
Mayor's leadership on this issue
a
deter
can
jurisdictional disputes by refocusing administrative energies to
agency
the
which won a
central
issue
of assisting
neighborhood
development
which
(of
property disposition plays an important part if properly planned).
The
the
other side of the coin,
administration
have
policy implementation,
objectives
overall goals and
requires that
which
do
not
conflict with individual agency functions.
Political
transitions
In Boston,
alls."
create
temporary
bureaucratic
the Flynn Administration is refining organizational
Simultaneously,
changes in the areas of development and housing.
administrators
positions
and
are
"free-for-
tyring
to adjust
and
jockey
into more advantageous power slots.
a sense of team play,
their
A spirit of
if established by the
City
departmental
cooperation
administration,
will
determine the outcomes.
Only limited positive results can be achieved by some degree of inhouse competition.
tune
For example, each City department by trying to fine
it role in the disposition process,
could possibly result in new
21
initiatives
feasible
However,
programs.
of
same program functions resulting
the
as
just
departments
as
is the development of increased inefficiency
for
compete
management
better
and
or
in duplication
undermining of each others efforts.
Property
in
The Board,
Policy Board.
convened in 1983 under Mayor Kevin
with Mayor-Ray Flynn's new adminsitrators.
the
has only recently met
and coordinated by NDEA,
White's administration,
Abandoned
City's
the
are
process
the disposition
through
discussions
in policy
participating
involved
agencies
Presently,
of
the proceedings
Hence,
Sandra Rose,
Board have not yet been productive enough to assess.
NDEA's Assistant Manager for Abandoned Property Resources and Management
System, is the interim coordinator for the Policy Board, and Chairman of
the
Abandoned Property Working Group (composed of personnel
departments
divisions).
and
She foresees the formulation of
of 1984 (at the
21
necessary phasing-in of a new administration.
by
direction
policy
September
from
city
a
clear
given
earliest)
the
II. POLICY ISSUES
As long as we cannot determine what is
feasible, we cannot carry out any welldefined policy univocally, all we can do is
carry along a cluster of potential policies. 22
Before
a
disposition policy can be formed
in this section is the real estate role the
will
address
play
regarding
property
is chosen
appropriate
disposition.
for foreclosure and
disposition
planning and pragmatism.
Other issues
disposed
functional
The major issue I
issues Policy Board members must debate and resolve.
property
are
there
City
should
concerning
of,
methods will be discussed in the
and
what
chapters
what
are
on
22
The
banker,
City
can take on three roles:
and
3) as
development
1) as landlord,
coordinator
and
2)
land
as
The
expeditor.
possibility of the City functioning in any of these three capacities
is
well
as
the City's financial and technical resources as
on
dependent
implementation mechanisms the City either has, or needs to develop.
1) City as Landlord - As noted previously, the City is reluctant to
occupied
on
foreclose
because
The
manager.
and
owner
as
liabilities
buildings
it
property
accept
must
of
implications
extensive
City.
acquisition of occupied buildings are primarily financial for the
to
afford
cannot
City
be the landlord of
sector
private
abandoned
The
budget.
trying to balance an already unbalanced fiscal
is
Boston
property.
City establishes a corporate subsidiary
the
Unless
Facilities
Public
without
direct
Department) which could hold
few
that
State's
Land
However,
to
important
Court
foreclosure
for
also
are
limits
control the physical deterioration of a
that
delinquency.
occupied delinquent properties
occupied
City
will
City
Currently, the
become a major owner of occupied foreclosed properties.
fact
properties
foreclosed
there is little chance that the
liability,
its
(through
to
forwarded
the
the
possibility.
it
is
stages
of
building,
property be obtained in its early
officials and developers concur that the
sooner
a
building is acquired, the need for gut rehabilitation decreases.
If
the
neighborhoods
City
is
undergoing
to
assume
responsibility
stabilizing
disinvestment and upgrading others which
deteriorating, then it must take on some pivotal role.
not
for
are
If the City does
assume ownership and management responsibilities of delinquent
foreclosed occupied buildings, it must find someone who can.
and
23
The
Housing Partnership,
Boston
is
implemented,
being
public/private
a unique effort.
large-scale
only
It is the
It
housing.
abandoned
for delinquent and
initiative
currently
formed last March and
pools business, government, and community resources in the production of
dffordable housing.
City is committing $1 million in Community
The
assistance
technical
offer
to developers to get projects started as
financing
front-end
to
Block
The Partnership's role is to provide
(CDBG) funds to the group.
Grant
Development
interested
community
well
23
as
groups.
The
demonstration program will rehabilitate 500 housing units throughout the
Units are located in both occupied delinquent buildings as
City.
as
abandoned
perform
will
organizations
Several
structures.
neighborhood
based
rehabilitation.
the
well
non-profit
the
Eventually,
neighborhood groups will own and operate the buildings.
housing experts claim that the program's $35,000 subsidy per
24
However,
unit absorbs a high percentage of limited public resources.
Some
the
partnership,
like
the
RETAP
program,
is another
to try and revitalize neighborhoods
where
important
there
is
financially unable to restore and manage delinquent housing
on
incremental
step
housing disinvestment.
If
its
own,
the City must continue to design and expand upon the lines of
the Partnership model.
a
"demonstration"
financial
but
It must insure that this program does not remain
becomes
an
institutionalized
process
where
and technical assistance is available from banks and the City
to community groups and developers.
If not landlord,
property broker.
then the City can take on an instrumental role as
By directing new public/private initiatives to acquire
24
rehabilitate
and
the
and
delinquent
City's
property
foreclosed
inventory, the City will leverage and influence the redevelopment of its
neighborhoods.
2) City as Land Banker - Landbanking involves active
useful
is a
banking
of
management
and
development
method
property
for
resources.
aggregating
acquisition,
land
Municipal
for
parcels
eventual
disposition.
and
is the
assembly
Codman
Square
situation.
over
assembly
plan in the Square,
has been working on a land
25
It consists
called the Lithgoe parcel.
six storefronts (including a city-owned,
a mixture
building)
and
According
to Joe Finnigan,
has
NDEA
complete,
which
of
six
vacant
NDEA
developers
office
three story corner
and
residential
parcels.
Development,
Assistant Deputy Director for
acquired 80% of the properties.
will
Development
NDEA's
the past eighteen months,
Division
of
banking
of greater property reuse value through land
example,
An
assembly
When the land
will transfer the parcels of property as a unit to
advertise the site as a single
development
parcel.
have already expressed interest in responding to a RFP.
is
PFD
Four
In
addition, NDEA is studying the potential retail uses and market stengths
of the area.
This example of an aggressive acquistion and
strategy on the City's part,
landbanking
has increased the feasibility of marketing
the parcels, which were not of much market value on an individual basis.
By
continuing
to
commercial districts
distressed),
target anchor parcels in its
fourteen
neighborhood
(two thirds of which are currently categorized
as
the City's role is proactive in addressing the development
needs in weaker market areas.
25
and
banking
Land
can
planning
proper
future
ensure
to
help
However,
productive use of foreclosed, vacant and surplus city parcels.
there are interim responsibilities
along with these opportunities,
and
(as with being a city landlord) for holding unmarketable property
costs
Security and maintenance costs are still expenses
in the present.
the
with
inventory
substantially
thereby
neighborhood,
improve
stimulating
the
Landbanking and land
a redevelopment
of
the
involvement
in
character
visible
private
or
development
improved
are also important in key target areas where
could
banked
self-supporting
be
that it will
in heavily abandoned neighborhood areas.
assembly
project
expectation
It is only one way to establish
profit-making.
options
The City cannot acquire a land
producing parcels.
non-revenue
for
sector
additional projects.
3) City as Development Coordinator and Expeditor
Rolf
with the BRA,
of
Fellow of the McCormack Institute at the
and
programs
Director of Housing Revitalization
former
Goetze,
Massachusetts in Boston,
University
claims that private market developers
are
interested in the City's abandoned property and are ready to take a more
26
active role in neighborhood development.
NDEA Director, states that within the next four years
Paul Grogan,
abandoned
property
will
no
longer be an
issue
because
delinquent and foreclosed property will be
27
depleted due to demand for city housing.
inventory
of
If both
disposition
expeditor.
predicted
and
trends occur,
development
then the
process becomes one
City's
of
the
City's
substantially
role
in the
coordinator
and
26
are attracted to rehabilitate abandoned property if the
Developers
City
to
is able
For
financially.
through
property,
delinquent
costs
acquisition
for
properties are waived).
it
and,
simply gaining control
foreclosure,
new owners
in part,
its
tax
the City can decrease
the
(accumulated
over
on
taxes
foreclosed
If the City is owner with clear property title,
can expedite the sale or transfer of parcels to community groups
or
the City can begin
to
private
play
by
example,
administratively
needs
meet their
its
Hence,
developers for rehabilitation.
expeditor role by eliminating excessive red tape
surrounding
tax titled properties and expediting tax abatements.
III.
POLICY IMPLEMENTATION
by
content shapes implementation
Policy
defining the arena in which the process
takes place. 28
Boston is without a disposition policy.
has
no
single
implementation.
Presently, its bureaucracy
agency with control or responsibility
section
This
asks,
a coordinated task force of existing agencies?
disposition
development
is an
organizational
and
planning
integral part,
disposition
where should the City target
coordinate a disposition policy's implementation:
Boston's
for
functions,
is a
popular
and
in a new agency or in
The reorganization
of
property
which
Alternative
topic.
schemes have been outlined and debated.
of
The
following
section profiles the plans and rationale for a consolidated new flagship
department which the Flynn administration is currently refining.
27
Reorganization
Housing
Citizens
Development,
for
Department
they claim,
a
designed a
jumble
of
A
and confused of purpose."
incoherent of structure,
institutions,
They have
proposed
Development to replace the current "chaotic
for
Department
for Boston's bureaucracy.
plan
reorganization
and Planning Association (CHPA) has
would create a structure
of
and planning areas which would
29
be coherent, flexible, responsive and capable of action.
governance in the development,
Like
BRA under Ed Logue's direction in the
the
have,
would
housing,
in
effect,
a one-stop delivery
system
for
City
the
1960s,
development
projects going through the system.
The
director
of this new "Superagency" would be appointed by
Under the director would be five deputy directors
Mayor.
the
responsible
for public housing, economic development, community development, permits
and preservation,
oversee
would
and public facilities.
approximately
The Secretary for Development
areas
36 municipal functions in the
of
housing, planning, and development (see Appendix I).
the
30
following three reasons for a consolidated Department for Development.
Joe Slavet,
1)
projects
Director of the Boston Urban Observatory,
offers
Staff Efficiency - Development issues must be broken out
in order to formulate solutions.
Such a
strategy
into
requires
creating a project system with appropriate tactics to solve the problem.
In
the long run,
it
is more efficient to put together a project
staff
from an integrative staff which is already in place.
2a)
Power
Distribution
- With
reorganization
existing
agency
powers are not eliminated; there is only a sorting of powers, a changing
of who handles what powers.
28
Power to Influence - A statutorily
2b)
of
people
which
This is unlike agency "coordination"
out assignments.
carrying
reorganization
enabling powers which would effect the behavior
have
would
legislated
Slavet claims has been recently discussed in only the powerless sense of
"Coordination is meaningless unless it carries power."
the word:
3) Development Complexity - Because today's development issues are
complex
must be linked between
and
must
planning
perspectives,
physical,
be built into
the
economic,
complete
Reorganization will consolidate and build
structure.
and
social
development
planning capacity
into the system.
Opposition
Development,
to
integrative
"superagency"
in the eyes of some agency officials,
"a changing
from:
an
of
who
handles what
power."
Department
stems
essentially
A reorganization
Agencies
proposal is resisted because it is viewed as an encroachment.
like NDEA, PFD,
for
and BRA have their own well developed constituencies and
problem solving capabilities.
Alternatives
Interviews
with
PFD,
NDEA,
and BRA
administrators
elicted
no
endorsement for a major reorganizational plan to facilitate implementing
a property disposition process.
opposing
such
already exists.
a plan
The basic argument,
is that a structure
However,
for
gave,
they
property
for
disposition
these administrators readily admit that this
structure lacks formalization and an overall disposition policy to guide
decisions.
The abandoned Property Policy Board is the present forum for agency
administrators
to
meet
and
discuss
property
disposition
issues.
29
Agency
direction.
the process still requires refinement and
However,
1) a limited
coordination depends upon the following to be effective:
number of agency administrator involvement so as not to make the process
so
Office)
decisions
Mayor's
the
clear policy to act upon (as defined by
2) a
unwieldly,
3)
and
are grounded in a general framework,
a
capacity to operate on both an interim and permanent basis.
A
coordinated
not
or
whether
reorganization
Disposition decisions cannot be made in one
composed
Property,
a five member Task Force
Ideally,
are five key actors in the process.
there
Presently,
agency.
of
administration.
Flynn
the
occurs in
regardless
required
Disposition Task Force is
of administrators from the Collector-Treasurer's Office,
Real
a
City
is based
upon
NDEA,
PFD,
and
BRA
would
be able
to
implement
disposition policy.
rationale
The
respective
expertise,
the
compiles
for
list
negotiates sales,
knowledge
about
negotiates
tax
selecting
and
these five members
statutory
of delinquent
1) Collector-Treasurer
powers:
property,
3) PFD
and has eminent domain powers,
neighborhoods
agreements,
4) NDEA has extensive
and disburses CDBG funds,
controls
zoning,
property,
holds
and
has
and
5) BRA
established
development functions (however, focused primarily downtown).
Obstacles
For
Boston,
the
biggest
obstacle
of
disposition process is its lack of a policy.
grouping
forcus
of agencies,
implementing
The ambiguous
a
fragmented
operating under various mandates with a
need a central directive from the Mayor's Office.
property
limited
Without
it,
30
the
implementation
process
remains
legally,
breaucratically,
and
City needs to establish a policy and a Task Force to act
upon
operationally scattered and ineffective.
The
it.
agencies
they
Task Force would function as a core unit of the five specific
The
previously cited.
functioned
Their work would remain the
through
whether
in the present bureaucratic structure or in a newly
reorganized Department for Development.
these
same
However,
in the latter
case,
to
operate
which would facilitate the administrative and planning
process
line
agencies
would have more streamlined channels
for property disposition.
31
CHAPTER 3
PROPERTY DISPOSITION FROM A PLANNING PERSPECTIVE
32
planning
City
requires skillful management if it is to
which
property
optimally
be
A planning process must be
used on behalf of neighborhood development.
which can implement disposition policy on a neighborhood basis.
devised
The benefits of disposition planning include:
of
in foreclosed
resource
have a valuable
agencies
1) improved chances
improvement
and 2) the
a property's long term productive use,
of
neighborhood conditions for both residents and commercial users.
Specifically, this chapter will examine:
* the components of a neighborhood disposition,
planning process
e
community participation's role in that process
e
the planning objectives of property disposition relative
to neighborhood development
COMPONENTS
1) Classification Methods
and
marketing,
distinguishes
- The City can
resources
technical
more
financial,
its
target
if
it
According
to
appropriately
the needs of its different neighborhoods.
statistics from the Collector-Treasurer's Office, some Boston wards such
as Roxbury Central, Dorchester West, and Dorchester/Savin Hill have more
than
25% of their parcels in tax title,
foreclosure (see Appendix III).
than
4%.
Wide
variations
or owned by the
City
through
In comparison, Brighton-North has less
in delinquency rates by
ward
stress
the
tax delinquent
31
property based upon a neighborhood approach to the problem.
importance
of
classifying
and devising solutions for
If a City Disposition Task Force is established the primary task of
planning agency participants, such as NDEA and BRA, would be to classify
neighborhoods
by percentage of tax title delinquency,
property
types,
33
1) suitable for private use,
and appropriate reuse categories such as:
2) suitable
32
assembly.
land
delinquency,
Neighborhood classification by percentage of property
condition of stock,
or
or 3) suitable for land banking
for public use,
and reuse options would assist City efforts to plan
programs and steer public/private financial assistance where it would be
most effective and or needed.
Additional important criteria to assist neighborhood classification
concern demographic and economic shifts.
Census
The BRA has 1980 U.S.
information available for each of the city's fifteen designated planning
into dwelling unit, are all relevant data
moved
household
the year
owner-occupancy status,
Median household income,
districts.
points
to
coordinate with the City's Collector-Treasurer's statistics on number of
delinquencies, location, and length of arrearage.
Besides
classify
statistical,
financial,
and
demographic information
the City must use its eyes
its neighborhoods,
to
physically
This
inspect parcels that appear on the computerized delinquency list.
discrepancies that
now exist due to time lags
between
will
clarify
data
logging and printing as well as inaccurate past record keeping
some
City
delinquency
departments.
rates
Physically
areas
inspecting
and significant numbers of contigous
to
by
with
high
parcels
would
also assist targeting efforts.
2) Disposition Methods and Alternatives -
The City relies on the
auction process to dispose of foreclosed real estate.
sales
However, auction
are
usually
In addition,
selling
are ineffective in weak market areas because buyers
not attracted to highly deteriorated properties.
34
neighborhood
to the highest bidder in some areas may not produce what a
desires or needs in terms of housing or redevelopment.
Mayor
resident at a recent neighborhood meeting attended by
Dorchester
spoke
Flynn,
For example, one
out against the City's "disasterous" method of auctioning
The resident claimed
property to recover unpaid tax bills in the area.
that this current system of "indiscriminate selling" sometimes brings in
who deal in criminal activities,
33
welfare of the neighborhood.
new
owners
These
An alternative to the auction process is negotiated sales.
can
more
be
conditions
responsive
needs
attached to the property
be
can
to specific
of
because
neigborhoods
deed.
the
threatening
thereby
for
Request
The
Proposal (RFP) can also be used with more desirable pieces of
property,
because the review process includes criteria other than highest price to
be paid, and can allow for citizen participation in discussing issues of
best use.
regarding
the
disposition of City surplus schools, an innovative method was used.
The
Although
there
is
conflicting
public
opinion
desirable
ones.
which
might
never have been undertaken by the private sector if not required.
City
process
linked
Through
this
desirable market properties with less
"pairing method" the City assisted projects
linkage in this manner can be effective in balancing needs
property
of
stronger and weaker market areas and should be continued.
Under
certain
ownership
rather
then sold,
a
period
it
is advantageous for the City
of foreclosed parcels.
retain
over
circumstances,
If the property
this would allow additional revenues
of time to be used for other
development
to
to
is leased,
accumulate
projects
or
35
social
purposes.
equity
PFD's
Deputy
Welch,
Peter
Director,
but
the utility of leasing City property held by PFD,
acknowledged
he
was wary of how collected revenues could be used.
fund
building
is controlled primarily by PFD and
which
other development projects.
by
However, if leased, the revenues collected
specifically targeted
or
PFD
Facilities
Department
development
projects.
for
controlled
use.
development
prefer to use its
leasing
to
found in order to determine whether statute
be
Public
The
for
receipts
Peter Welch concluded that before any extensive
policy would be enacted by PFD the origin of the
leasing
need
would
for
recycled
be turned over to the City's General Fund which is not
must
capital
surplus property is sold by PFD the receipts go into a
If
would
ruling
ordinance
or
could be amended.
PARTICIPATION
In February, Mayor Flynn spoke at a Dorchester neighborhood meeting
of
(one
Mayor's
a
Office of Community Participation).
"the
wants
rather
planning
than
sponsored
City
series of meetings throughout the
by
The Mayor stated that
the
of neighborhoods to come from
from City Hall," but he admitted that
the
he
neighborhoods
administration
his
would not be able "to achieve all the things at City Hall that we
34
want
to."
Planning
groups alone.
from
the neighborhoods cannot be
In an interview,
done
by
neighborhood
Jack Hutchinson, Executive Director of
Dorchester Bay Economic Development Corporation said, "it is the experts
and
work.
community
35
in cooperation which generate ideas and make
a
project
36
Under
the
new
administration,
citizen
neighborhoods will have a larger role.
neighborhood
councils
by
the
end
participation
in the
The Mayor says he will establish
of
his
first year
in
office.
Presently, survey data collected by the administration from neighborhood
is being analyzed to determine the format, composition,
residents
role
these
councils
will
have.
Catherine
Neighborhood Participation Office says,
will
function
Ross
the
regard
Any
larger
role,
veto
to
neighborhood
would
36
authorization from the City Council and State legislature.
issues.
power,
final veto power will not reside with the
Although
Mayor's
initially neighborhood councils
in an advisiory capacity with
allowing
from
and
require
community
but
with the city's administration, there must be opportunities provided for
residents to voice their ideas,
to
agreements,
the formation of neighborhood council's,
neighborhood
planners
planning districts.
councils
when
who
would have
In addition
and dissents.
the City should
responsibility
designate
individual
for
Planners working with community groups (and through
established)
would:
1)
accumulate
neighborhood
demographic, market and job data and match development needs to relevant
programs
and
and resources,
departments,
neighborhoods
properties
on
2) provide the linkage to other City
and
3) develop
how
best
to
plans
in
rehabilitate
available for disposition.
coordination
vacant
to
with
the
foreclosed
This final point requires
the City first have a clear disposition policy to guide
second,
and
services
decisions,
that
and
a predictable process whereby community groups could contribute
proposal reviews.
Selection of developers would still reside with
the City but decisions would be based upon community input.
38
of
500
success
properties
shopsteaded
over a 7 year
is dependent on targetting,
commercial property is clustered,
period)
the
program's
neighborhoods where:
1) vacant
2) neighborhoods are on the
parking
37
lots, street reconstruction, and continued residential development.
and
3) where other revitalization efforts are onging such
upswing,
Unlike
usually
Baltimore,
additional
have
residential
Boston's
units
above
floors
mixed-used tax
with
a shopfront.
space for
Val
as
delinquent
more
Hyman,
buildings
than
of
1 or
United
2
South
End/Lower-Roxbury Development Corporation, says rehabilitation costs for
stores
tend to be lower than residential units but financing is not as
accessible
because
it
is
difficult
for
banks
commercial/residential mortgages in the secondary market.
proposes
centers
to
sell
A solution he
for redeveloping mixed use buildings located in neighborhoood
and
mechanisms
along
for
commercial
the
strips is to
different uses.
The
separate
shopfront
the
space
financial
could
be
financed with City assistance, the housing units by the banks.
If Boston had a Master Plan for its neighborhoods,
then
property
disposition would be one means of achieving it. Although disposition is
usually
a parcel
comprehensiveness
vacant,
property
by
by
parcel
focusing
process,
the
planning
can
give
on the long range productive
delinquent, and surplus property.
disposition
City
are:
it more
reuse
of
Essential tools needed for
1) property
inventory
and
neighborhood dynamics are analyzed by the City, and 2) programs designed
for
different
needs.
neighborhoods are appropriate and flexible to
community
In summary, a City disposition policy requires planning that is
part of a larger plan to improve neighborhoods physically, economically,
and socially.
37
Objectives
The
broad
objectives of a property disposition policy
in Boston
should be to:
@ halt decline of an area
*
encourage new private investment
a strengthen local tax base
* increase neighborhood housing and economic development
opportuni ties
e involve community participation in the disposition
review process for non-auctioned properties
To
increase
neighborhood
housing
and
economic
development
opportunities, neighborhood supply and demand for housing and commercial
services
must be
will
high or low.
be
planners
and
evaluated in order to determine whether project
For example,
community
developers
buildings are rehabilitated,
area must exist.
program
it is generally
that
before
risk
acknowledged
vacant,
by
commercial
a strong housing market in the surrounding
It is appropriate that the City's Housing Partnership
is focusing on upgrading housing in some of the
City's
weaker
market areas.
An
initiative
neighborhood
the
commercial
storefronts available,
City
could
revitalization,
the
homesteading
initiative.
building for a nominal fee,
be
with
is a shopsteading program.
and implemented in Baltimore in 1977,
to
implement
in
areas
blocks
ready
of
vacant
Initially developed
the program is similar in concept
A shopsteader
purchases
a
under the agreement that the building
rehabilitated and reopened with a retail establishment on the
floor.
for
However, as Baltimore's limited
vacant
will
first
results have shown (only 34 out
39
CHAPTER 4
PROPERTY DISPOSITION FROM A PRAGMATIC PERSPECTIVE
40
last
This
to eliminate,
process.
both
private
issue
disposition
the
from
(both non-profit and
for-profit)
City's
uncertainties in the
Time delays translate
financial costs for the developer,
Boston,
the
or at least decrease,
disposition
property
explores
Developers
perspective.
developers
want
chapter
into
increased
or possible project termination.
degrees)
the following uncertainties:
location
of
1) the number,
delinquent properties in the
(to
confront
and community developers
City's
In
varying
condition,
and
2) the
inventory,
community's perception towards a particular project or developer, and 3)
the
to
ability
City's
provide
administrative
financial
access,
and basic services before, during, and after a development
assistance,
project.
By
decreasing
developers' uncertainties with a more
process,
disposition
the
City
coordinated
participation
can increase their
and
improve opportunities for neighborhood development.
1. City Inventory
Boston's inventory of delinquent buildings and vacant land
represents
potential
The
developer.
entrepreneurs
help
them
opportunities
for
both
the
disposer
City has an urban resource to recycle;
looking
establish,
company,
or
and
the
developers are
for projects of financial worth which
or improve their
parcels
can
community
also
track
records.
A report produced by Living in Dorchester,
Inc., a non-profit real
estate corporation, identifies the future value in tax title property as
being "the sole source of significant numbers of new, decent, affordable
38
There are approximately 17,500 tax title
housing units in Boston."
41
39
This includes properties with liens, properties
properties in Boston.
petitioned for foreclosure,
by the City.
held
and properties foreclosed with clear
title
The City's delinquent inventory is displayed in the
following chart according to land use.
40
PERCENTAGE OF TAX DELINQUENT PARCELS
(as of April 18, 1984)
% Tax Title
Land Use
7%
single family
5%
2 family
8%
3 family
3%
4-6 units
.7%
7+ units
2%
residential land
17%
land
4%
condo unit (res.)
3%
commercial
.2%
commercial condo
1%
commercial land
1%
res. and comm.
.4%
industrial
9%
unknown use of
parcel
61.3%
Total
*
% Tax Title
(petitioned)
% of Total*
Delinquency
% Foreclosed
3%
2%
4%
2%
.05%
2%
2%
.8%
.3%
3%
.2%
.2%
.6%
.4%
.03%
1%
.2%
.005%
.2%
.02%
14%
19.2%
16.9%
10%
7%
12%
5%
.7%
2%
20%
4%
6%
.2%
1%
2%
.7%
27%
100%
Total Delinquent Parcels = 17,878
Properties
(16.9%)
than those held in tax title (61.3%).
to
actions
the
significantly
in tax possession by the City are
of the Collector-Treasurer's
This can be attributed
most
readily available for disposition,
ownership held by the City,
which
Office
imposes tax liens on properties within six months of
stock
lower
delinquency.
because of clear
is its foreclosed property.
category is the smallest in the City's inventory.
regularly
The
legal
However, this
Of 3,061
foreclosed
42
81%
Appendix
IV).
record-keeping
The City needs to improve its inventory
year
second
its
during
see
have unknown land uses (approximately 2,500 parcels,
parcels,
of
tax
computerizing
data
by
redeemed
by
delinquency
identifying the land use of such parcels.
Properties
their
The
owners.
be
for foreclosure can still
petitioned
majority of
comprised
those
held
of single family houses,
residential
units
structures,
and buildings with 4 to 6 units.
are
category
in this
3 unit
2 and
This property is 83% of
all tax-title petitioned parcels and 11% of all delinquent properties.
Besides uncertainty as to what parcels are delinquent or foreclosed
and available for purchase,
developers face a legal obtstacle with some
properties.
A majority of vacant and/or deteriorated properties are not
by
lien
Instead they are in a "gray area" where the City has
51
If clear title to
ownership.
legal
not
but
property,
the
on
a
finance
a
the City.
The
project.
obtained by a developer,
not
is
property
and
owned
not
banks will
a
process can prohibit delinquent property from being sold
rehabilitated.
More
expeditious foreclosing could
increase
the
availability of vacant and delinquent properties to be redeveloped.
2. Community Perception
possibility of community opposition to a development
The
can cause a developer,
community,
to
rehabilitation
outright
future,
veto
especially a private developer from outside
hesitate
efforts.
proposal
before
becoming
involved
in neighborhood
Although neighborhoods in Boston do not
power over a project (and will not,
the
in the
have
foreseeable
even with the establishment of councils) they do have political
43
influence
to
powers
with
(especially
and
district
sway
and
officials
representation
where
administrators
city
are
councilors
now
accountable to specific constituents).
the situation where a
is
Familiar
private
who advocate against a project.
Less typical is the
community
groups
situation
where a community group will closely monitor the
process of a project it
supports which may proceed to face
delays in its implementation.
from
uncertainty
the
encounters
developer
development
bureaucratic
Community based developers encounter less
neighborhood and more support than
private
new
developers without a track record in the area.
channels of participation,
Formal
would serve to coordinate city,
councils,
such as neighborhood
community, and developer communication.
type of forum could help a development process underway but
This
faced
with bureaucratic delays which could threaten the success of a project.
3. City Support
City
efforts to revitalize neighborhoods require commitment
are
projects
completed as well as during earlier stages
Dick Jones, Executive Director of MURAG,
after
planning.
of
in an interview said the City's
are more crucial
42
for property disposition efforts than financial assistance."
"planning and follow-through capacity,
City has been involved with a number of community
The
(CDCs)
corporations
commercial
districts.
rehabilitating
for
police
artists,
anchor buildings
development
in neighborhood
An example of City "follow-through"
work with the Fields Corner CDC.
former
at this point,
is NDEA's
The CDC is currently rehabilitating a
station in its neighborhood into eleven live/work
with commercial space on the first and
basement
units
levels.
44
The project's success is dependent on more than City financing, although
that
an important part.
is
According to David Flad,
NDEA's
project
manager, the City is assisting construction financing with a UDAG grant,
CDBG monies, and an EDAP loan (Economic Development Assistance Program).
The
CDC has a one year MAP grant which
has provided $25,000 to hire
assistant who will locate tenants for the
project
building.
NDEA
a
is
paying monthly newspaper advertising costs to market CDC building space.
The City is also implementing a technical Assistance Program (TAP) which
disburses grants to CDCs who can then hire consultants to assist them on
specific development projects.
The
grant
term
City's
funding)
is an important ingredient to ensure a project's
and
ownership
management.
This
is especially
long
important
based project sponsors who may have the drive and
community
through
provision of technical assistance (indirectly
desire
for
to
implement a rehabilitation project but may lack sufficient technical and
financial
resources.
In addition to targeting assistance to community
NDEA has also developed financing incentives for tenants in
developers,
rehabilitated
buildings through LEND (Loans to
Encourage
Neighborhood
Development).
Although
of
financial and technical assistance are major determinants
a project's success,
in an area undergoing
improvements
protection
also important are City services
rehabilitation.
and
Police
as well as street and sidewalk resurfacing provide
public
and
fire
security
and show City commitment to the neighborhood.
The
City
inventory alone;
cannot rehabilitate its vacant and
abandoned
property
it requires private and community initiatives as well.
45
To
improve
streamline
information.
assistance
developer participation the burden falls upon the
its
administrative
channels and obtain
accurate
It already has begun to improve technical and
to project developers which will serve to ensure
productive reuse of foreclosed properties.
City
to
property
financial
l ong
term
46
CONCLUSION
Currently,
unique
neighborhoods.
elements
for
of
agency
are
initiatives.
mandates
cause
long
properties,
delinquent
neighborhoods,
redevelopment
City
conflicting
and
Abandoned
deteriorating
catalysts
development opportunities exist within Boston's
now
the
However,
the
the
structural
unclear
and
to
bureaucracy
move
inefficiently towards facilitating neighborhood development.
City
policy,
neighborhood
development
a coordinated process,
and targeted plans.
a disposition
The
opportunity
of having property disposition remain a random process are
costs
in decreased developer participation because
It results
administrative assistance,
are
is impeded without
rehabilitated,
residents
and
and
high.
of
uncertain
a lower city tax base because few
buildings
the
erosion of
neighborhood
confidence
potential investors who see few initiatives
for
planned
or
options available for redevelopment.
Neighborhoods change physically,
pass along a continuum of stability,
economically,
and socially; they
decline, and transition.
In order
for the City to be responsive to changing neighborhood development needs
it must
Varying
plan
strong
its disposition
policy
(once
clearly
percentages of tax delinquent property in Boston's
neighborhoods
specific
from
diversified
require different disposition methods appropriate to
area's economic reality.
market
defined).
areas,
and
This would
include:
negotiated sales in weaker
the
auctions
markets
in
where
control over a development's reuse could be stipulated in the property's
deed.
47
The City's current tax delinquency problem took fifteen years to
43
A combination of changing social demographics, an exiting job
evolve.
base, lower inner city household incomes, increasing housing maintenance
costs, and antiquated foreclosure laws contributed to the problem.
(approximately
17%
of
all
redeveloped, or resold within
In the meantime,
City
d
tax
of
inventory
significant
City's
The
parcels)
will
properties
title
be
not
redeemed,
couple of years.
the City has an opportunity to carefully study and
the disposition of some of its key foreclosed and surplus parcels.
plan
Currently,
neighborhood
property delinquency data are being
collected
However, this
and monitored through the City's computerized inventory.
information must be accessible and extensively discussed among planners,
community
groups,
and
developers
in order
to
generate
appropriate
redevelopment alternatives.
Ed Logue, former BRA director, commenting at the Boston Conference*
said that "there is no developer alive, nor is there any architect alive
44
The same could be said for
who can be trusted to do urban planning."
neighborhood planning.
linked
Community participation must be more predictably
to the professional realm.
councils
are
complimentary
designate
The Mayor's proposed
one means to achieve this from
effort,
neighborhood
from
the
planners
top-down,
in its
the
neighborhoood
bottom-up.
would be for the
bureaucracy
to
work
neighborhoods.
*
A series of four public meetings on the future of Boston and
its neighborhoods, held during April and May 1984.
Another
City
to
within
4.0
newly
The
Today, it
development.
if
can begin by establishing
administration
The
has an opportunity to generate concrete results
uses the City's its tax delinquent stock as an
it
policy
a
achieve
them
the City,
resource.
urban
disposition
property
which is flexible and comprehensive in scope,
agency functions to implement it.
to
neighborhood
advocates
administration
elected Flynn
and
coordinating
With established goals and the means
and
joined by community
private
sector
development and financial forces, will have a target to aim for.
Neighborhood
development
planning will be ineffective,
results
implementation
will
vehicle
be minimal,
are
not
and concrete long term
if a policy
first
framework
established
for
and
an
property
disposition.
Boston is fortunate to have a problem, such as delinquent property,
which
if
also provides the means to develop and renew its neighborhoods
properly directed.
-
CHPA REORGANIZATIONAL PROPOSAL
)iiector of Development
-
Dlesaigner Selection board-
-
-
[eiqhborhood Development Trust
Planning 6 Design Review Commission
dent
pt y
rec
Putltc ftoustri
Housing
Authr
snisron
n
ity
Deputy
conomic Develoment
lievelooment
Economic
Industrial
Ary
commassaant
eputy 1rector
mmunitj gvelopmELtI
iboston led
1 uthor ty
I LA
industrala
pevehnyBenit financing
Author sty
epu
Dector
Permits 4 Presesvatgo
velopment :Landmarks Commission
onservat-ion Comm.
Architectural Contro
epu y
Public
Public rac'itles Dept
Urban
Comm.
Real
o.1-cIty
Commia
t(All
IIomestead
e
Commission
Ill
sect
riAct
Buildng
Housing
E
-
-e.-
I
APPENDIX I
LesinBard
sOn
Cos is&s11.n
Emergency Shelter
ement
Depar
inspection
Boar
oEaminer&
Toinin Nsalson
-
heal
Forecionued.
Beracon
come.
Estate
IArchltecturcal
&oord of RlealEstate
BIack bay ArchiteC(mmissio
ne--s
tural Commtsain
Eay Village HistoricForeclsed Prog-rs,
or
Tr asur e
(Col
Dist
-Ar son Ps event
!Art C ommi saiOn
Roard cc Appal
--
PctI
or
Failiti1es
'
Comsin
5
CURRENT
ORGANIZATION OF BOSTON'S CITY GOVERNMENT
0
I
(
--
--
..
..
,-.....
.AL ammeta
I.-4.-4-4--
a
I*
.
,..,..
LThegs~
--
4
onts
**.'4'C.......
~.'j
CH.Ati £6fGN(DA14U611.d.UAP40
APPENDIX 11
BV
1-4
51
APPENDIX III
PERCENTAGE OF TAX TITLE PROPERTY
BY CITY WARD
PARCELS IN EACH WARD
IN TAX TITLE STATUS OR
OWNEDBY THE CITY THROUGH FORECLOSURE
6
WARD NUMBER
Lii
less than 10%
10 to 15%
.EAST BOSTON
2CHARLESTOWN
3.BOSTO4 PROPER
4.BACX BAY, SOUTh
5 BACx BAY
6. SOUTH, BOSTON.NORTH
7 SCUTH BOSTON. SOUT1
SPOX8URYEAST AND SOuTH
9. ROXBURY CENTRAL
iQ-RCx8URy,*EST
'I. ROxBUR, SOUTH- EGLESTON SQUARE
AND FOREST HILLS
2 OXURI EAST
13:ORCHES-E AND SAWNt
4 OCRCSE.RR, wE,5
hILL
15. DORCHES-ER,NCPTM CENTP,
'6. DORCESTER, SOU74
17 WORC.ESTER, CEN7.R
18-.
HYTDEFARK AND MAT-TAM
19 JAMAXCA-PLAIN A-ND,RCSLuDaL
21. WEST ROXBURY, ROSU.1NDALE
2. BRIGHTON, SOUTh
Z BRIGHTON..NORTh
15.1 to 25%
more than 25.1%
WARDS, CITY OF BOSTON
[A.
Data Source: Collector-Treasurer's Office
May 1983
From the Report: ''Tax Delinquent and Abandoned Property in Boston:
The Current Process and Recommendations for Improvement.''
52
FINAL TOTALS
City of Boston Tax Delinquent List (Commercial)
Appendix IV
Land Use
Code
Delinquency Status
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
TOTAL
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
TOTAL
R1
R2
R3
R4
A
RL
L
CD
(petitioned) Rl
(petitioned) R2
(petitioned) R3
(petitioned) R4
(petitioned) A
(petitioned) RL
(petitioned) L
(petitioned) CD
(petitioned)
Tax Possession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
TOTAL
Code Descriptions
Rl
R2
R3
R4
A
RL
Rl
R2
R3
R4
A
RL
L
CD
Grand Total Due
$3,179,285.86
2,838,424.11
7,781,975.29
6,674,411 .63
421,788.09
131,793.76
16,834,866.65
751,510.42
13,251 ,389.47
$51,865,445.28
Items:
Items:
Items
Items:
Items:
Items:
Items:
Items:
Items:
2,677,529.28
3,140,667.96
8,401,320.22
8,738,034.65
.00
184,372.02
5,785,797.14
.00
5,815,632.15
$34,743,353.42
Items:
Items:
Items:
Items:
Items:
Items:
Items:
Items:
Items:
311,369.11
760,453.63
1,721,851.65
2,925,156.88
.00
21,596.65
3,167,623.71
.00
9,716,302.26
$18,624,353.89
Items:
Items:
Items:
Items:
Items:
Items:
Items:
Items:
Items:
1 270
883
1,340
504
120
416
3,119
768
1,597
10,017
487
392
734
358
9
409
619
3,008
32
40
110
76
6
266
2,531
3,061
-
single family
2 family
3 family
4-6 units
7+ units
residential land
L - land
CD - condominium (residential)
-- - unknown use of parcel
53
FINAL TOTALS
City of Boston Tax Delinquent List (Commercial)
Appendix V
Delinquency Status
Tax Title
Tax Title
Tax Title
Tax Title
Tax Title
TOTAL
Tax Title,
Tax Title
Tax Title,
Tax Title
Tax Title
TOTAL
(peti tioned).
(petitioned)
(peti tioned)
(petitioned)
(petitioned)
Tax P)ssession
Tax Possession
Tax Possession
Tax Possession
Tax Possession
TOTAL
Land Use
Code
C
CC
CL
RC
I
$11 ,387,654.28
98,309.30
305,213.90
3,858,263.48
1,157,026.85
$30,057,857.28
Items:
Items:
Items:
Items:
Items:
C
CC
CL
RC
I
12,923,246.75
.00
.00
3,247 ,797.48
2,048,137.15
$24 ,034,813.53
Items:
Items:
Items:
Items:
Items:
C
CC
CL
RC
I
3,867,240.75
00
5,790.58
1,702,611.42
410,518.71
$15,702,643.72
Items:
Items:
Items:
Items:
Items:
CODE DESCRIPTIONS --
C
CC
CL
RC
I
Grand Total Due
Commercial
Commercial Condominium
Commercial Land
Residential and Commercial
Industrial
613
38
177
258
65
2,748
380
138
51
1,188
38
1
30
3
2,603
54
NOTES
1.
Peter D. Paul, "Abandoned Housing: An Urban Asset" Practicing
Planner, Vol. 8 No. 3, September 1978, p. 25.
2.
Neighborhood Development Employment Agency, City of Boston,
"City of Boston Tax Delinquent List: Residential and Commercial," April 18, 1984.
3.
David Purcell, "Boston is Hammering Out Solutions for Restoring
City's Abandoned Housing," The Christian Science Monitor,
January 10, 1984.
4.
Executive Office of Communities and Development, "Tax Foreclosure
and Abatement: Tools for Returning Property to Productive
Use," Neighborhood Bulletin Commonwealth of Massachusetts,
March 1981, p. 2.
5.
Laura Wiener, "Local Strategies for Reclaiming Tax Delinquent
Abandoned Housing," Dept. of Urban and Environmental Policy,
Tufts University, May 1983, p. 48.
6.
Executive Office of Communities and Development, op.
p. 2.
7.
Wiener, o. cit., p. 53.
8.
Ibid., p. 53.
9.
Housing and Urban Development Committee, "Summary of Tax
Delinquent and Abandoned Housing Proposal," Mass. Senate,
Boston State House, March 1983.
10.
Ibid.
11.
Conversation with Lori Goldin, Real Estate Attorney, Boston
Public Facilities Department, Mary 18, 1984.
12.
Conversation with Kenneth Glidden, Collector-Treasurer's Office,
Boston, May 18, 1984.
13.
Executive Office of Communities and Development, op.cit.,
p. 10.
14.
Ibid, p. 9.
15.
"Conversation with Fred Pelligrini, Real Property Department,
Boston, MA, April 1984.
16.
Boston, Office of the Mayor, "Boston in Transition:
and Policy Analysis," January 1984, p. 20.
cit.,
A Program
55
17.
Conversation with Joseph Finnigan, Development Division, NDEA,
April 18, 1984.
18.
Boston Office of the Mayor, op.cit., p. 234.
19.
Jeffrey Pressman and Aaron Wildavsky, Implementation, Second
Edition, University of California Press, 1977, p. 183.
20.
Anthony Downs, Inside Bureacracy, Little Brown and Co.,
Boston, 1967, p. 215.
21.
Conversation with Sandra Rose, Assistant Manager for Abandoned
Property Resources and Management System, NDEA, April 23, 1984.
22.
Pressman and Wildavsky, op.cit., p. 183.
23.
"Boston Housing Partnership Prepares for First Rehabilitation
Project," The Boston Globe, December 10, 1983.
24.
Rolf Goetze, "Boston's Housing in 1984: Issues and
Opportunities," prepared for the John W. McCormak Institute
of Public Affairs, December, 1983, p. 5.
25.
Conversation with Joseph Finnigan, Assistant Deputy Director
for Development, NDEA, April 18, 1984.
26.
Goetze, op.cit., p. 19.
27.
Paul Grogan, Director, NDEA, MIT Seminar, March 27, 1984.
28.
Pressman and Wildavsky, op.cit., p. 188.
29.
Citizen Housing and Planning Association (CHPA), "Boston's
Development and Housing Functions: A Reorganizational
Proposal," Boston, November 1, 1983, p. 1.
30.
Conversation with Joseph Slavet, Director of Boston Urban
Observatory, April 20, 1984.
31.
Finney and Salama, op.cit., p. 27.
32.
Susan Olson and M. Leanne Lachman, Tax Delinquency in the
Inner City, D.C. Heath and Co., Lexington, MA, 1976, p. 59.
33.
Peggy Hernandez, "Dorchester tells its Troubles,"
Globe, February 22, 1984.
34.
Ibid.
35.
Conversation with Jack Hutchinson, Executive Director, Dorchester
Bay Economic Development Corporation, Dorchester, MA,
March 28, 1984.
The Boston
56
36.
Conversation with Catherine Ross, Neighborhood Participation
Office, City of Boston, April 19, 1984.
37.
Conversation with Roseann Walsh, Department Housing and Community
Development, Baltimore, MD, April 16, 1984.
38.
Living in Dorchester, Inc., "Analysis of Boston's Tax Title
Property," Dorchester, MA, February 1983, p. 1.
39.
NDEA, op.cit.
40.
Ibid.
41.
Wiener, op.cit., p. 59.
42.
Conversation with Dick Jones, Executive Director, MURAG,
Boston, MA, April 18, 1984.
43.
Living in Dorchester, op.cit., p. 4.
44.
Ian Menzies, "Turning City-Planning Ideas into Reality,"
The Boston Globe, May 21, 1984.
57
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59
INTERVIEWS
Christopher Carlaw
Deputy Director of Development,
Boston Redevelopment Authority
Joseph Finnigan
Assistant Deputy Director, Development Division
Neighborhood Development and Employment Agency Boston
Ron Hafer
Executive Director
Urban Edge, Inc., Jamaica Plain
Jack Hutchinson
Executive Director
Dorchester Bay Economic Development Corporation
Val Hyman
- Executive Director
United South End/Lower Roxbury Development Corporation
- Chairman
State Association of CDCs
Dick Jones
Executive Director
MURAG
Howard Leibewitz
Special Assistant to the Mayor on Housing
Office of the Mayor, Boston
Robert Moran
Chief Legal Counsel
Real Property Department, Boston
Peter Munkenback
Director of Development
Greater Boston Community Development, Inc.
Carole McCreavy
Attorney
Real Property Task Force, Lawrence
Jane Noonan
Project Manager
Public Facilities Department, Boston
Fred Pelligrini
Real Property Agent
Real Property Department, Boston
60
Greg Polk
Real Estate Consultant
Former Director of Allston-Brighton CDC
Catherine Ross
Administrative Assistant
City of Boston Neighborhood Participation Office
Joseph S. Slavet
Director
Boston Urban Observatory
Mark Snyder
Attorney
Real Property Department, Boston
Sandra Rose
Assistant Manager for Abandoned Property Resources
and Management Systems
Neighborhood Employment and Development Agency
Peter Welch
Deputy Director
Public Facilities Department, Boston