The City of Pittsburgh Property Reserve:
A Guide for Community Development
Corporations
Prepared for the Vacant Property Working Group (VPWG)
A Pittsburgh Community Reinvestment Group (PCRG)
Program
Bethany E. Davidson, Staff
Pittsburgh Community Reinvestment Group
1901 Centre Avenue, Suite 200
Pittsburgh, PA 15219
Tel: (412) 391-6732
Fax: (412) 391-6737
www.pcrg.org
The City of Pittsburgh Property Reserve:
A Guide for Community Development Corporations
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TABLE OF CONTENTS
Introduction
History and Background
PA Second Class City Treasurer’s Sale and Collection Act
The Vacant Property Working Group (VPWG)
Creation of the City of Pittsburgh Property Reserve
Vacant Property Acquisition Programs in the City of Pittsburgh
Due Diligence: Accurately identify your land & your revitalization strategy
City of Pittsburgh Side Yard Sale Program
Private Partnerships and Real Estate Owned (REO) Property
The City of Pittsburgh Property Reserve
Property Information Request
Application and Selection
Treasurer’s Sale and Redemption Period
Deposit and Promissory Note
Clearing Title
Lien Buybacks
Settlement
Default Provisions
Other Property Acquisition Issues
Inclusion of City Owned Property in the Reserve
Inclusion of Occupied Property in the Reserve
The Property Reserve and For-Profit Developers
List of Attachments
A. Resolution and Memorandum of Understanding Establishing the Property
Reserve
B. Side Yard Sale Program Guidelines
C. Request to Purchase Three Taxing Body Property
D. Project Feasibility Application
E. Sample Notification of Approval Letter
F. Promissory Note
G. Proposal to Purchase Property from Land Reserve
H. Sample Settlement Sheet, provided by ELDI
I. Policy Governing Inclusion of City Owned Property in the Property Reserve
J. Policy and Procedures for Property Flipping
K. Revised Procedures City of Pittsburgh Land Reserve Applications
L. Policy on Time Extension Request
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INTRODUCTION
At the core of the ongoing effort to keep Pittsburgh’s neighborhoods vibrant, to revitalize
areas that have seen decline and to ensure a high quality of life for all of Pittsburgh’s
residents, is the necessary ability of those professionals and volunteers to have access
to the land, the finite resource that is the literal physical foundation of our communities.
Over time, state and local legislation, city agencies and nonprofit partners have worked
to create a system within the City of Pittsburgh to give 501c3 community organizations
access to tax delinquent, distressed land at as an affordable rate with the most efficient
process as possible.
What follows is a guide that explains the history of this system and the roles,
expectations, and commitments of the various actors that work and interact with it.
HISTORY AND BACKGROUND
Pennsylvania Second Class City Treasurer’s Sale and Collection Act
The City of Pittsburgh utilizes a State-governed process, a Treasurer’s Sale as the
primary method of enforcing payment on delinquent municipal taxes. Through this
process, the City can initiate a tax foreclosure, similar to a bank mortgage foreclosure,
and thus acquire property. The Second Class City Treasurer’s Sale and Collection Act
of 1984 defines the public process for the:
“charge against real property, liened or unliened, held by a taxing body or an
authority created by that taxing authority on account of delinquent real estate
taxes, water rates, sewer charges, municipal assessments, municipal
judgments, demolition liens, or other amount due to a taxing body under the
Municipal Claim and Tax Lien Law of 1923.”
According to Pennsylvania law, tax claims-including water rates and sewage service
charges-hold a first position lien against a property from the date when the charges
become immediately past-due, which gives that lien priority over any other claim against
the property including mortgages, judgment claims, liens or other obligations with which
the property is charged. [Note: a lien is a legal hold or claim on a property as security
for a debt or charge. It can be voluntary such as a mortgage or involuntary such as for
back taxes. A lien holder (or lienor) has the legal right to take another's property if an
obligation is not met.]
A Treasurer’s sale is a public (as required by Pennsylvania state law) sale in which a
minimum sale price is established and public bids are accepted for purchase. The
minimum price at sale, set by the treasurer, covers delinquent taxes, liened and
unliened; water rents; sewage service charges; and other municipal claims. It is
important to remember that the treasurer’s sale system is primarily intended to be a tax
collection mechanism, not a property foreclosure mechanism, such as the Allegheny
County Sherriff’s Sale.
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During a Treasurer’s Sale, the city Treasurer is responsible for conveying official notice
to interested parties at some point in the process. As the system currently in place only
notifies the Three Taxing Bodies (or 3TB – City of Pittsburgh, Allegheny County, and
Pittsburgh Public School System) at time of sale, not all interested parties, what is
conveyed at the end of the Treasurer’s Sale is a more limited Treasurer’s (or Quit
Claim) Deed. Purchasing a property at sale does not actually satisfy (neither make
whole nor have forgiven) any liens or judgments outside of the municipal claims of the
3TB. The purchaser only receives a treasurer’s deed to the property, making them
responsible for further notifications and satisfaction of all other entanglements against
the property (also known as clearing title), which is why the typical purchaser of property
at a treasurer’s sale is the taxing body itself (typically the taxing body that initiated the
sale-in most cases, the City of Pittsburgh).
In order to clear the title to a property acquired at a treasurer’s sale, thus creating a free
and clear, insurable title, the taxing authority (or any other individual or entity) acquiring
the property must ‘file a petition in person with the court to quiet title to the property
acquired at treasurer’s sale, in favor of the city. Only those interested parties who had
no prior notice may appear and protect their interest by paying all claims and liens that
have priority senior to their interest. Liens, including tax and municipal claims, shall be
stricken from the subject property by the order granting clear title.’
Properties can be identified for a treasurer’s sale after one-plus prior years of tax
delinquency. The City uses the sale as a tax collection mechanism and will place
properties into the sale for municipal revenue generation purposes. The City does not
use the sale as a mechanism for acquiring property for their own portfolio, save to decommission land or add to greenways, although the sale can be used as an acquisition
tool for the Urban Redevelopment Authority (URA) and for non-profit community groups,
most often CDCs (Community Development Corporations) or CBOs (Community Based
Organizations).
The Vacant Property Working Group (VPWG)
Despite having the enabling legislation, the City of Pittsburgh was hesitant to utilize the
treasurer’s sale process to tax foreclose on property as there are potential negative
political and public perception implications. At the same time, the city wanted a less
political and more affordable means of recycling property and returning otherwise
viable, but currently unproductive properties, back to the tax rolls. In 1988, a volunteer
sub-committee was formed with the goal of creating the most efficient, lean property
acquisition process (which initially meant decreasing the lengthy interested parties
‘redemption period’) and to work on creating a program for the acquisition of the everincreasing supply of side yards. The committee was successful in both establishing a
Side Yard Sale Program and reducing the redemption period from one year to 90 days.
The evolution of this effort was a more formalized roundtable, the Vacant Property
Working Group (VPWG), now housed at the Pittsburgh Community Reinvestment
Group (PCRG). The VPWG has been meeting for more-than 15 years on a monthly
basis and was first staffed in 2003, supported by CDBG funds. The VPWG is a City-
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wide working group discussing and dealing with the holistic spectrum of issues
associated with vacant properties, open to any and all in the City.
The Pittsburgh Community Reinvestment Group’s Vacant Property Working Group
(VPWG) is a coalition of community stakeholders working collectively toward the
eradication of vacant and nuisance properties in the City of Pittsburgh and Allegheny
County. Nearly 50 organizations work with VPWG on an on-going basis, sharing
information, assisting with project development, and seeking input from community
members. VPWG partners include community organizations, faith-based entities,
government agencies, financial institutions, universities and other community
stakeholders.
The VPWG mission is “to build and refine the policies, programs and resources
necessary to recycle vacant land and promote community revitalization.” While the
VPWG advocates for sound public policy regarding vacant property, land recycling,
blight elimination, and land use, one of the ongoing core functions of the program is the
administration of the City of Pittsburgh Property Reserve.
Each year, the VPWG engages in initiatives that benefit Pittsburgh’s entire community
revitalization field. These projects provide community development professionals
educational training, resources and opportunities to engage in decision-making efforts
that affect how our region is (re)developed.
Among its successes, the VPWG worked with the City to create the Property Reserve
by Council bill 402 on June 25, 1998.
Creation of the City of Pittsburgh Property Reserve
In 1996, the City of Pittsburgh and Pittsburgh Public Schools sold a tax lien portfolio
(consisting of all existing delinquent tax files) to National Tax Funding, L.P. to be
serviced by Capital Asset Research Corporation (CARC). The portfolio sale included all
City and school district real estate tax liens as well as water and sewer liens (as held by
the Pittsburgh Water and Sewer Authority, PWSA) through 1996. The agreement also
established a purchase option of additional liens issued in the years 1996 to 1998 that
were subsequently purchased.
The possibility of a portfolio sale raised concerns among community organizations as to
what might happen to large tracts of vacant property in their communities, should the
private party lien purchaser require payment on these liens before a clear title and
revitalization project could begin where traditionally the municipal entities had just
forgiven them. This would make acquisition incredibly cost-prohibitive or even
impossible. Through the work of the VPWG, an agreement was reached that provided
community development organizations the opportunity to identify and exclude property
from the three (1996, 1997 & 1998) tax lien portfolio sales. A Memorandum of
Understanding (MOU) was established between the City of Pittsburgh, Urban
Redevelopment Authority (URA), and the Pittsburgh Community Reinvestment Group
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(PCRG). This agreement established: (1) a process that allows Community groups to
identify and exclude properties prior to each lien portfolio sale and (2) a property
reserve to act as a placeholder for designated near-future targeted revitalization
properties. The complete City Council Resolution and MOU are included in Attachment
A. This is the legal document establishing the property reserve process and also
outlines all administrative policies and procedures to be followed by all parties.
An agreement was also crafted between the VPWG and Capital Asset Research
Corporation that established the parameters of a working relationship. The agreement
was meant to ensure consistent communication and reporting back and forth between
the parties, including the disclosure of monthly portfolio reports, including attempted
collections, judgments, and actual collected revenues.
VACANT PROPERTY ACQUISITION PROGRAMS IN THE CITY OF PITTSBURGH
In the 2003 report Reclaiming Abandoned Pennsylvania, the Housing Alliance of
Pennsylvania estimated that the City of Pittsburgh has nearly 19,000 vacant and
abandoned properties when counting both land with and without structures. Vacant
properties cost municipalities money by decreasing property values, increasing crime,
health and safety concerns, and contributing to the overall deterioration of
neighborhoods. Nuisance properties and negligent property owners erode the quality of
life for residents and prevent private investment in neighborhoods.
DUE DILIGENCE:
The identification of vacant, abandoned and nuisance properties is the critical first step
in abatement. Currently, there are a number of programs and mechanisms in place for
community organizations to abate or acquire vacant and nuisance property. Before
deciding upon an acquisition strategy, a CDC must conduct the necessary due diligence
to choose the most cost effective and appropriate method for addressing a vacant
property. A minimum amount of research must be conducted to understand the
property history and to be able to weigh options for abating problems associated with
the property. Basic property information that should be compiled includes:
Location: Can you identify the correct street address and lot and block number. Make
sure to cross check your location information with both the City and County.
Owner of record: Is the property privately owned, publicly owned, owned by a bank or
corporation? Identifying the owner can aid in direct purchase negotiations.
Vacancy status: Is the property vacant or occupied? Even if it is tax delinquent and
appears to be vacant, anyone residing in a structure (legally or illegally) could trigger
(federal) relocation costs in development if you are using public funding, such as CDBG
or URA money.
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Tax delinquency: Is the property at least two years delinquent on city taxes? How
much is owed on the property? If there is very little owed, it is likely a property owner
will redeem the property before it goes to sale.
Liens or foreclosure activity: Identify any additional claims or judgments made on a
property by using the Prothonotary website. If there are other claims on a property, a
foreclosure process may be another option for acquisition.
Below are common resources where most of this information can be obtained:
Allegheny County Real Estate – Basic property information and county tax information
www2.county.Allegheny.pa.us/RealEstate
City of Pittsburgh Tax delinquency report – City real estate tax delinquency
http://www.city.pittsburgh.pa.us/finance/html/tax_delinquency_report.html
Allegheny County Prothonotary – Liens, foreclosure activity, and other claims against a
property
http://prothonotary.county.allegheny.pa.us/
Based upon property research, there are a number of different paths a community
organization may choose to address a vacant property. It is important to remember that
each property will have unique circumstances that may prevent a certain approach from
working. CDCs are encouraged to work closely with the VPWG manager to target
problem properties or properties needed for a larger development deal.
City of Pittsburgh Sideyard Sales Program
The VPWG was instrumental in the creation of a City Sideyard Sales Program that
provides property owners an opportunity to affordably purchase an adjacent, vacant lot.
The program is an effective means of recycling vacant land and increasing property
values for a homeowner as well as improving the appearance of a neighborhood. The
Sideyard Program receives a line item in the City Capital budget annually (was
$250,000 in the 2006 budget) and is often overlooked and underutilized by residents
and community groups. Community organizations need to play an important role in the
marketing of the sideyard program and should educate residents about this opportunity
if there are suitable vacant lots in the neighborhood.
In order to be eligible for the sideyard program, a resident must own the property that
directly borders the vacant lot and be current on all taxes. Additionally, the lot must be
deemed unsuitable for development and must be owned by the City. If the lot is not
owned by the City, a request can be made for the City to acquire the property through a
treasurer’s sale. A complete list of program guidelines is included in Attachment B. The
total cost for acquiring a lot through the Sideyard program is approximately $400 and a
resident interested in purchasing a vacant lot through the sideyard program must submit
a Request to Purchase Existing Three Taxing Body Property (Attachment C) to the City
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Real Estate Department. Any questions on the City Sideyard Sales Program should be
directed to the City Real Estate Department.
Bank-Owned/REO Property
The Pittsburgh Community Reinvestment Group (PCRG) has established relationships
with 14 local financial institutions as well as national lenders such as CitiFinancial,
HSBC, and Chase Home Finance and corporations such as Fannie Mae. As part of this
working relationship, local and national lenders regularly provide PCRG with updated
lists of their Real Estate Owned (REO) properties. These lists are distributed to
community organizations that can then identify any properties in their neighborhoods
that they would like to target for homeownership opportunities or to acquire for a
development project. CDCs and community organizations can provide service to a
lending institution by helping them sell properties in their REO property portfolio and this
is a valuable service that PCRG partners have access to. Additionally, if a property
identified by a CDC is owned by a lending institution, we encourage you to contact
PCRG staff to see if they can facilitate a purchase negotiation.
The City of Pittsburgh Property Reserve
The land reserve is intended to be a tool for non-profit CDCs to affordably acquire and
assemble vacant land for development projects. Properties identified for the land
reserve must be part of a strategic rather than speculative development plan as defined
by the CDC business plan or neighborhood plan. Organizations who wish to utilize the
land reserve as part of their development strategy must adhere to the process
guidelines and communicate with the VPWG manager on a regular basis.
I.
Property Information Request
If the appropriate path for acquiring a property is determined to be the Treasurer’s Sale
and Land Reserve, then a CDC must submit an information request to the Pittsburgh
Community Reinvestment Group (PCRG) Program Manager for the Vacant Property
Working Group (VPWG). The deadline for requests to PCRG is noted in the
Treasurer’s Sale schedule, and is usually 12 weeks prior to the Treasurer’s Sale date.
Requests should be e-mailed to bdavidson@pcrg.org and should include the following
information:






Lot and Block
Street Address
Owner of Record
Ward
Vacancy Status (Vacant, Y/N)
Vacant Lot/Structure
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The basic requirements for a property to be considered for the reserve are that the
owner must be at least two (2) years tax delinquent and that the property is vacant.
After compiling all requests, the VPWG manager acts as facilitator between CDCs, the
City and URA. This initial request step will identify any major problems associated with
a property of interest and will also allow the CDC to understand what may be involved
with a property before investing time in the completion of a formal application. Flags
that may occur in this stage include owners on payment plans or who have filed for
bankruptcy and properties with large amounts of encumbrances. If properties submitted
are unable to be processed for the sale, the City will notify PCRG who will then provide
notification to the appropriate development corporations.
II.
Application and Selection
If properties are determined to be eligible for the treasurer’s sale, a CDC must then
submit a Project Feasibility Application (Attachment D). The application provides
information pertaining to the plan for the property, including detail on the development
project that it is a part of. Applications must be complete and should provide as much
detail as possible regarding property research, development plans, and sources of
development financing. The MOU states that “URA pre-application properties approved
for placement in the Land Reserve will be treated as properties being transferred to the
URA.” Therefore, it is at the discretion of the URA which properties are accepted
according to their development and funding standards. A written development and
financing plan must be available.
Project Feasibility applications are available through PCRG and once completed should
be sent to the following agencies:
Urban Redevelopment Authority of Pittsburgh
200 Ross Street
Pittsburgh, PA 15219-2069
Attn: Jerome Frank
Tel: (412) 255-6672
Fax: (412) 255-6645
City of Pittsburgh Department of Finance
200 City-County Building
414 Grant Street
Pittsburgh, PA 15219-2476
Attn: Mary Lou Tenenbaum
Tel: (412) 255-2468
Fax: (412) 255-2438
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Pittsburgh Community Reinvestment Group
1901Centre Ave Suite 200
Pittsburgh, PA 15219
Attn: Bethany E. Davidson
Tel: (412) 391-6732 ext. 201
Fax: (412) 391-6737
(not necessary)
Allegheny County Department of Economic Development
425 Sixth Avenue, Suite 800
Pittsburgh, PA 15219
Attn: Cassandra Collinge
Tel: (412) 350-1000
Fax: (412) 642-2217
Please note that the Dept. of Finance will NOT accept electronic applications. When
submitting an application to the Finance Dept. via fax, please limit the number of pages
sent to the Project Feasibility application only. Complete applications with attachments,
photos and supporting documents should be sent to both the URA and PCRG.
Once applications are reviewed and approved by the aforementioned authorities,
properties are certified for inclusion into the City Treasurer’s Sale. The URA sends
notification to the City approving the application and a selection letter is mailed notifying
CDCs that the property has been selected for inclusion in the Treasurers Sale
(Attachment E). CDCs can also check on the status of their property through the
Property Reserve Reports provided at the monthly VPWG meetings. Any questions or
concerns regarding a property’s inclusion in the sale should be directed to the VPWG
program manager.
Once a property is selected for inclusion into the Treasurer’s Sale, certified notices are
mailed to the owner of record and notices of inclusion in the Treasurer’s Sale are
advertised twice in the Pittsburgh Post Gazette, the Legal Journal, and posted twice on
the property itself. All costs of advertising are added to the final cost of the property.
During this notification phase, property owners are able to enter into a payment plan to
repay delinquent taxes. If the owner of record does not enter into a payment plan or
pay the taxes due in full, the property is included in the Treasurer’s Sale.
III.
Treasurer’s Sale and Redemption Period
Approximately one week after the Treasurer’s Sale, a list of properties available will be
sent to PCRG. This information is typically distributed at the monthly VPWG meeting. If
requests or questions arise about specific properties, contact the Program Manager.
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Following the Treasurer’s Sale date, each property is subject to a 90-day redemption
period. This period provides the owner of record one final opportunity to redeem the
property by paying off any outstanding taxes against the property. If the owner of
record does not take this opportunity to redeem the property, then the City has the right
to take a treasurer’s deed for the property. During the redemption period, owners are
no longer allowed to enter into a payment plan, but do have 90 days to pay delinquent
taxes in full.
After the redemption period expires, the City will provide a list of properties that were
not redeemed to PCRG. Property disposition reports are supplied at each monthly
meeting of the Vacant Property Working Group. Reports inform property submitters of
the Treasurer’s Sale outcomes and the position of their properties in the relevant sales.
Property submitters are expected to keep up to date with each property that they
submit.
IV.
Deposit and Promissory Note
At the point of acquisition, the City places the property in the Land Reserve in the name
of the acquiring party. Properties can remain in the Reserve for up to two (2) years for
structures and five (5) years for vacant lots. This period allows CDCs time to acquire
other parcels and create large-scale projects, while sheltering the properties from
additional holding costs (i.e. taxes, insurance).
It is at this time that development groups placing properties into the reserve are to place
deposit ($200) and sign a promissory agreement on their purchase of the property in
question from the City (Attachment F). As outlined in the MOU agreement, the
negotiated purchase price for a vacant lot is $600 plus cost ($200 deposit plus $400
promissory) and for a structure is $1,000 plus cost ($200 deposit plus $800 promissory).
Deposits and notes must be submitted to the real estate department by the deadline
defined on the treasurer’s sale schedule.
After a CDC submits a deposit and a promissory note, a Proposal to Purchase contract
is generated by the city (Attachment G). This Proposal must be signed by the CDC and
returned to the City before quiet title proceedings can be initiated. Once a Proposal to
Purchase has been received, properties are transferred to the Reserve and the City
begins the process of clearing encumbrances against the property to provide a free and
clear title to the purchasing party. The sales agreement is contingent upon approval by
the City Finance Department.
While in the Reserve, the City of Pittsburgh may perform routine maintenance on
properties. The City of Pittsburgh reserves the right to make any and all improvements
necessary to fulfill its responsibility as Three Taxing Bodies Trustee and to safeguard
the public’s welfare. CDCs placing properties in the reserve are responsible for
reimbursing the City for maintenance costs. A schedule of maintenance fees charged
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by the City is included in the MOU agreement in Attachment A. A CDC may enter into a
license agreement with the City to provide maintenance services and/or make
improvements on any properties included in the Reserve.
VI.
Clearing Title
As discussed earlier, the Second Class City Treasurer’s Sale is not a foreclosure
procedure, and therefore does not quiet title or satisfy non-municipal claims on a
property. Once the City of Pittsburgh takes the treasurer’s deed to a property, they can
initiate quiet title proceedings. All costs incurred by the City for clearing title will be
reimbursed when the CDC purchases the property.
The city files a petition with the court to quiet title to a property. The court then notifies
all interested parties, including all lienholders. If there are no objections to the petition
by any interested party, quiet title is granted. If the quiet title action is answered, the
petition is NOT granted on the properties. In the case the petition is answered, it is the
potential buyer’s responsibility to research what is blocking the quiet title and to take
appropriate actions to satisfy objecting lienholders.
The most common objection to a quiet title petition is from Capital Asset Research
Corporation (CARC). If a property has CARC liens on it, the CDC will need to contact
CARC representatives to request specific account information on the property and the
amount of liens. An example of a CARC account statement is provided in Attachment
H. Some CDCs have been successful in negotiating with lien holders independently on
an agreement to satisfy outstanding liens and remove the answer of record (Attachment
I).
VII.
Lien Buybacks
The most common procedure utilized in the land reserve process if the buyback of liens
from CARC. As part of the sale and servicing agreement between the Three Taxing
Bodies and CARC, the City has the ability to buyback liens sold to CARC for the
purchase price plus interest. When the lien portfolio was sold and the land reserve
established, an amount of $1 million was set aside for the repurchase of these liens for
community development projects.
Recent negotiations with CARC have reinstated a buyback system that was not
functioning due to disputes over payment between CARC and PWSA. The system is
again operating, but the amount of buyback funds is nearly depleted and will likely be
gone by the end of 2006.
VIII.
Settlement
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Once the City Law Department is able to provide a free and clear title, purchasing
parties must be able to set closing dates with the City Finance Department to enable the
transfer of properties from the City to the new owner. It is the CDC’s responsibility to
set a closing date for the property. When a closing is ready, the City Finance
Department will generate a settlement sheet that shows the following information
(Attachment J):
Final amount
Purchase price
Deposit
Costs/Fees
IX.
Default Provisions
Properties may remain in the land reserve for up to two (2) years for structures and five
(5) years for vacant lots. If a property must remain in the Reserve past the designated
time, the CDC should make a formal request to the City to request additional time
allotted in the Reserve. Requests should be made for properties that have quiet title as
well as properties that have not yet received quiet title. PCRG staff will assist in
notifying CDCs of when properties are due out of the Reserve, but it is the responsibility
of the CDC to maintain communication with both PCRG and the City on the status of
properties in the reserve and particularly properties approaching the due out date.
In the event that a CDC has not initiated the process of acquiring title to a property
within the designated time, the City may remove the property from the Reserve and
place it into the general inventory for sale to the public after giving a written thirty-day
notification warning of default. If a CDC is found to be in default, they may be prohibited
from utilizing the Land Reserve for a period of two years at the discretion of the City.
OTHER PROPERTY ACQUISITION ISSUES
While the treasurer’s sale and property reserve system has been successful in recycling
over 130 properties, the system is constantly being reviewed to identify means of
increasing efficiency and effectiveness for all parties. Additionally, there are cases
where the current reserve system does not allow for the acquisition of properties. As
CDCs increasingly face these obstacles, the VPWG needs to examine how we can alter
the system to accommodate for more inclusive land recycling. A few common
acquisition issues are outlined below.
Inclusion of City Owned Property in the Reserve
The City has established criteria for the inclusion of property already owned by the
Three Taxing Bodies into the land reserve (Attachment K). Typically, if a CDC follows
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the appropriate application process and received approval from the URA, the City will
allow the inclusion of city owned property into the land reserve. However, as buyback
funds decrease and as the private market in some neighborhoods grows, the City may
be less likely to expend the administrative costs of including a property already in the
City’s portfolio into a reserve, guaranteeing it cannot be sold privately. Additionally, a
CDC should always attempt to purchase a property directly from the City when possible
and circumvent the reserve process, particularly for properties to be sold to private
buyers or developers.
Inclusion of Occupied Property in the Reserve
Technically, there is no formal policy prohibiting the inclusion of occupied properties in
the Land Reserve. However, during the application review the URA will generally reject
the inclusion of an occupied property into the land reserve due to the potential impact of
relocation costs. As discussed earlier, the MOU treats properties approved for the land
reserve as properties being transferred to the URA. If any URA funds are to be used in
the development of these properties, this would trigger a federal law requiring the URA
to pay relocation costs associated with the displacement of any resident or tenants on a
property. The Vacant Property Working Group (VPWG) contends that there are
instances where the inclusion of an occupied unit into a treasurer’s sale is both justified
and necessary.
Representatives of the VPWG have met with City officials and
continue to discuss the creation of a policy calling for the inclusion of occupied units in
the Land Reserve on a case-by-case basis.
The Property Reserve and For-Profit Developers
The intent of the land reserve is a tool for non-profit developers to acquire and
assemble land affordably for community development projects.
Increasingly,
community organizations are partnering with for-profit developers in neighborhood deals
and this highlights a concern over the use of the land reserve for transferring or ‘flipping’
properties to private developers. As part of the original reserve legislation, a CDC is
required to split any net profit with the City if they sell a property acquired through the
reserve to a private entity.
While selling a property to a private developer or buyer is a means of generating future
taxes, there are two general concerns voiced by Three Taxing Bodies. The first
concern is that if there is private interest and a market for these properties, then the
developer should be purchasing them directly from the City. Secondly, there is a
concern that CDCs request properties with the intent of selling them or partnering with a
private developer, but if the deal doesn’t materialize, the City is stuck owning another
property in their portfolio. A general rule of thumb is to clearly identify any partnerships
with developers in your project feasibility application. The URA will be more inclined to
approve an application if there is concrete evidence of funding commitments and a
developer partnership rather than vague plans of selling property to an interested buyer.
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ATTACHMENT A
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ATTACHMENT B
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ATTACHMENT C
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ATTACHMENT D
CITY OF PITTSBURGH
DEPARTMENT OF FINANCE
PROJECT FEASIBILTY APPLICATION
Date of Application:
Date of Treasurer’s Sale:
Property Address(es):
Lot & Block(s):
(attach separate sheet if necessary)
Organization Information
1. Contact Name:
2. Organization Name:
Please provide your organization’s contact information (Address, Phone, Fax, and
Email)
Address:
Phone:
Fax:
3. Is your organization a 501(C)3?
Email:
 Yes
 No
If yes, please provide the federal and state ID_________________
4. Is the organization current on all City and County real estate taxes?
 N/A
 Yes
 No
5. Can the applicant provide an audit report supporting the organization’s financial
standing?
(Do not include with this application, only upon request)
 Yes
 No
6. Does your organization have a formal neighborhood development plan?
 No
(Do not submit plans with this application, only upon request)
 Yes
25
If yes, has this plan been presented to City Planning?
 Yes
 No
For City/URA Use Only:
URA Approval
__ __ __ __ __ __
T/S Date
__ __ __ __ __ __
7. How many residential and commercial development projects has your organization managed
over the
past five years?
Has construction been completed on these projects?
 Yes
 No
8. What is the role of the community organization in this project?
 Developer
 Co-Developer
 Other _______________________
9. Will a for-profit developer be utilized for part/all of this project?
10.
 Yes
 No
If a for-profit developer will be utilized, please provide the following information:
Developer Name:
____________________________________________________
Developer Contact Information:
_________________________________________
Sample list of current and/or completed projects:
No
Is the developer current on all City and County real estate taxes?
 N/A
 Yes

Please describe the level of commitment between developer and community
organization
(If a written agreement is available, please include with application):
26
Property Information
1.
Please indicate property address, lot & block number, ward and if the property is
already
owned by the City. (provide additional sheet if necessary)
City Owned Address
Lot & Block
Ward





 Residential
 Commercial
2.
Is the property residential or commercial?
3.
Is the property a structure or vacant lot?  Structure
4.
How many units are on the property?
____________________________
5.
Is the property occupied?
 Yes
6.
Describe the condition of the property:
7.
Describe the condition of the adjacent properties:
 Vacant Lot
 No
 Vacant Lot
8.
If the property is a commercial structure, has the CDC done a preliminary title
report?
 Yes
 No
 N/A
27
9.
Are there any liens against this property?
 Yes
 No
If applicable, what are the amounts of GLS and CARC liens against the property?
10.
Has there been any foreclosure activity on this property, as indicated by the
Prothonotary?
 Yes
 No
Project Information
1.
Describe the plan for the property to be developed?
2.
How does this project fit into your overall community strategy?
3.
Is this a future phase of an existing project?
 Yes
 No
If yes, please indicate how many units have already been completed
4.
What is the estimated cost of this project?
5.
Please list all proposed sources of funding for this project including URA funding.
________________________________________
 No
Committed?  Yes
________________________________________
 No
Committed?  Yes
28
6.
________________________________________
 No
Committed?  Yes
________________________________________
 No
Committed?  Yes
________________________________________
 No
Committed?  Yes
What is the estimated timetable for your development plan?
Site control by: ________________________
Financing in place by: ___________________
Construction to begin by: ___________________
Sale/Occupancy by: _____________________
7.
What will be the estimated real estate tax revenue from the property?
(Est. revenue/unit = 3% of unit sales price)
8.
Please provide a photo(s) of the property in question, as well as a map of its
location.
29
ATTACHMENT E
CITY OF PITTSBURGH
DEPARTMENT OF FINANCE
CDC REQUEST TO INCLUDE TAX DELINQUENT PROPERTY IN A
TREASURER’S SALE
WE HEREBY REQUEST THAT THE CITY OF PITTSBURGH INCLUDE THE
FOLLOWING TAX DELINQUENT PROPERTY IN A TREASURER’S SALE:
(please indicate the sale)
____ Year
____ March ____ June
Address:
Lot & Block
____ September
Ward
____ December
Occupied
Vacant
Lot
30
ATTACHMENT F
PROMISSORY NOTE
FROM A NON-PROFIT COMMMUNITY DEVELOPMENT ORANIZATION
In consideration of the Department of Finance’s acceptance and submission to City
Council for approval of a Proposal to Purchase Reserve Property (“Proposal”)
pertaining to a parcel in the _________ Ward of the City of Pittsburgh, County of
Allegheny, Commonwealth of Pennsylvania, with a street address of
_______________________________________ and a Block and Lot designation of
____________________________________ hereby promises to pay to the City of
Pittsburgh the sum of _________________ dollars as a deposit on the purchase
price of the property identified above.
This Promissory Note is made with the understanding that it is subject to and
conditioned upon the approval of the Proposal by both City Council and the Mayor, and
that this Note shall become null and void if said approval is not secured.
In the event that ________________________fails to complete the purchase of
the property by payment of the entire purchase price (as defined in the Proposal) within
thirty (30) days of the date of written notice from the City of Pittsburgh identifying the
balance due and stating that the City is prepared to proceed to closing, this Note shall
become immediately due and payable, without demand or further notice, as liquidated
damages to be applied to the costs of all proceedings and other expenses incurred by
the City of Pittsburgh.
And further, ______________________________ does hereby authorize and
empower any attorney of any Court of Record of Pennsylvania or elsewhere to appear
for and to enter judgment against ________________________, in favor of the City of
Pittsburgh for the above sum with interest, costs of suit and a reasonable attorney’s fee,
and ___________________________________does hereby, with full knowledge and
consent, waive and release all benefit and relief from any and all appraisement, stay or
exemption laws of the Commonwealth of Pennsylvania or any other state now in force
or hereafter enacted.
ATTEST:
NAME OF PURCHASER:
_____________________________
By: __________________________
Title: _________________________
Title: _________________________
Date: _________________________
Date: ________________________
(Seal)
31
ATTACHMENT G
PROPOSAL TO PURCHASE
PROPERTY EXCLUDED FROM TAX LIEN SALE OR LAND RESERVE
WHEREAS, under Act. No. 171 on December 11, 1984, a party may propose to purchase a
property acquired by the City of Pittsburgh under said Act;
WHEREAS, said Proposal to Purchase is subject to approval by City Council, the Mayor of the
City of Pittsburgh, and the Court of Common Pleas of Allegheny County, which includes, in the
case of a vacant lot, the right of others to bid or contest said Proposal to Purchase, in
accordance with the provisions of said Act and the Pittsburgh Code;
WHEREAS, pursuant to Resolution of City Council No. 666, approved September 26, 1996 and
effective September 27, 1996, certain properties within the City of Pittsburgh subject to real
estate tax liens have been excluded from a sale of liens for the purpose of making said
properties available to purchase by persons, organizations or entities with a plan of
development and financing; and
WHEREAS, the party submitting this Proposal to Purchase does not own any properties within
the City of Pittsburgh against which taxes, municipal charges, claims, liens or judgments are
outstanding, and is in full compliance with all City Codes and policies as to all other properties
which the party owns within the City.
WITNESS
THAT________________________________________________________________
____________________________________________________________________________
_________
______________________, hereinafter referred to as “Purchaser,” hereby proposes and
agrees to
pay the sum of $__________________________, to purchase the hereinafter described real
estate, as set forth in Exhibit 1, which is attached hereto and made part hereof.
The purchase price and deposit amounts are as follows, depending upon whether the
subject property is a lot or has a structure thereon:
Purchase Price
Structures
Lots
$1,000 + cost
$100 + cost
Deposit
$200 deposit plus $800 promissory
$200 deposit plus $400 promissory
Costs include: Original Treasurer’s Sale costs, title search acquisition and related expenses,
advertising costs, Prothonotary fees, fees for Sheriff’s service, mailing expenses, closing and
settlement costs, and attorney fees and legal costs, as applicable.
The aforesaid purchase price is to be paid to the Department of Finance in escrow to be
distributed by the closing agent upon final consummation of sale and delivery of a special
warranty deed.
32
The subject property is sold to all existing zoning, building, subdivision laws and
ordinances. The sale of property does not include any commitment by the City to change the
zoning, grant zoning variances, or issue building permits.
Purchase further covenants and agrees that the said party will buy the property subject to the
following covenants and conditions:
SUBJECT to the express covenant to run with the land or a period of fifteen (15) years from the
time of this transfer, binding upon the Grantee(s), (his/her/its/their) heirs, executors,
administrators, successors, and assigns, that no real estate tax exemption will be applied for
or sought for all or part of the described real property and/or improvements, said
improvements as now exist or are later constructed.
SUBJECT to the further express covenant to run with the land for a period of fifteen (15) years
from the date of this transfer by the Grantee(s), (his/her/its/their) heirs, executors,
administrators, successors and assigns, that if a real estate tax exemption is sought for and
obtained for all or any part of the above described real property and/or improvements, said
improvements as now exist or are later constructed, the said Grantee(s), (his/her/its/their) heirs,
executors, administrators, successors, and assigns, during the entire period of said exemption
shall pay a sum of money to each of the Taxing Bodies, that is, CITY OF PITTSBURGH,
COUNTY OF ALLEGHENY AND SCHOOL DISTRICT OF PITTSBURGH, all of the
Commonwealth of Pennsylvania, equal to double the amount of real estate taxes which would
have been levied by each said Taxing Body on all or any part of the above described real
property and/or improvements as now exist or are later constructed, but for said exemption.
Upon failure to pay such amounts to the Taxing Bodies in addition to any other remedies
available, each Taxing Body shall have the same rights, actions and/or remedies provided it for
the collection of real estate taxes levied by the Taxing Body.
The purchaser buys within described property in its “AS IS CONDITION,” subject to any
and all violations, if any, of the Allegheny County Health Department and the City of Pittsburgh
building ordinances.
NOTICE– THIS DOCUMENT MAY NOT (DOES NOT) SELL, CONVEY, TRANSFER OR
INSURE THE TITLE TO COAL AND THE RIGHT OF SUPPORT UNDERNEATH
THE
SURFACE LAND DESCRIBED OR REFERRED TO HEREIN, AND THE
OWNER OR
OWNERS OF SUCH COAL MAY HAVE (HAVE) THE COMPLETE
LEGAL RIGHT TO
REMOVE ALL OF SUCH COAL, AND IN THAT CONNECTION,
DAMAGE MAY RESULT
TO THE SURFACE OF THE LAND AND ANY HOUSE,
BUILDING, OR OTHER
STRUCTURE ON OR IN SUCH LAND. THE INCLUSION OF
THIS NOTICE DOES NOT ENLARGE, RESTRICT OR MODIFY ANY LEGAL RIGHTS OR
ESTATES OTHERWISE
CREATED, TRANSFERRED, EXCPETED OR SERVED BY THIS
INSTRUMENT.
Purchaser hereby agrees to pay all transfer taxes on subject property. It is further agreed that
the closing agent shall place a deed of record in the Recorder’s Office of Allegheny County
immediately upon closing.
THIS PROPOSAL SHALL BE NULL AND VOID UNLESS AN EXTENSION OF TIME IS
GRANTED IN WRITING BY THE FINANCE DEPARTMENT.
33
As per the requirement of Resolution of City Council No. 666, approved September 26,
2996 and effective September 27, 1996, Purchase has submitted a written development and
financing plan for the property. The City will not accept objectors to the sale of properties which
have been excluded from the tax lien sales.
On this, the 96th day following the Treasurer’s Sale of the subject property, the
undersigned herewith tenders a check, money order, promissory note, letter of credit or URA
funding commitment letter in the sum of $________________, as hand money with the
understanding that the Department of Finance (Real Estate Division) of the City of Pittsburgh
will submit the Proposal to Purchase to City Council for action in this matter. In the event that
City Council and the Mayor act favorably in the matter and the same has been approved by the
Court in accordance with the aforementioned Act and in the event that the Purchaser fails to
complete the offer by payment of the balance of purchase price within thirty (30) days from the
date of notification by the City of Pittsburgh, the hand money or promissory note, letter of credit
shall be considered as liquidated damages to be applied to the costs of all proceedings and
expenses occurred and this Proposal shall be null and void.
If requested, the Department of Finance will conduct the closing. If the Purchase fails to close
on the property in the established manner, Purchase will not be permitted to submit a proposal
to purchase on any other properties excluded from a tax lien sale for a period of one (1) year.
THIS PROPOSAL TO PURCHASE shall be binding upon the Purchaser,
(his/her/its/their) heirs, successors, and assigns.
IN WITNESS THEROF, ___________________________________________
_______________________________________________________________________
Have hereunto set ____________________ hand and seal this ______________ day of
________________________, _______________.
WITNESS:
___________________________________
___________________________________
_______________________________
___________________________________
PURCHASER
THIS PROPOSAL meets with the approval of the Director of the Department of Finance and is
hereby approved for proper submission to the City Council and the Mayor of the City of
Pittsburgh.
_______________________________
MANAGER, THREE TAXING
BODIES PROPERTIES
___________________________________
DIRECTOR
34
ATTACHMENT H
35
ATTACHMENT I
POLICY GOVERNING THE INCLUSION OF
EXISTING THREE TAXING BODIES PROPERTY
IN THE PROPERTY RESERVE
The City of Pittsburgh will include certain existing Three Taxing Bodies property in the
Property Reserve under the following conditions:
VACANT LOTS









The property must be approved for sale
There are no interested, approved buyers
The adjacent property owners have been notified that the City owns the property
and have been given thirty (30) days to apply to purchase it
An approved buyer will have thirty (30) days after notification of approval to sign
a proposal to purchase and remit hand money
The CDC has not started a sale on the property
The CDC is approved to purchase
The CDC is in compliance with the requirements of the Reserve on all properties
in the Reserve
A development plan has been submitted and been approved by the URA
The CDC remits the required hand money and promissory note and enters into
the Proposal to Purchase
STRUCTURES
The City of Pittsburgh will not include existing inventory structures in the Property
Reserve unless, after six (6) months of marketing, the City has not started a sale with a
qualified buyer. After six (6) months of unsuccessful marketing, in order to be included
in the reserve the following will apply:







The property must be approved for sale and is not scheduled for demolition
An approved buyer will have (30) days after notification of approval to sign a
proposal to purchase and remit hand money or there are no interested, approved
buyers
The CDC has not started a sale on the property
The CDC is approved to purchase
The CDC is in compliance with the requirements of the Reserve on all properties
in the Reserve
A development plan has been submitted and been approved by the URA
The CDC remits the required hand money and promissory note and enters into
the Proposal to Purchase
36
ATTACHMENT J
Policy and Procedures for Property Flipping
City of Pittsburgh Property Reserve
Background
The City of Pittsburgh Property Reserve is a tool for non-profit Community Development
Corporations (CDC) to acquire and assemble land affordably for community
development projects. These development projects create new housing opportunities,
increase property values, build the tax base and revitalize communities.
The function of the Reserve is to assist CDCs in overcoming barriers to land acquisition.
These barriers are overcome by providing access to the municipal tax foreclosure
system, establishing affordable fixed prices on lots and structures, and allowing CDCs
to acquire and assemble development deals without paying holding costs on land. The
Property Reserve system is a public investment that makes development projects
financially feasible.
While the Reserve is for non-profit CDC use only, VPWG partners recognize that there
is an appropriate role for private developers in the Land Reserve process. In a time of
limited resources, partnerships become increasingly important. Not all CDCs have the
capacity to undertake development projects themselves, and partnerships with private
developers are common. Creating partnerships with private developers can also lead to
additional development that does not require public subsidy. In order to ensure that
public investment in the Land Reserve is yielding public return, the VPWG seeks to
establish a formal policy regarding the flipping of property.
The current agreement in place allows a CDC, in appropriate circumstances, to identify
property for the Land Reserve, buy the property from the City, then resell it to a
developer or third party purchaser without significant improvements. In these cases, the
CDC is to split evenly with the City of Pittsburgh all net profits made from the sale of the
property. This transaction returns property to tax generating uses and provides a return
on public investment to the City.
Definitions
CDC: A chartered, tax exempt, non-profit Community Development Corporation (CDC)
or other eligible community based organization approved by the Finance Department to
purchase City owned property
Property: Any property, vacant land or structure, identified for the Land Reserve. All
eligible properties must be unoccupied and at least 2 years delinquent on City real
estate taxes
37
Project Feasibility Application: The approved application required for all Treasurer’s
Sale and Land Reserve requests. Approval of applications is contingent upon City
Finance and Urban Redevelopment Authority of Pittsburgh (URA) approval
Flipping: The purchase and resale of property, for a profit, without significant physical
improvements. The Department of Housing & Urban Development defines flipping as “a
practice whereby a property that was acquired is quickly resold for a considerable profit
with an artificially inflated value.”1 Though prices may not be inflated in the case of the
Land Reserve, the City Sale price is artificially low, resulting in the same outcome.
Significant Improvements: Rehabilitation or physical improvements to a structure or the
construction of a new structure or use on a vacant lot
Net Profit: Amount of profit earned by a CDC through the sale of a property after
recovering eligible costs incurred through the acquisition of the property
Eligible Costs: Direct costs incurred by a CDC through the acquisition of a property
including title reports, maintenance (if not done by the City), legal fees, documents and
staff time investment
Staff Time Investment: Staff time expended on property identification, due diligence,
site visits, application, correspondence, property stabilization, improvements and other
actions necessary to advance development
Policy
The intent of the Land Reserve is to provide public investment for the acquisition and
assembly of land, making community development projects financially feasible. The
Reserve is not intended to provide revenue for CDC overhead. The VPWG
acknowledges the following policy regarding the flipping of property from the Land
Reserve:
Acquiring property through the Treasurer’s Sale and Land Reserve with the sole
intent of quickly reselling the property for a profit without making significant
physical improvements is prohibited.
If a CDC is unable to complete the plan originally approved in a Project Feasibility
Application, the CDC must give the URA and City Real Estate Departments first
right of refusal before selling the property to another party to complete the
project. If neither the City nor URA is interested, then the CDC may sell the
property to a competent buyer to complete the approved plan. In this case, the
CDC must remit to the City exactly half of the net profit made from the sale of the
property.
1
FR-4615 “Prohibition of Property Flipping in HUD's Single Family Mortgage Insurance Programs.” May 1, 2003
38
If a CDC is acquiring property on behalf of another developer/purchaser through
a partnership, then the Project Feasibility Application must specify the CDC’s role
and responsibilities in the partnership, the developer’s name and contact
information, a detailed project description and proof of the partnership/agreement
in place.
Procedure
1) When requesting property for the Treasurer’s Sale, a CDC must clearly state in
the Project Feasibility Application their role as a developer, co-developer or
other. If the CDC is to be a co-developer or ‘other’, the roles and responsibilities
of the CDC in the project must be defined.
2) The project description must clearly outline a plan and timeline for acquiring the
property and reselling to the developer.
3) To be approved, the Project Feasibility Application must include the developer’s
name and contact information along with proof of partnership (eg. letter of intent,
memorandum of understanding, etc.)
4) When submitting a Proposal to Purchase, the CDC must sign a Statement of
Acknowledgement, stating the CDC has read and understands the policy,
provisions and penalties of the Land Reserve and agrees to remit to the City fifty
(50) percent of net profit made from the resale (flipping) of the property.
Penalties
Council Bill Number 402 of 1998, establishing the City of Pittsburgh Land Reserve,
defines penalties for violating Land Reserve provisions. A CDC found in violation of
Reserve provisions will be prohibited from utilizing the Reserve for a period of one (1)
year from the time it is determined by the Department of Finance that default has
occurred. At the expiration of one year, the CDC must compensate the City for funds
not paid and demonstrate to the URA the CDC’s ability to undertake additional
development activities in order to utilize the Reserve process.
PCRG, URA and City Finance will work collaboratively to ensure this policy is being
implemented and enforced.
I have read and understand the above policy, provisions and penalties associated with
flipping property held in the City of Pittsburgh Land Reserve.
Signatures
39
Organization: _____________________________________________
Signature: _______________________________________________
Name: ______________________________
Title:_______________________________
(please print)
(please print)
40
ATTACHMENT K
Revised Procedures
City of Pittsburgh Land Reserve Applications
Project Feasibility applications must be submitted to the following contacts:
___________________________________________________________________________
Urban Redevelopment Authority of Pittsburgh
Submit complete application with all necessary attachments, photos and supporting
documents. Electronic or Hard copy
Urban Redevelopment Authority
200 Ross Street
Tel: (412) 255-6672
Pittsburgh, PA 15219-2069
Fax: (412) 255-6645
Attn: Jerome Frank
Email: jfrank@ura.org
____________________________________________________________________
City of Pittsburgh Department of Finance
Submit only the Project Feasibility Application (no additional documents necessary)
Hard copy only
200 City-County Building
414 Grant Street
Pittsburgh, PA 15219-2476
Attn: Mary Lou Tenenbaum
Tel: (412) 255-2468
Fax: (412) 255-2438
______________________________________________________________________
Pittsburgh Community Reinvestment Group
Submit complete application with all necessary attachments, photos and supporting
documents. Email or Hard Copy. Email preferred.
PCRG
1901 Centre Ave Suite 200
Pittsburgh, PA 15219
Attn: Bethany E. Davidson
Tel: (412) 391-6732 ext. 201
Fax: (412) 391-6737
Email: bdavidson@pcrg.org
______________________________________________________________________
Notes to remember for submitting applications:
 Mailing complete applications one week prior to the deadline is the best
procedure
 The Finance Dept. will NOT accept electronic applications
 When submitting via fax, do not include attachments
 CDC’s no longer have to send an application copy to Allegheny County
Department of Economic Development
41
ATTACHMENT L
POLICY & PROCEDURES FOR
REQUESTING AN EXTENSION OF TIME IN RESERVE
Community development groups must adhere to certain guidelines as outlined in the original Land Reserve
Legislation. When requesting extension of time in the City of Pittsburgh Property Reserve, the powers and
responsibilities of decision-making are given to the City of Pittsburgh Finance Director. Once a parcel has clear
title and has reached its time limit in the land reserve and, upon notification from the City Real Estate
Department that the parcel is due out to be closed, sponsoring groups must, within thirty (30) days,
communicate their extension request to the City Real Estate Department. 2
Groups are required to submit an update to the original project feasibility application to VPWG3 staff, City Real
Estate and the URA, the purpose of which is to identify the changes from the original approved plan. This
update must provide:
1) The reason for the delay (for example, the use/reuse plan has changed due to changing
market conditions, or an original end-buyer was pre-identified but backed out, or the funding
source has changed or backed out, or the group is still waiting to secure other parcels/sites to
begin the project, etc.);
2) A remedy for the delay (for example, a new use or a new end buyer or new funding sources
or the search for funding, etc.);
3) A revised and detailed timeline of the project (the extension cannot exceed 2 years); and
4) If applicable, the implications for the City’s anticipated tax revenue.
The URA will review and make a recommendation to the City of Pittsburgh Finance Director on the updates
application.
The Department of Finance will review the request and make the final decision on extension (or not). Factors
they will consider, include (but are not limited to): whether property is creating a liability for the city; whether the
structure is deteriorating; whether the parcel is an overgrown vacant lot and a nuisance for the neighborhood;
whether there is dumping on the property, abandoned cars, etc.; and/or whether other hazardous conditions
exist.
Should the request for extension be granted, if any of the above conditions (or other factors) exist, they will add
to the closing costs, and groups are expected to plan accordingly.
Other considerations may also impact the decision to grant an extension. For example, is it new construction or
a structure with plans for rehabilitation? Such properties would be expected to close more quickly. What is the
likelihood the group will receive funding for the project?
Community development groups should be mindful of the additional responsibilities and costs which accrue
after an extension is granted. If the property is deteriorating, the community group may either obtain a license
agreement and assume the cost of securing the property during the period of extension, or they may let the
City continue to secure the property, with the understanding that those expenses become part of the closing
cost for which the group is responsible. Further, if the property is a structure, should the building require
demolition for any reason, the cost of demolition will be added to the closing cost.
Once an extension is granted, the due out date will automatically be adjusted to reflect the extension on the
Land Reserve Report, to which the group is now bound to adhere.
If a group does not follow these guidelines and respond to the City of Pittsburgh Real Estate Department in a
timely, complete and accurate manner in accordance with the above, it will NOT be granted an extension and
will be required to close on the parcel within thirty (30) days or face the penalty of default as outlined in the
original Land Reserve legislation.
2
A parcel entered into the reserve as a structure but which is demolished, will automatically be extended from
the 2-year structure to the 5-year lot schedule. However, the costs at closing will reflect the parcel's original
status as a structure.
3
As the number of properties in the reserve nears the cap of 300, PCRG /VPWG is also responsible for
reviewing extension requests more closely as it is their member organizations will suffer if too many parcels
with extensions fill up the reserve
42
43