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“Removing Blight from Our Neighborhoods”
By : Cesar N. Rodriguez,
Code Enforcement Analyst
City of McAllen, TX
2013 Vacant
Homes Study
116+ Vacant Homes
76 with P.D. Reports
(Last 5 years)
56 with Accumulation of
Trash and Illegal Dumping
52 Listed as Condemned
36 with Delinquent
City Taxes
23 with Vandalism
6 with Fire Damage
EARLY RESEARCH
HEALTH VIOLATIONS
NUMBER OF DEMOLITIONS*
(PRIOR TO PROGRAM)
Year 2009 2010 2011 2012 2013
Houses Demolished 55 31 48 37 52
Demolitions by City 10 1 4 5 7
Recorded Lien Amount $99,132.75 $10,506.69 $34,794.36 $17,085.01 $5,203.95
0
2
4
6
8
10
12
2009 2010 2011 2012 2013
Houses Demolished by City
2009-2013
*Data Provided by City of McAllen’s Building & Inspections Department
Average Cost
per Demolition:
$6,174.92
INVOLUNTARY DEMOLITIONS
Total Demolition Costs with Attorney Fees,
Title Searches, and Administrative Costs:
$5,000-$10,000 + Time
Delinquent Taxes & Tax Suits-
2 year waiting period if Exemptions
City of Dallas vs. Stewart (2011)
INVOLUNTARY (CONTINUED)City of Dallas vs. Stewart (2011)*
Vacant Home Story: 1991-2002 Suffered
Code Violations During Long Period of Vacancy
Continual Break-ins by Vagrants (Despite Board-up)
(2001) Declared a Nuisance
(2002) Warrant issued for Demolition by City
(2002) Stewart Sues due to failure of Due Process &
Unconstitutional Taking
Stewart (Property Owner) Wins Case
Jury Decided: July 1, 2011
Awarding Owner $75,707.67 For Destruction of House
*http://caselaw.findlaw.com/tx-supreme-court/1573094.html
THE VOLUNTARY OPTION
VOLUNTARY OPTION EXPLAINED
KEY TO PROGRAM: NO INCOME LIMITS
-City pays for Roll-off Containers used for Demolition
or Repair of Substandard, Vacant home:
Property Taxes must be current
Must have Building Permits
Sewer Plugs/Septic Tank Inspections
-Customer is responsible for Labor Costs:
Labor cost may involve Local Contractors
Non-profit Volunteers
Family members
INCENTIVES AFTER PILOT PHASE -First Four customer were
helped through donated
containers by Keep McAllen
Beautiful during Pilot Phase.
-In January 2014, City of
McAllen’s Roll-Off Services
took on servicing of Imagine
Tomorrow Program
Customers. Customer
intake includes signing of
liability waivers and is
handled by Health & Code
Enforcement.
-In June 2014, the City
Commission approved
Economic Incentive
Contracts targeting
Substandard, Vacant homes.
A BLUEPRINT FOR TARGETED
ECONOMIC DEVELOPMENT
Economic *Incentive Contracts Targeting:
1. Substandard-Vacant Single-Family Structures
II. Substandard-Vacant Multi-Family Structures
III. Empty Lots in Areas Losing Population
Note: Owner must (proof of ability) invest more than
$20,000 in Construction Cost to request Incentive
Contract.
*Incentive Contracts are 380 Development Agreements
TARGETED ECONOMIC
DEVELOPMENT
Home Repair *Incentive Contracts Include:
1. ) Tax Incentives
2. ) 50% Contractor Reimbursement
(New Construction after Demolition)
3.) Roll-Off Containers
4. ) Release of City Liens
(Weedy Lot & Board-up)
5. ) Waiving of City Building Permit Fees
*Incentive Contracts are 380 Development Agreements
HOW TO STRUCTURE INCENTIVES
A Certificate of Occupancy (COO) will trigger:
Release of City Liens
Reimbursement for Contractor Cost
(Only in Full Demolition Scenario)
Tax Incentive Payment (Taxing District Reappraisal)
In cases where Customer does not feel comfortable with Incentive contract, make sure that they still sign a liability waiver for Roll-Off services with your program.
Roll-Off Liability Waiver
Roll-Off Services only issued when Taxes are Current, Demolition Permit has been issued, and Sewer Plug/Septic Tank has been cleared by Inspectors.
DO-IT-YOURSELF CUSTOMER
Family worked on
Demolition for over three
weekends; they were
afraid that home would
become a target for illicit
activities.
NON-PROFIT ASSISTED CUSTOMER
INVESTOR CLEARS OUT EYE-SORE
Investor Demolished
Condemned Structures in
Downtown Area for $6,500
including Demo Cost,
Asbestos Survey, and
Plumbing Cap. Roll-Off
Services Cost $7,213.62
INCENTIVE CONTRACT CUSTOMER
Incentive Contract
customer requested Tax
Incentives, Release of City
Liens ~$10,000, Waiving of
Permit Fees, and Roll-Off
Containers.
ROLL-OFF IMPACT (R.O.I.=6.58+)
Program Budget (Roll-Off Cost)= $145,286.45
Customer Investment/Gain=$1,101,072 + Pending
Return on Investment Formula=(Gain from
Investment-Cost of Investment)/ (Cost of Investment)
ONLY ROLL-OFF SERVICES INCENTIVE INVESTMENT BY CUSTOMERS
Customer Investment Commission District# TOTAL IMAGINE CUSTOMERS
FULL DEMOLITION COUNT 33 $91,320 1 2
RETURN TO OCCUPANCY COUNT 30 $1,004,252 2 3
Customer Investment 3 5
FULL DEMOLITION COUNT 3 $5,500 + Pending 4 25
RETURN TO OCCUPANCY COUNT 17 Pending 5 39
$1,101,072 6 10TOTAL CUSTOMER INVESTMENT
COMPLETED AS OF CUSTOMER # 84
PENDING AS OF CUSTOMER # 84
PROJECT PROGRESS (46% REDUCTION)
VOLUNTARY OPTION=46% REDUCTION
OF ALL IDENTIFIED SUBSTANDARD,VACANT
RESIDENTIAL STRUCTURES IN CITY OF MCALLEN
Total Number of Condemned Structures Identified (From
Survey, Missed by Survey, and Tagged After Survey) 178
Condemned-Tagged After Survey 86
Condemned Structures that currently Qualify for Imagine
Incentives 03/21/16 72
Condemned Structures with Fire Damage 03/21/16 4
Condemned Structures with Delinquent Taxes 03/21/16 25
Condemned Structures with Vandalism 03/21/16 32
Number of Condemned Structures Incented by Imagine as
of 04/25/16
81 (46% Reduction of Total
Identified=81/178)
Number of Condemned Structures Incented without Imagine
as of 04/25/16
24 (13% Reduction without
Imagine=24/178)
Global Statistics as of 04/25/16
NATIONAL RECOGNITION 1st Place in Government Category: Litter
Prevention & Community Revitalization
COMMUNITY RECOGNITION
NEW EMPTY LOT INCENTIVES
The Area in Red collectively lost 1,992 people from 2000-2010.
Recent (2013) *ACS estimates lists an additional loss of
949 people (Total Population Loss of 10% in Red Census Tracts) .
Empty Lots in
Collective Area:
167 Single Family
Lots
200 Multi-Family
Lots
*2013 ACS ESTIMATES SOURCE: http://factfinder.census.gov
EMPTY LOT INCENTIVES EXPLAINED
For New Construction of R-1-Single Family Residential
Tax Incentive Capped at $5,000 for Improvements
Waiving of Administrative Building Permit Fees
Waiving of City Park Fees
Release of City Liens
For New Construction of R-2-Duplex-Fourplex Residential
Tax Incentive Capped at $7,500 for Improvements
Release of City Liens
Note: Putting a Cap on the Tax Incentive Payments is a good way of controlling your Budget and the number of available contracts to customers.
EMPTY LOT INCENTIVES CUSTOMER
Non-Profit is the Developer
receiving Tax Incentives up
to $5,000, waiving of Building
Permit Fees of ~$1,000, and
City Park Fees of ~$700.
EMPTY LOT INCENTIVES CONTINUED
Private Developer
receiving Tax Incentives
up to $7,500. Investor
spent $146,090 for
Development of Duplex
structure.
380 CONTRACTS IMPACT (R.O.I.=17) EMPTY LOT & REHAB INCENTIVE CONTRACT PROJECTIONS FY(2015-2016)
PROGRAM
CONTRACT #
CUSTOMER ROLL-OFF
SERVICES# LOCATION STATUS
DISTRICT
LOCATION TYPE
PROJECTED
INVESTMENT BY
CUSTOMERS
PROJECTED INCENTIVE
PAYMENT
1 19 2505 S. 27TH STREET EXECUTED-08/04/14 4
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (SF) $1,800.00 NONE-Just Demolition
2 20 601 N. 16TH STREET EXECUTED-08/27/14 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (MF) $45,000.00 $1,084.39
3 21 1601 W. IRIS AVENUE
EXECUTED-10/30/14; ROLL-
OFF: 12/22/14 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT(SF) $29,500.00 NONE-Just Demolition
4 58 915 S. BICENTENNIAL BLVD.
EXECUTED-10/08/15; ROLL-
OFFS: 11/05/2015- 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (MF) $77,760.00 $3,000.00
5 NO ROLL-OFF 2200 EBONY AVENUE EXECUTED-11/12/15 5
EMPTY LOT-INCENTIVE
CONTRACT (MF) $93,000.00 $7,500.00
6 NO ROLL-OFF 816 S. 27TH 1/2 STREET EXECUTED-11/23/15 4
EMPTY LOT-INCENTIVE
CONTRACT (SF) $139,209.07 $5,000.00
7 NO ROLL-OFF 1718 N. 12TH STREET EXECUTED-12/07/15 5
EMPTY LOT-INCENTIVE
CONTRACT (MF) $87,552.00 $7,500.00
8 NO ROLL-OFF 612 N. BICENTENNIAL BLVD. EXECUTED-12/07/15 5
EMPTY LOT-INCENTIVE
CONTRACT (MF) $116,584.00 $7,500.00
9 NO ROLL-OFF 2201 FIR AVENUE EXECUTED-01/05/16 5
EMPTY LOT-INCENTIVE
CONTRACT (MF) $104,000.00 $7,500.00
10 NO ROLL-OFF 2121 NEWPORT AVENUE EXECUTED-02/05/16 5
EMPTY LOT-INCENTIVE
CONTRACT (SF) $45,360.00 $2,500.00
11 81 1300 MAPLE AVENUE PENDING 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (SF) $47,115.00 $2,500.00
12 NO ROLL-OFF 912 S. 16TH & 1-2 STREET PENDING 5
EMPTY LOT-INCENTIVE
CONTRACT (SF) $39,396.99 $2,000.00
13 PENDING; ROLL-OFF 312 N. 17TH STREET-LOT 9 PENDING 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (MF) $161,900.00 $10,000.00
14 PENDING; ROLL-OFF 312 N. 17TH STREET-LOT 10 PENDING 5
RETURN TO OCCUPANCY-
INCENTIVE CONTRACT (MF) $161,900.00 $10,000.00
15 NO ROLL-OFF 605 S. 9TH STREET PENDING 6
EMPTY LOT-INCENTIVE
CONTRACT (MF) $179,350.00 $7,500.00
TOTAL EMPTY LOT
INVESTMENT $1,329,427.06 $73,584.39
2015 NATIONAL RECOGNITION 1st Place in Innovative Enforcement Techniques by
American Association of Code Enforcement
COMMUNITY PARTNERS
Q&A
Contact Information-
Speaker: Cesar N. Rodriguez
Title: Code Enforcement Analyst &
Project Imagine Tomorrow Liaison,
City of McAllen
Phone: 956-681-1900
Email: [email protected]
Project Webpage: http://www.mcallen.net/imagine-tomorrow
