Overview. Building Maintenance Codes: Catalysts for Revitalization

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1 Building Maintenance Codes: Catalysts for Revitalization Tyler Mulligan Associate Professor of Public Law & Government NC Main Street Conference Morganton March 19, 2015 Overview Why code enforcement? Statutory options Evaluate standards using NC examples DFI and financing revitalization (time permitting) SOG neutrality Please ask questions at any time 1

2 Why Code Enforcement for Commercial Buildings? Structural safety Appearance Tax value Revitalization Thinking like a private developer: Aggregation & Land Bank Model 2

3 Local Govt as Land Bank Code enforcement Acquire properties Hold, stabilize, and prepare properties Convey properties to a redeveloper Offer financing (loans or grants) for first movers who take the most risk if necessary Conceptual Framework for Maintenance Codes 3

4 NC Constitution: Local govts derive all authority from State The Statutes 4

5 Green Condition Good condition but vacant (no active business operations) Green Condition: Example of Registration Program In NC: Vacant Commercial Property Registration Ordinance Boarded Dwellings Ordinance 1. Owner s name and address 2. Owner s telephone number 3. Name and address of agent/ maintenance company 4. Owner s plan for regular maintenance 5

6 Yellow Condition Obvious signs of vacancy or visible but not serious maintenance deficiencies Yellow Condition: Example of No Evidence of Vacancy Ordin. In NC: Vacant Commercial Property Registration Ordinance 1. Vacant means Property not legally occupied for 30 days. 2. Evidence of Vacancy [causes] a reasonable person to believe that the Property is vacant. 6

7 Evidence of Vacancy? #1 A overgrown or dead vegetation, trash C porches & steps in poor condition B extensive chipped or peeling paint D absence of furnishings or items consistent with commercial habitation Evidence of Vacancy? #2 A exterior walls in poor condition C general disrepair B broken windows D absence of window coverings such as curtains and blinds 7

8 Detrimental to the health, safety and welfare? Does public benefit outweigh private harm? A absence of window coverings such as curtains and blinds B Interiors, when visible to passersby through storefront windows, shall be maintained in a way that does not exhibit Evidence of Vacancy How adjust the balance of public benefit and private harm? Visible rotting shall be corrected with the exterior painted and in good aesthetic condition 8

9 Red Condition: When repair is still an option Repair cost <50% value & dangerous and injurious (160A-439) OR Repair cost reasonable & building is abandoned & hazard (160A-441) dangerous and injurious or hazard? #1 A Buildings [with] cracked or broken glass, loose shingles [or] wood, crumbling stone or brick, loose or broken plastic B Windows containing broken or cracked glass that could be in danger of falling or shattering. 9

10 dangerous and injurious or hazard? #2 A All exterior [painted] surfaces maintained generally free of peeling and flaking. Where [50%] or more peeling or worn away, the entire surface shall be repainted [to prevent deterioration]. B Exterior surfaces shall be maintained to prevent deterioration dangerous and injurious or hazard? #3 A If temporarily closed by boarding to secure the building boarding shall be trim fit and painted to properly conform with the other exterior ports. B If an opening is closed by boarding the structure shall be maintained in a state that secures the structure from any unauth. admittance from humans, animals, or birds. 10

11 Special assessment (tax lien) foreclosure clears title Winning bidder takes property free and clear of all claims, rights, interests, and liens except certain tax liens. (G.S & ) See McLaughlin blog post in materials for more details on tax lien foreclosures. Black & Blue: Prevent Demolition by Neglect 11

12 Demolition by Neglect? A Deterioration of fences & accessory structures C Deterioration of walls or vertical support, floor supports, roof, that cause leaning or sagging B Ineffective waterproof of exterior walls, roofs, and foundations D Deterioration that has a detrimental effect on surrounding historic district character of landmarks Black & Blue: Eminent Domain Designated landmarks for which an application has been made for a certificate of appropriateness for demolition G.S. 40A-3(b)(8) 12

13 Role of maintenance codes in revitalization? Maintenance Codes and Main Street Revitalization First-mover challenge Fragmented ownership Limitations of oneoff investments Local govts can play role as aggregators and promote coordinated investment 13

14 DFI: How Finance Revitalization? Resources 14

15 Questions and Comments Tyler Mulligan UNC School of Government CB #3330, Knapp-Sanders Bldg. Chapel Hill, NC