Land Bank executive speaks to group

Doug Weiland, Genesee County Land Bank executive director, said his organization spent $21 million in the community since 2009 and plans to spend another $13 million of the federal Neighborhood Stabilization Program 2 (NSP2) grant funding before its completion in February 2013.

"We are stabilizing the city by removing blight through demolitions and rehabilitating homes. We're also putting people to work," Weiland told the Eastside Business Association Jan. 25.

According to Weiland, the land bank is responsible for over 1,150 demolitions in the city — many on the East Side. The land bank has also created 485 jobs.

"That's a pretty significant financial impact," Weiland added.

The city is seeking an additional $6.9 million to continue rehabilitating and demolitions as it works with the land bank to restore parcels of properties that have been foreclosed.

Weiland says that rehabilitations become cost-effective when the worst house on the block becomes the best house on the block raising the property values of all the homes in the area.

The cost of the average remodel ranges from $70,000 to $80,000 to bring the house back to code. With government subsidies potential homeowners can purchase these homes for a fraction of the cost if they agree to live in them for a determined amount of time and meet the federal income guidelines and have approved credit.

Real estate values of homes in the Flint have plummeted. In 2005, the average home value was $59,900. But in 2009, the value dropped to $15,000. The foreclosure rate in 2009 was 70 percent, Weiland said.

Statistics show half the properties in Flint are rental units which presents another challenge for the city with out-of-state landlords who neglect the properties.

Weiland said his organization lost about $1.3 million in funding this year when the county forced his agency to cut maintenance on their properties until more funding can be found.

"It took us 12 weeks to cut the grass of abandoned homes in Flint last year. We are looking at some free labor from Mott College, Career Alliance and the sheriff's department for this year to offset the funding loss," Weiland continued.

The land bank was also responsible for trash pick up in and around the abandoned houses.

"Two years ago we picked up more than 1,500 tons of trash," he said. "Studies show there is a direct relationship between blight and crime."

Tax foreclosures are another problem looming before the land bank. According to Weiland, from 2010 to 2011 there were 5,000 tax foreclosures in the city.

"We're beginning to see foreclosures in areas like Mott Park, Potter Longway and the West Side," Weiland said.

Today the land bank owns about 7,000 parcels — 12 percent of properties in the city. With 33 percent of all properties abandoned the land bank could wind up owning about a third of the city, Weiland said.

Member Mike Herriman asked Weiland if anything is being done to stop speculators from purchasing abandoned properties to rent.

Weiland said rules are in effect that prohibit distressed property sales to people who own other properties with delinquent taxes or live outside the county without going through an approval process.

The Rev. Tommy McDoniel, Asbury Methodist Church, asked what churches can do to help restore abandoned properties. He said the Asbury Community Development Corporation is looking for a housing project in the area.

Weiland promised McDoniel a map of properties within a mile radius of the church indicating which homes were available.

Members asked if there are vacant lots available for community gardens.

Weiland said the land bank offers an Adopt-a-Lot Program for organizations that want to develop urban gardens.

Visit www.thelandbank.org for more information.