DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT PROPERTY ACQUISITISION AND DISPOSITION DIVISION FY 2009 QUARTERLY REPORTS Headin2nd Quarter g Cover photo: Auctioned Property at 100 Bryant Street, N.W. Photos taken by Stanley Fields, Construction Analyst, PADD - i - Page 2 Department of Housing and Community Development Property Acquisition and Disposition Division (PADD) Revitalizing Communities One Home at a Time The Department of Housing and Community Development (DHCD) established the Property Acquisition and Disposition Division (PADD) in Fiscal Year 2008 to (1) decrease the number of vacant and abandoned residential properties in the District, and (2) transform vacant and/or abandoned deteriorated properties into homeownership opportunities for District of Columbia residents at all income levels. Through PADD, DHCD encourages property owners, when possible, to rehabilitate and/or occupy their vacant and abandoned residential property. When owners are unwilling or unable to maintain their properties, DHCD acquires such properties through four methods: negotiated friendly sale, eminent domain, donation, or tax sale foreclosure. DHCD then disposes of properties by selling the properties to individuals or developers to be rehabilitated into high quality affordable and market-rate single family and/or multifamily for-sale housing in District neighborhoods. ■ ■ ■ DHCD is located at the corner of Martin Luther King, Jr. Avenue, SE and Good Hope Road, SE - PagePage 3ii - Table of Contents DHCD........................................................................................Page ii Property Acquisition & Disposition Division ........................ Page 2 Executive Summary ...........................................................2 Legislative Requirements/Authority.................................2 Target Areas .......................................................................3 Program Accomplishments..............................................4 Acquisitions................................................................ 4 Dispositions.................................................................4 FY 09 Second Quarter Synopsis........................................5 Statutory Reporting Requirements.........................5 Exhibit A—Property Acquisitions & Dispositions By Ward ................................................................ 10-17 Exhibit B—Pre-Qualified Developers List................18 Homestead Housing Preservation Program....................... Page 6 Executive Summary ...........................................................6 Legislative Requirements/Authority.................................6 Summary Status ..................................................................6 Program Accomplishments..............................................7 Acquisitions................................................................7 Dispositions.................................................................7 Exhibit C— Homestead Housing Preservation Program Acquisitions and Dispositions.......................19-20 Page 1 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT Property Acquisition & Disposition Division Executive Summary Nuisance Properties Omnibus Amendment Act of 2000 (D.C. Official Code §§ 42-3171.01 though 42-3171.04, During the second quarter, PADD held as added by Section 102 of the th an auction at 441 4 Street, NW on Due Process Demolition Act of 2002, January 30, 2009 in the Old Council effective April 19, 2002, DC Law 14-114 Chambers for 28 properties. Over 100 (the “Housing Act of 2002”); people participated as registered bidders. The closings are projected to occur prior ■ Section 2 through 10 of the to May 1, 2009. Vacant and Abandoned Properties Community Development and Additionally, PADD sold 2 properties: 1320 Disapproval of Disposition of Certain Trinidad Avenue, NE to Mi Casa Inc. and Scattered Vacant and Abandoned 1108 Good Hope Road, SE to Sigma Invest- Properties Act of 2002, as amended, ments, LLC (the adjacent property owner). effective April 2, 2003 (D.C. Law 14-267; Construction and stabilization for both of D.C. Official Code §§ 10-831 through these properties started shortly after the 10-839; sale. PADD executed the Property Disposition ■ Sections 47-1353(a)(2) and 47-1353(c) Agreements for the first phase of develop- (1) of D.C. Official Code as enacted ment in Ivy City with Mi Casa, Inc., as well by the Tax Clarity Act as Manna, Inc. in February and March of 2000, as amended, 2009, respectively. effective June 9, 2001 (D.C. Law 13-305); and Legislative Requirements / Authority ■ Section 47-847 of D.C. Official Code PADD acquires and disposes of as enacted by the residential and commercial properties Homestead Housing for the purpose of revitalizing District Preservation Act of neighborhoods, as well as creating 1986, as amended, public benefits and affordable housing effective August 9, opportunities. This division operates 1986 (D.C. Law 6-135 under several different statutes to acquire (2006 Repl.). and dispose of vacant and abandoned property. The following statutes are listed according to Mayor’s Order 2007-209, dated September 27, 2007: ■ Sections 431 through 434 of the Abatement and Condemnation of Auctioned property: 57 Bryant St., NW Page 2 The functions in PADD include, but are not development limited to the: process; and ¾ Determination of a property being ¾ Rehabilitation of vacant build- vacant and abandoned and/or ings and the deteriorated; construction of ¾ Acquisition and redevelopment new buildings of abandoned and deteriorated on vacant lots property through friendly sale, through an eminent domain, donation, or IDIQ contract, assignment; whereby the District hires fee Auctioned property: 646 I St., NE ¾ Acquisition of tax delinquent developers and properties through the right of contractors to redemption associated with a build scattered site affordable certificate of sale issued as a housing. Upon completion of these result of a tax sale; Turnkey units, PADD will offer them for sale to income eligible house- ¾ Disposition of abandoned or holds through a lottery process. deteriorated property to adjacent property owners, or through a Target Areas competitive process or a negoti- Since its establishment, PADD has ated sale; focused its efforts in neighborhoods ¾ Disposition of property to pre- with high concentrations of vacant qualified developers in bundles and abandoned residential properties. of 5-25 properties; PADD works with other District agencies, including the Department of Consumer ¾ Disposition requirement that 30% and Regulatory Affairs, the Mayor’s Office of the units developed in each of Community Relations and Services, disposition bundle be affordable Advisory Neighborhood Commissions, at 60% AMI; civic associations and residents to identify vacant and abandoned properties. ¾ Deposit program income gener- ated from the sale of properties Currently, PADD activities are focused into a revolving account, which in the following neighborhoods: is to be used for future property acquisitions and to subsidize ■ Historic Anacostia the development of affordable ■ Bellevue housing; ■ Columbia Heights ■ Congress Heights ¾ Disposition of property through an ■ Deanwood auction for the purposes of having ■ Ivy City/Trinidad properties developed within 18 ■ Washington Highlands months, generating revenue for the continuation of division activities, ■ Rosedale and funding the creation of afford- able housing through the Turnkey Page 3 Program Accomplishments development solicitation, or are awaiting a redevelopment plan. PADD’s Property Inventory List (Exhibit A) F. Properties offered through a Solicitation summarizes the status of the properties held for Offers – in inventory as of 3/31/2009. The categories Represents properties that were below describe PADD’s process of acquir- included in the most recent Solicitation ing and disposing of properties. for Offers. ACQUISITION G. Properties awarded to developers – A. Properties in Litigation – Represents properties that were Includes open eminent domain and tax awarded based on proposals from foreclosure cases where the District is the most recent Solicitation for Offers. seeking to acquire and clear title of vacant and abandoned properties. H. Properties where disposition agreements are being negotiated – B. Properties in Acquisition – Includes properties where disposition Includes open friendly sales where the agreements are being negotiated District is seeking to acquire vacant such as the Ivy City Special Demonstra- properties. tion Project or where the disposition agreement needs to be amended. C. Properties where PADD is completing site assembly – I. Properties sold to developers and under construction – Represents properties where PADD has acquired and is continuing to acquire Represents properties that have adjacent or neighboring properties in been sold and are actively under the Rosedale, Bellevue, and Anacostia construction. target areas. Table 1 D. Properties in recapture due to default - PADD Property Activities, 2nd Quarter FY09 Total Active Properties 195 Encompasses properties that were sold Acquisition 47 to developers or Homestead transfer- Properties in litigation 7 ees who are in default of the Property Properties in acquisition 17 Disposition Agreement, Development Properties where PADD is completing site assembly 21 Properties in recapture due to default 2 Covenants or Abatement Agreements, Disposition 148 where the District is trying to recapture Properties available