HOUSING

Strategy 2:

Revitalize established neighborhoods and rehabilitate existing housing stock.

About The Objectives

Renovating existing housing stock and building new homes on vacant lots can be a cost-effective way to increase quality housing options in a community. One way to accomplish this is through promoting and incentivizing infill on vacant lots and rehabilitation of outdated or unkept housing stock. Residential infill refers to the construction of new homes on vacant lots in existing neighborhoods. Occasionally these lots were never built on, but more frequently they result from the demolition of a damaged or poorly maintained structure. Infill and rehabilitation present opportunities to improve the fabric of existing neighborhoods, utilize existing infrastructure systems, and increase the municipal tax base all while creating housing units for new residents.

Unfortunately, major home renovations and new construction do not make economic sense in struggling neighborhoods. A $100,000 home renovation may only add $70,000 in value to the home if home values are low across the remainder of the neighborhood. For this reason, incentives may be needed to overcome these financial constraints.

Additionally, county, city, and town leaders can help to overcome these barriers by targeting municipal infrastructure investments and additional code enforcement efforts to the neighborhoods or blocks showing the greatest potential for private investment.

Regional Land Bank

Land banks may be established as either a public agencies or non-profit organizations. Their purpose is to acquire, hold, sell, and sometimes redevelop property to return vacant and underutilized properties back to productive use. They frequently have more specific goals related to increasing affordable housing or stabilizing property values in the surrounding neighborhood.

A land bank would support a number of regional housing goals, including providing a mechanism for assembling tax-delinquent or abandoned parcels for the purpose of redevelopment, acquiring and holding strategically important properties until they could be developed for affordable housing or other products not being delivered by the market, and acquiring properties to convert to other uses such as mixed-use, parks, or open space. In addition to acquiring and holding land, the land bank could lease or sell properties.

Target Infrastructure Investments

Older neighborhoods are often served by aging infrastructure in need of repair or replacement. These infrastructure deficiencies can detract from neighborhood character and prevent private investment. Municipalities should strategically direct infrastructure investments to targeted areas to exhibit a commitment to these neighborhoods in hopes of attracting additional landowner and developer investment. The focus should be to identify key opportunities in targeted housing investment areas, where the municipality could then replace sidewalks and curbs as needed, resurface the road, and repair alleys if present. Other infrastructure deficiencies, such as outdated sewer and water lines, could also be addressed. Once the infrastructure work is completed and the new curbs and sidewalks installed, the installation of street trees could be used to help beautify the blocks.

Rehabilitation Grants

A home rehabilitation grant or low-interest loan program, similar to a commercial façade improvement program but available to owner-occupied housing, is a beneficial tool in neighborhood revitalization. The Indiana Housing & Community Development Authority (IHCDA) has an owner-occupied rehabilitation program funded with Community Development Block Grant (CDBG) funds. IHCDA does not fund owners directly; the grants of up to $25,000 per home must be administered through the local government or a not-for-profit organization. Orange County already has such a program funded by IHCDA. The IND15RPC region should work with other member counties, cities, and towns to establish similar programs.

Rental Registration Program

As homes fall into disrepair there may be health code or nuisance violations on the property. This is especially true for rental properties with out-of-town landlords. A solution to encourage maintenance and enforcement is a Rental Registration Program. These programs require that all landlords register their property with the appropriate jurisdiction (county, city, town), along with additional contact information, and proof of property inspection. They also frequently require up-to-date contact information for any tenant(s) living on the property. Each municipality may determine specific program requirements, such as if the program should cover all rental properties including singlefamily houses, multifamily houses, townhomes, apartment units, etc. Program specifics vary, but registration typically lasts for a couple of years. Additionally, the municipality may establish parameters regarding the inspection. For instance, does it happen every two years to all properties, only when properties register for the first time, or only after a code violation or neighbor complaint? Code enforcement should then be easier based on having landlord, tenant, and inspection information at all times.

Objective Priority Actions

1. Create a project committee with representatives from each IND15RPC county and other interested municipalities in the region.

A. Establish a regional land bank to acquire blighted properties and structures, prepare them for sale, hold if necessary, and then sell them so that they may return to attractive and tax positive assets in the community.

2. Explore land bank program options as either a public agency or a non-profit organization.

3. Determine program functions, such as acquiring and holding properties, demolishing structures, rehabilitating structures for resale, selling or transferring properties, and leasing or renting properties.

4. Finalize land bank structure and organization.

5. Help support initial operating costs of the land bank until it becomes self-sustaining.

B. Target public infrastructure investments (streets, sidewalks, streetscape, lighting, utilities) in priority development areas to leverage additional private sector housing investment.

1. Identify residential blocks that have the greatest potential to realize market-driven redevelopment given minimal municipal investments.

2. Coordinate needed improvements with local capital improvement plans.

3. Pursue grant opportunities to leverage limited local resources and fund improvements as resources are available.

4. Work outwards from investment areas to capitalize on past successes.