Texas Main Street Vacant Building Toolkit

For a quick overview of the various tools available to Main Street cities addressing the issue of VACANT BUILDINGS, check out our Vacant Building Toolkit (downloadable pdf)

Vacant Building Ordinances - Examples from Texas Main Street Cities

Corpus Christi

Cuero

Denison

  • Has an ordinance to prevent storage and living in the first floor of buildings. They also have other ordinances requiring minimum maintenance, but enforcement is the key to success. Click here for Denison's ordinance.

Paris

Uvalde

Winnsboro

  • In 2015, Winnsboro adopted a Vacant Building Registration ordinance to apply some pressure to the property owners of vacant structures. Local feedback has indicated the process does not contain "enough teeth" to be effective. Click here to access their city code and search for Article 3.12 Vacant Building Registration.

San Antonio Vacant Property Registration Program

In June 2014, the San Antonio City Council adopted the Vacant Building Registration Pilot Program. This program was created through OHP’s collaboration with Development Services Department (DSD), Center City Development and Operations Department (CCDO), and Department of Planning and Community Development (DPCD). Focused on spurring revitalization and improving and creating a safe environment, this program establishes a higher level of accountability for property owners to maintain vacant buildings.

 

Learn more about the Vacant Building Registration Pilot Program here.

Other Resources

National Listserv Posts

Fellow Main Streeters.  I would like to know if any of you have any policies, ordinances or resolutions concerning empty buildings. Removal of old signs of previous business, used for storage,  papered up windows, etc.  Appreciate any help or suggestions.

Barbara J. Thielemann, Main Street Central City, Colorado

 

Responses

Hi Betsy and all:

The elimination of storefront warehousing and incompatible uses can be dealt with on a zoning level by addressing/changing “permitted uses”. But when it comes to  the removal of old signage, broken windows, peeling paint…  Address it as part of a comprehensive Downtown Commercial Maintenance Code. Ours was inspired by the City of Charlotte, NC. I think ours has more teeth. If after the owner is given notice and he/she has exhausted the appeals process and they fail to comply, the City has the option to abate and bill or put a lien on the property. It is motivation for slumlords to either clean up or sell.

https://www.municode.com/library/nc/salisbury/codes/code_of_ordinances?nodeId=PTIICOOR_CH14NU_ARTIVOD_SS14-76--14-99RE

Sec. 14-100 through 14-108 - Purpose, scope and applicability, conflicting provisions, compliance, Responsibilities of the owner, Regulations of duties and responsibilities to occupy, Notice to abate, violations and penalties, appeals and hearing.

Good luck, Michael S Young

Michael S. Young | Vice-President | Downtown Graphics Network, Inc.
1409 S. Fulton St | PO Box 4216 | Salisbury, NC 28145-4216 | USA
1.800.884.0855 (USA & Canada) | 1.704.637.0855 (Local Phone/FAX)
michael@dgninc.com | www.dgninc.com

 

Vacant Building Resources and Tools

Article by Brian O'Connor - Economic Vitality Specialist

From the number of emails exchanged recently, it is obvious how pervasive the vacant property problem is and the costs inflicted upon Main Street communities. Vacant and underutilized properties weaken surrounding property values, create maintenance challenges, invite crime and often, though default, become the financial and legal responsibility of local government.  Vacant properties are the poster child for the “broken window” and suggest that a broken window left unrepaired leads to other windows being broken and sends the signal that nobody cares. In such environments, the theory goes; community controls break down, leaving a neighborhood wide open to crime.

Cities pay a price every time the fire department is called to a vacant building, and every time the tax assessor devalues surrounding properties and takes tax revenues off the tax rolls. Therefore, we have to begin measuring the cost of being pro-active against the cost of doing nothing.  A 2012 study completed for Main Street Iowa by economist Donovan Rypkema calculated that a vacant storefront with $250,000 in annual sales costs the community over $222,000 annually in lost rents, property and sales taxes and utilities, supplies, services and salaries not paid.  Vacant property and the blight that follows have become a crisis for cities.  Throughout the nation, the situation is denying local governments of desperately needed tax revenues, consuming millions of tax dollars, eroding the value of nearby property, posing health and safety risks, and complicating already challenging neighborhood revitalization efforts.

The impact of vacant property extends beyond economic loss. Its role in unraveling the quality of life in a neighborhood and dimming the outlook of its residents is well documented. Nothing signals neglect and disinvestment more than a street peppered with empty, overgrown lots and abandoned houses. Not only do neighborhood residents get the message, but the larger community gets it as well. And once that happens, restoring community pride and engagement and convincing others to come in and invest becomes a much taller order.  However, the proliferation of vacant properties only becomes blight upon a neighborhood if property owners are not required to properly maintain their buildings.

Many cities have erred by allowing owners to keep buildings vacant and boarded as long as they were reasonably well maintained irrespective of the building or environmental contained therein.  However, a boarded building sends a negative signal about a community and often poses incalculable risk for emergency service personnel in emergency situations. These buildings are often not properly secured; contain code and environmental hazard and lower adjacent properties values.  For many downtowns, vacant properties are the quintessential drowning man. 

However, any community that has vacant and abandoned properties and sees them only as a strain and a drain is undervaluing the real estate.  Instead, we should be thinking about these properties as stranded economic assets, and municipalities as having a role beyond tax collection that includes trying to figure out how to change ownership of these properties, remediate them, put them back on the tax rolls and turn them into community amenities.

Although, it is up to each community to determine what "vacant" means and the lengths they are willing to go to address it.  Broadly written vacant is:  Any building, structure, or portion thereof, that regardless of its structural condition, is not occupied during the relevant vacancy period and to which any one of the following conditions apply:

  • Property is located in an enforcement area (i.e. downtown).

  • City has issued an order to the building owner requiring that it be secured pursuant to Texas Local Government Code; or

  • City has issued a notice of violation of the City Code to the building owner.

However, there are a number of ways in which Main Street communities can pro-actively direct the conversation.  Therefore, I would suggest that the following steps be considered to bring the issues of vacant property to the forefront.  

  • Sense of Issues - Record how widespread the problems is locally in terms of number of buildings, sq. ft. number of service calls, demolitions, assaults, fires, etc. Quantify the extent of the problem as well as identify the direct and indirect costs to the surrounding community.

  • Public Health & Safety - We can talk about the negative effects vacant property have upon jobs, investment, insurance rates, or the opportunity costs of lost revenues and tax base, however, there often needs to a compelling public purpose for government regulation. Texas is a strong property rights state; however, Public Health & Safety concerns grant local government the authority to correct the situation.

  • Community Engagement - Main Street should convene downtown property owners to speak openly about the vacant property downtown and determine if they are open to some additional form of building regulation. Ordinances are all about enforcing community standards and they’re easier to adopt when agreed to by those who have the most at stake.

  • Educators - As a public health and safety issue, both local police, fire and public health personnel should be actively engaged throughout the process as well as the local building official. The City Attorney should be apprised as soon as possible as he/she will perform a legal review of the proposed code and subsequent ordinance changes against state statutes and court decisions.

  • Community Standards - The Municipal Code Corporation (municode) is the nation’s leading legal publisher and establishes a foundation for changes to local ordinances. See Sample Vacant Property Ordinances to suit the needs of your community.

  • Legal Framework - Incorporate the elimination of vacant downtown property within the City’s Comprehensive Plan. This requires City Council to acknowledge vacant properties as a deterrent to neighborhood revitalization and an objective of the city.

 

1. VACANT PROPERTY REGISTRATION ORDINANCE  

Is one way in which a city can increase its ability to enforce code violations and prevent vacant properties from creating dangerous conditions. Vacant property registration programs typically require owners to register their properties with the city and typically give the city authority to inspect the premises through nominal fees.  Requirements may include a fee, proof of insurance, submission of a maintenance plan, and posting rules. Cities use the fees to pay for health and safety inspections on these properties. Registration ordinances across Texas vary widely in how they have been used to prescribe what types of vacant properties (e.g., commercial, downtown, single family or multifamily) trigger ordinance requirements. As of May 2012, there were more than 550 local VPROs in the U.S., up from fewer than 20 in 2000 and less than 100 at the end of 2007.

Despite how the Vacant Property Registration reads, the purpose of the Ordinance needs to be clearly stated:          

  • Program for identifying and registering vacant buildings

  • Establishes owner responsibilities for vacant buildings

  • Ensure vacant buildings are maintained in compliance with the City Code

  • Encourages rehabilitation or demolition of vacant buildings in an effort to minimize wider community impact

Listed below are some common features of Vacant Property Registration Ordinances taken from across the country.    

Property Registration, Fees, & Inspections

Vacant property registration ordinances typically require the owner to register a property after it a certain length of vacancy.  The key point is the event that triggers the requirement to register properties with the locality in order to comply with the ordinance’s other requirements. The locality frequently collects fees from the owner for as long as the property remains vacant and, in some ordinances, these fees may escalate over time (e.g., the annual fee is higher in year two than in year one). These ordinances require contact information for responsible parties to be included in the registration. 

Examples include the definitions of “vacancy” and “abandonment”, the coverage of property types (residential vs. commercial), exemptions (e.g., for actively marketed properties), maximum fine amounts and how the fines are structured (e.g., per violation or per violation per day), whether and which violations trigger criminal violations, whether insurance (liability and/or casualty) or bonding is required, and whether localities can waive or adjust penalties in negotiation with property owners in order to encourage remediation or redevelopment. The owner must also pay registration fees (ranging from $50 to $500.00 per property) which are, in turn, used to cover the municipal costs of vacant property inspections authorized by the ordinance. The collection of fees allows the city to charge vacant property owners, rather than all taxpayer, for problems generated by these properties.

Posting Requirements 

City ordinances can also require that owners post contact information or warning signs on vacant buildings. The contact information provides a point of contact for the building in the event of an emergency related to the vacant building, including fire or a serious police incident. A posted trespass warning may provide the basis for prosecution of those who enter the premises without authorization. The City of El Paso, Texas provides an excellent recent example of posting requirements for the public and Emergency Service personnel.  

Liability Insurance

Some municipalities require that vacant property owners obtain a minimum amount of liability insurance on vacant buildings. (Cincinnati, OH)

Vacant Structure Maintenance Plan

Some cities require vacant property owners to submit a plan and timeline for how the owner intends to bring the property into code compliance, demolish the building, or return it to occupancy. (Dallas; Arlington, Texas; Cincinnati; and San Diego).

Vacancy Period

The period for determining what constitutes "vacant.” Typically a continuous period of 6 to 24 months in which the building is not occupied.

Occupied (Commercial)

The Ordinance needs to be specific to the building type with clear definitions (commercial, residential, family, etc.)

  • Buildings consisting of one or two stories, to be considered occupied, one or more persons must conduct business in at least 40% of the total area of the building*

  •  For buildings consisting of more than two stories, to be considered occupied, one or more persons must conduct business in at least 60% of the total area of the building*

  • * excluding stairwells, elevator shafts and mechanical rooms

Certificate of Registration

  • Owner must register vacant building no later than 30, 60 or 90 days after building becomes vacant

  • Owner must submit completed registration application to City

  • Owner commits an offense if vacant building is not registered (fine, waiver, appeals process)

Registration Application

  • The registration application is a form that requires the owner to supply the City with detailed information regarding the vacant building to be registered

  • A separate application is required for each building, although a single application is sufficient for a single vacant building that has more than one street address

Notification to City of Changes

An Owner shall notify the city in writing within thirty days after any material change in the information contained in the application for a certificate of registration for a vacant building, including any changes in ownership, intended use, rehabilitation, demolition, or maintenance of the vacant building

Exemptions

  • A vacant building that has suffered fire or extreme weather conditions may be exempted from the registration requirement for a period of 90 days from the date of the event

  • A order to obtain the exemption, vacant building Owner must submit a completed exemption request form to the City

  • If the City official does not issue an exemption within 30 days of the application, the request for exemption shall be considered denied

Inspections  

  • For all purposes relating to vacant building applications and registrations, the City official is authorized at a reasonable time to inspect the premises that are the subject of the application or registration, to include but not be limited to, conducting an inspection in order to determine whether the owner's intended use, rehabilitation, demolition, or maintenance of the vacant building meets the requirements of the City Code for demolition, rehabilitation or maintenance of the status of vacancy, as appropriate

  • Inspectors are authorized to inspect exterior of vacant building, and the interior, if permission is granted by the property owner, or if a writ of entry or warrant is obtained

Insurance and Maintenance Requirements  

  • Prior to the issuance of a certificate of registration for any vacant building, The Owner shall procure and keep in force at all times during the registration term, commercial general liability and property insurance coverage, with minimum combined bodily injury (including death) and property damage limits of not less than $1,000,000 for each occurrence and $2,000,000 annual aggregate (Property Maintenance Code)

  • In addition to the requirements set forth in the Vacant Building Ordinance, owners of vacant buildings must also adhere to the requirements of the Property Maintenance Code

  • Street facade windows and doors. On the street facade, the exterior surface of any window shall not be covered by any substance or adhesive material sprayed, painted or otherwise applied to the windows. All street facade windows and doors having cracked, broken or missing glass or glazing material shall be repaired and replaced with glass and glazing material in a manner compatible with the original design of the structure. (Property Maintenance Code).

Fire Safety and Security

The City of El Paso adopted vacant property criteria based upon the original permitted use of the building and the need to maintain fire suppression systems.

Structures that have a certificate of occupancy designated as assembly (A), business (B), educational (E), factory (F), hazard (H), institutional (I), mercantile (M), or utility (U) shall comply with the following additional requirements:

  • Existing fire suppression systems shall be maintained and be in working order in conformance with the International Fire Code.

  • Security and fire alarms and security lighting shall be installed, be placed in use, and be maintained in an operable condition at all times. Security methods and systems shall be compatible with the original exterior of the structure and not detract from the aesthetic appearance of the structure or adjacent buildings as determined by the building official.

Emergency Response Requirements

  • Owner must provide City with name, address and phone number of a person or persons who can be contacted 24/7 in the event of an emergency condition at the vacant building

  • Owner must notify the City within 5 days of any change to emergency response (ER) information

  • Owner or authorized agent must arrive on‐scene within 1 hour after being contacted by the City for an emergency condition at the vacant building

Emergency Access

Owner must secure property with a “key box” with a lock operable only by a fire department master key and containing building entry keys and other keys that may be required for access in an emergency.

Fire Suppression

The owner of a vacant building that has a certificate of occupancy which is designated as an assembly (A), business (B), educational (E), institutional (I), hazard (H), factory (F), mercantile (M) building, residential (R)*, or utility (U) shall install a fire suppression system that conforms to the standards set forth in the currently adopted International Fire Code and maintain that system in good working order.  *excluding buildings with four or fewer dwelling units

Fire Suppression Exemption

An exemption may be claimed when:

  1. Premises have been cleared of all combustible material and debris

  2. In the opinion of the fire code official, the following do not create a fire hazard:

    • Type of construction

    • Fire separation distance

    • Security of the premises

Placards

Upon issuance of a certificate of registration for any vacant building designated for non‐residential uses or for residential use having four or more dwelling units, the Owner shall install placards approved by the fire chief or designee, which apply the following marking system to alert city or emergency response personnel to potential hazards. 

The following stipulations for placards were taken from the City of El Paso Vacant Property Ordinance:

  • Placards shall be applied on the front of the vacant building and be visible from the street. Additional placards shall be applied to the side of each entrance to the building and on penthouses

  • Placards shall be twenty‐four inches by twenty‐four inches (610 mm by 610 mm) minimum in size with a red background, white reflective stripes and a white reflective border. The stripes and border shall have a two‐inch (51 mm) minimum stroke

  • Placards shall bear the date of their application to the building and the date of the most recent inspection

  • Prior to receiving a placard, all buildings shall be inspected thoroughly by the fire chief or designee

Hazard Identification

Vacant marker hazard identification symbols were also taken from the City of El Paso Vacant Property Ordinance to designate known hazards on the vacant building marker. They shall be placed directly above the symbol.

R/O‐ Roof open

S/M‐ Stairs, steps and landing missing

F/E‐ Avoid fire escapes

H/F ‐ Holes in floor.

 

2. CODE  ENFORCEMENT

Code enforcement can be a powerful tool to address problem properties if the system is working well. Code enforcement is the set of procedures that cities use to compel property owners to comply with government health and safety standards and other property standards. Cities adopt different local ordinances (or “codes”) to address things like housing conditions, dumping, and fire safety. When government officials inspect a property and find a violation of a code, they serve notice on the owner.  If the owner fails to correct the violations, a city in Texas can bring an administrative action in a hearing officer’s court or a civil action in municipal or district court. Depending on the type of action, the court can issue fines, order demolition, or require the owner to take certain actions. If a community is to enact a Vacant Property Registration Ordinance they must be willing to enforce the law through Code Enforcement.    

 

3. LAND BANK

Land banks are created to acquire, manage, and transfer ownership of property. They help accomplish a variety of local and regional policy goals including removing blight, assembling parcels for redevelopment, creating affordable housing, and stabilizing property values.

Sometimes with a lot of liabilities, your only option is to eliminate or reduce them. To be able to turn a liability into an asset is an opportunity that vacant property can provide Main Street communities with.  Cities can take control of vacant, tax-delinquent properties through treasurer’s sales and clear the titles before selling the parcels at a reasonable price to developers, community development corporations, and others with legitimate plans for turning them into neighborhood assets. The land bank allows the county to more quickly take control of a delinquent property through tax foreclosure and made sure it was reused in a way that advances community improvement strategies, rather than selling it off at auction to the highest bidder, who may not have the community’s best interests in mind.

In 2003, the state adopted a pilot “Urban Land Bank Demonstration Program” for the City of Dallas which allows the city to bypass the public auction in a tax foreclosure sale and directly acquire tax delinquent, vacant properties for affordable housing and grocery store development.  Non-profit developers have a right of first refusal.  Since 2005, Dallas has acquired hundreds of vacant lots for development as affordable housing through the land bank program with another 1,500 working their way through the tax foreclosure process.  The City of Houston also operates an active land bank program that is acquiring tax and mortgage-foreclosed properties for redevelopment as affordable housing. 

Receivership

Cities and community-based nonprofits across Texas have the ability to rehabilitate dangerous properties when the property owner refuses to address dangerous conditions, and also has the ability to clear titles to problem properties. Receivership is used successfully in many cities and states across the country, including Baltimore, Cleveland, New Jersey and Texas. Texas has three different receivership statutes that can be used to rehabilitate dangerous properties: 1. hazardous property receivership; 2. community receivership; 3. equitable receivership.

Under Texas law, when a property creates an imminent risk of harm to tenants and the surrounding community, a city or nonprofit housing organization can file a lawsuit and ask a judge to appoint a receiver to take over the property. The receiver assumes the role of the owner and may collect rents, make repairs and rebuild the property with court approval. Depending on which receivership statute is utilized in Texas, the receiver can be an individual, a nonprofit organization, or other entity.

The receiver places a lien on the property for their expenses, but is responsible for fronting the costs of rehabilitating the property. If the owner fails to reimburse the receiver, the receiver can ask the court for permission to sell the property and is reimbursed out of the sales proceeds. Receivership is available for multifamily, single-family, commercial, and vacant properties.

 

Download a PDF of the article above here.