According to Philadelphia’s Revenue Department website, taxes have not been paid since the transfer. Taxes, interest, penalties, and other costs total more than $19,000.

Neighbors are concerned not only about the deterioration of economic value of their homes resulting from proximity to this property, but at least one near neighbor is concerned about the physical deterioration and dangerous conditions.

At a legislative briefing yesterday attended by several Council members, several proposals to collect unpaid taxes were brought up, apparently some of which are already being discussed in City and Commonwealth chambers.  Any reform in tax collections will necessarily address the blight problem, as tax-delinquent properties will as a result be sold and developed into productive real estate.

The most cogent of these proposals involves Philadelphia selling its tax liens.  No, not the way it was attempted in the past, with a huge block of liens being sold to one buyer.  That negotiated transaction is so typically Philadelphia. The deal didn’t work for a variety of reasons, depending on who you talk to.

Alan Domb, as astute and established as they come, made a very compelling argument for Philadelphia to begin selling its tax liens to private investors in an open auction, much the same as New Jersey and other states.  Under this model, anyone would be able buy tax liens with a built-in investment return, and the market for Philadelphia’s old tax debt would very quickly be cleared.

Full disclosure: As someone who has bought and put into productive use many properties with ancient debt, I would be thrilled to buy old taxes, because there are so many properties encumbered with debt where the owners are so long gone even our researchers throw up their hands in hopes of ever finding someone to buy from.

Other proposals being talked about are less promising.  Relying on the current collections companies to collect more taxes is pointless.  These agencies can’t even find owners for the current properties, as doing so takes real research and ingenuity.  Attempting to attach to investors other properties is equally futile, as anyone can hold properties in unrelated entities, making verification of ownership impossible.  Relying on the Sheriff Sale process is, well, if you think the AVI calculation is clouded in secrecy, try to fathom how the Sheriff’s office operates.  Enough said.

Tax lien sales is the only way to efficiently clear out all the old debt, and prevent a similar situation in the future.

The causes, costs, and effects of property tax delinquency – detailed in this week’s PlanPhilly/Inquirer investigative series -
are staggering. Here’s a by-the-numbers breakdown of the city’s complex tax delinquency issues in bite-sized (albeit stomach-turning) bits.

Read more: Ravaged by Neglect.

via How delinquency affects you | Philadelphia Inquirer.

Property-tax debt is ravaging Philadelphia

via Property-tax debt is ravaging Philadelphia.

Kensington Renewal rehabilitates blighted houses and turns them into owner occupied homes. With national banks denying sub $50,000 mortgages, it makes it difficult for families to receive loans and become homeowners. As a result of this, there are many abandoned properties in the city. These abandoned homes become a source for violent and non-violent crime to thrive. It is proven that the lower the homeownership rate is the higher the crime rate will become. By Kensington Renewal rehabilitating these abandoned homes, criminal activity will drastically decrease.

Check out more and help KenzoRenewal win a grant to continue its work

via DoGooder Awards – Philly In Focus.

Read more…

via Plan for a Philadelphia city land bank is taking steps forward.

L&I: Blight Court starting to see success

Over the past few months, some of Philly’s ugliest buildings with plywood-covered door and window openings have begun to blossom with pretty pink L&I notices that they’re in violation of the City’s Windows and Doors policy. And some of them have actually been fixed up. At today’s City Council Legislative Oversight Committee hearing, Department of Licenses & Inspections spokeswoman Maura Kennedy reported that the 6-month-old campaign to take violators to “Blight Court” is showing returns.  She said there’s been a 35 percent compliance rate in installing the required facade fixes, and 100 properties have been sold by owners who cant or don’t want to bother with bringing their buildings up to code. L&I is also beginning to take properties with L&I liens to sheriffs sale when necessary, and has stepped up the average time for sealing a nuisance property from 10 months in 2007 to 10 days today.

Read more via L&I: Blight Court starting to see success | Philadelphia City Paper | 05/11/2012.

Eric Blumenfeld has reacquired the Divine Lorraine Hotel and has reached an agreement to develop the nearby Metropolitan Opera House as well, he said Tuesday.

Blumenfeld took title of the abandoned hotel, a blighted beauty targeted by vandals for years, at a sheriff’s sale Tuesday. Construction is to begin in January to convert the 10-story building into 125 loft apartments on the upper floors and new restaurants on the first two floors.

“I’m working with [restaurateurs] Marc Vetri and Jose Garces and I’m hoping to have a third [restaurant owner] as well,” Blumenfeld said.

On Monday, in the first stage of taking control of the Divine Lorraine, Blumenfeld purchased outstanding debt from New York-based Amalgamated Bank.

Blumenfeld declined to say how much he paid for the note, but the Inquirer put the value of the mortgage, back city taxes and other liens at more than $8 million.

The Divine Lorraine, at Fairmount Avenue, was built in 1892 as the luxury Lorraine Apartments and was one of the city’s first high-rises for the wealthy. Years later, it was the first Philadelphia hotel to be racially integrated.

Blumenfeld said reacquiring the hotel – which he had bought before in 2003 for $5.8 million and then sold to a group of developers in 2006 – is key to remaking North Broad. “The Divine Lorraine represents the real transformation of the corridor,” he said.

Blumenfeld already has put his stamp on North Broad by developing two apartment buildings and several restaurants in or near former clothing factories north of Spring Garden Street.

Now, he said, he is working with the owners of the Metropolitan Opera House, at Poplar Street, to come up with a plan to bring the old opera house back to life.

“I never shy away from a challenge,” Blumenfeld said.

He said he signed a partnership agreement with the Holy Ghost Headquarters Revival Center, which owns the Met, in the past couple of months.

The church’s pastor, Rev. Mark Hatcher, could not be reached for comment Tuesday.

The Divine Lorraine got its name after the charismatic preacher, Father Divine, bought the Lorraine Hotel in 1948.

This vacant lot is cleaned twice a year and only after a multitude of calls to 311 from residents of this block. The last time this lot was cleaned by the city was 02/12. The weeds are in excess of 4 feet. There is garbage and animal waste everywhere. A family of feral cats has taken up residence. The flies are so thick that one has to use the sidewalk on the other side of the street. The owner is neither disabled nor elderly and lives .8 miles from this lot. There is no reason that this lot cannot be kept clean. It is an eyesore and a health hazard.

The OPA indicates this property was purchased in 2010 by for $5,600 and the taxes are current.  Likely an investor owns this waiting for more progress in the neighborhood.

I recommend you contact the Vacant Property Strategy Unit in L&I and make them aware of the situation (if you haven’t already).

The Department identified approximately 25,000 structures in its database that were believed to be vacant because the owner had either obtained a vacant property license, or had been cited for violations that are the likely indicators of vacancy.  The Department mapped these properties, and depending on the market conditions of the overall neighborhood, planned to use a variety of legal tools to hold owners for the state of their properties.

Having identified these properties, the Departments current initiative is characterized by three main objectives.

• Finding the Right Owners: In the past, the City faced difficulties in holding private property owners responsible for the conditions of their blighted or vacant properties. In its current initiative, the Department is using a dedicated team of researchers to cross-reference several databases to find good names and addresses for the owners of vacant properties.
• Utilizing New Enforcement Measures: The Department now enforces the “doors and windows” ordinance passed by Philadelphia City Council that allows the Department to ask the court to find owners $300 per day per opening that is not covered with a functional door or window. In addition, State Act 90 allows the department to ask the court to attach these potentially high dollar fines to owner’s personal property.
• Dedicating Court Time: In the past enforcement, efforts had run into difficulties getting cases into the court system. In its current initiative, the Department has worked alongside with the City of Philadelphia Law Department and Judge Bradley Moss to dedicate court dates exclusively to address vacant cases. This ensures that these cases flow through the legal process quickly.

Through efforts so far, the Department will collect over $1,000,000 in license and permit fees, fines, and unpaid taxes.

via City of Philadelphia: Vacant Property Strategy.

I have been living next to this eyesore for 6 years now with my husband. The owner, a man who we’ve spoken to numerous times, has refused to do anything with this property. Our neighbors have pled with him to sell it, fought with him to clean up the overgrowth year after year and even called him for animals being trapped in the property. Recently, we had vandals break into the property to steal copper piping. Frankly I’m surprised it took this long for people to break in. I credit the delay only to our diligent neighbors and the burden that watching this property has taken on them.

One such neighbor has taken this person to court a number of years ago but I’m not sure what if anything came of the legal action. I’m also not sure what recourse my husband and I have to make this person responsible for this property and its maintenance. My husband and I anticipate trying to sell our house at some point and our property value is perpetually diminishing with each day that this owner takes no action. I’d like to call L&I but know what a bureaucratic mess it can be sometimes. If anyone can give us any helpful information as to how we can get some results, we’d be extremely grateful.

Sincerely,
Frustrated and Fed Up

This property is located in the deeded community of North Woods. Recently a shirtless man was seen in the home, all windows have been bashed out and the doors are broken open. There are many children in the neighborhood and Edmunds elementary school is located around the corner. This is a nice neighborhood and it is very upsetting to see a property abandoned like this.

We suggest you call Licenses and Inspections (dial 311) and report the property as unsafe.  If you get no response, call your Ward Leader and/or City Councilperson – Maria Quinones-Sanchez - until appropriate action is taken.

Thanks for contributing to Abandoned Philadelphia!

Not only does it need to be cleaned up, but the doors are broken, the outside is a mess and the steps are broken.  No one is living in the house nor do they come to make sure its ok. It is really an eyesore. Don’t even know if someone could be inside. You need to see it to believe it.