What Happened?
Lawmakers in Gary, Indiana, have launched a program to reduce the number of vacant properties throughout the city by selling them to residents and businesses for $1. Buyers who meet certain criteria can play an active role in rebuilding the municipality that was hit hard during the economic recession and is struggling to lift its tax base.
The Goal
In Gary, one third of houses are unoccupied and falling apart, left behind when residents moved out of the city over the past five years. Similar to Detroit’s economic struggles that have led to filing for bankruptcy protection, Gary has lost more than half of its population in the past few decades while its leading industries failed and opportunities left the city. Gary has created $8.4 million in liabilities but cannot file for bankruptcy under state law.
To try and turn around the community and re-engage citizens in the well-being of their infrastructure, Gary officials created a program to increase home ownership and neighborhood revitalization. Residents with a minimum income of $35,250 with evidence to suggest they are financially stable and can bring a property up to code within six months are able to purchase abandoned properties for $1.
After living in, and maintaining, the property for five years, the buyers will receive ownership of the home and have the right to sell. The city will offer this program to 12 lottery winners and see how the project improves community development and growth. The creators of the program hope small projects will work to stabilize neighborhoods and increase property values so residents and businesses will want to stay in Gary.
Cleaning Up The Leftovers
As a result of the economic recession, many state and local governments are dealing with large volumes of vacant property that continue to drive down structure values and damage community morale. The city of Cleveland has developed a Vacant Property Initiative Fund that offers loans for the purchase of abandoned or underused commercial and industrial properties throughout the city.
Developers, businesses and nonprofits can apply for the loan program, which aims to tackle the growing volume of properties that have been vacant for several years. All funding from the project can be used for buying the property, assessing the site, tearing down the structure and any new construction efforts.
Similarly, San Diego has created vacant property rehabilitation programs to transform abandoned structures into useful components in the local community and economy. The city helps property owners rehabilitate their structures through financial aid and code leniency, or else help them sell.
The city cooperates with community -based organizations to develop affordable housing opportunities with vacant properties, as well as launch workforce training initiatives on the sites. Property owners must submit for approval a Statement of Intent to have the structures repurposed for community use. When the plan is accepted by the city, financial aid and resources are made available to the owner.
Filling In Space
Gov1 has monitored many projects that work to turn vacant land into useful urban farms or sites for pop-up shops to spur economic activity.