[HISTORY: Adopted by the Mayor and Council
of the City of Hagerstown 1-28-2020 by Ord. No. O-20-01. Amendments noted
where applicable.]
The purpose of this chapter is to facilitate the repurposing
and revitalization of vacant, abandoned tax sale properties located
within the City of Hagerstown. The program will initially be implemented
on a pilot basis in order to determine feasibility, cost, and impact
of repurposing tax sale properties.
As used in this chapter, the following terms shall have the
meanings indicated:
The individual, individuals, or entity that is a party to
a contract of sale (contingent upon City acquisition of subject property)
for a specific property and to whom, pursuant to the terms and conditions
of the contract of sale, the City intends to convey that specific
property if and when the City obtains clear title through the tax
sale foreclosure process.
A 501(c)(3) organization with a mission or purpose that is
focused on providing affordable housing options.
A property shall be eligible for the subject program when it
meets the following criteria:
A.
Subject property must be a vacant structure, a vacant blighted structure,
or an abandoned structure as defined by the City Code.
B.
Subject property is tax delinquent and has been included in the Washington
County tax sale process for at least two tax sale cycles with no transfer
of ownership.
C.
Subject property is not in the process of foreclosure or at risk
of foreclosure by a lien holder or tax sale certificate holder.
With assistance from the Planning and Code Administration Department
("PCAD"), Community and Economic Development ("DCED") staff will categorize
eligible properties for repurposing as:
A.
Vacant and undevelopable: vacant parcel not suitable for building
construction or development per the City Code;
B.
Vacant and developable: vacant parcel suitable for building construction
or development;
C.
Structure in need of rehabilitation: parcel with vacant structure
suitable for rehabilitation; or
D.
Structure requiring demolition: parcel with vacant structure beyond
repair and requiring demolition.
A.
The City will seek interest from owners of contiguous property offering
a potential transfer of property for the sale price of $1.
B.
Notification to contiguous property owners will be made via certified
letters mailed to the address listed on the State Department of Assessments
and Taxation (SDAT) website. The mailing will include a property acquisition
interest form for potential end users to complete.
C.
Interested property owners must complete the form and return it to
the DCED within 30 days from the date of the letter.
D.
End users will be ranked in order of receipt of successfully completed
property acquisition interest form. If multiple property acquisition
interest forms are received at the same time, the DCED review committee
will rank and prioritize forms based upon proximity to the subject
property.
E.
The City will enter into a contract of sale (contingent upon City
acquisition of subject property) with the first owner to successfully
complete and return the property acquisition interest form.
F.
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the successful applicant, the City will
begin the tax sale foreclosure process on the subject property and,
once under City ownership, the property will be transferred to the
end user per the agreed-upon terms in the contract.
G.
If no interested contiguous owners seek ownership of the subject
lot, the City will review the possibility of use for green space,
stormwater management, or other options.
A.
First option: sale/donation to qualified nonprofit organization.
(1)
The City shall solicit interest from qualified nonprofit organizations
based on a policy developed and maintained by the DCED.
(2)
Notification to qualified nonprofit housing organizations meeting
criteria set forth in City policy shall be made via certified letters.
(3)
Interested organizations shall submit the completed form to the DCED
within 45 days from the date of the letter.
(4)
If property acquisition interest forms are received from multiple
qualified nonprofit organizations during the forty-five-day application
period, the City's DCED review committee will review and rank
project proposals based on criteria set forth in City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council (M & C) for approval. If approved by
the M & C, the City will enter into a contract of sale (contingent
upon City acquisition of the subject property) with the selected organization.
(6)
After execution of the contract of sale (contingent upon City acquisition
of the subject property) with the selected organization, the City
will begin the tax sale foreclosure process on the subject property
and once under City ownership, the property will be transferred to
the end user per the agreed-upon terms in the contract.
(7)
If no organization seeks ownership of the subject property or properties,
the City would utilize an RFP open to all interested developers and/or
will review the possibility of use for green space, stormwater management,
or other needs.
B.
Second option: RFP to all interested developers.
(1)
The City shall solicit interest from all potential developers through
a formal RFP process. The opportunity to acquire the property for
redevelopment will be advertised on the City website and in a newspaper
with local distribution.
(2)
The RFP process shall solicit proposals for redevelopment of the
subject property or properties subject to criteria set forth in a
policy developed and maintained by the DCED.
(3)
All RFPs appropriately completed and timely received shall be reviewed
by the DCED review committee.
(4)
If multiple RFPs are received, the DCED review committee shall review
and rank the proposals based on criteria set forth in the City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council for approval. If approved by the M &
C, the City will enter into a contract of sale (contingent upon City
acquisition of the subject property) with the selected developer.
(6)
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the selected developer, the City will
begin the tax sale foreclosure process on the subject property and
once under City ownership, the property will be transferred to the
end user per the agreed-upon terms in the contract.
(7)
If no proposals are received for a subject property, the City is
to review the possibility of use for green space, stormwater management,
or other needs.
A.
First option: direct outreach to qualified nonprofit organizations
with the understanding the qualified nonprofit organization would
agree to rehabilitate the structure.
(1)
The City shall solicit interest from qualified nonprofit organizations
based on a policy developed and maintained by the DCED.
(2)
Notification to qualified nonprofit housing organizations meeting
criteria set forth in City policy shall be made via certified letters.
(3)
Interested organizations shall submit the completed form and return
it to the City's DCED within 45 days from the date of the letter.
(4)
If property acquisition interest forms are received from multiple
qualified nonprofit organizations during the forty-five-day application
period, the City's DCED review committee will review and rank
project proposals based on criteria set forth in City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council for approval. If approved by the M &
C, the City will enter into a contract of sale (contingent upon City
acquisition of the subject property) with the selected organization.
(6)
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the selected organization, the City
will begin the tax sale foreclosure process on the subject property
and, once under City ownership, the City will commence with demolition
of the existing structure.
(7)
After demolition of the structure, the property will be transferred
to the end user per the agreed-upon terms in the contract.
(8)
If no organization seeks ownership of the subject property or properties,
the City would utilize an RFP open to all interested developers and/or
will review the possibility of use for green space, stormwater management,
or other needs.
B.
Second option: RFP to all interested developers with the understanding
that developer would agree to rehabilitate the structure.
(1)
The City shall seek interest from all potential developers through
a formal RFP process. The opportunity to acquire the property for
new construction development will be advertised on the City website
and local newspaper.
(2)
The RFP process shall solicit proposals for new building construction
on the subject property or properties subject to criteria set forth
in a policy developed and maintained by the DCED.
(3)
All RFPs appropriately completed and timely received shall be reviewed
by the DCED review committee.
(4)
If multiple RFPs are received, the DCED review committee shall review
and rank the proposals based on criteria set forth in the City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council for approval. If approved by the M &
C, the City will enter into a contract of sale (contingent upon City
acquisition of the subject property) with the selected developer.
(6)
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the selected developer, the City will
begin the tax sale foreclosure process on the subject property and,
once under City ownership, the property will be transferred to the
end user per the agreed-upon terms in the contract.
(7)
If no proposals are received for a subject property, the City is
to review the possibility of use for green space, stormwater management,
or other needs.
A.
First option: direct outreach to qualified nonprofit organizations
with the understanding the City would undertake demolition of existing
structure prior to transfer of ownership. Qualified nonprofit organization
would agree to acquire a vacant, buildable lot.
(1)
The City shall solicit interest from qualified nonprofit organizations
based on a policy developed and maintained by the DCED.
(2)
Notification to qualified nonprofit housing organizations meeting
criteria set forth in City policy shall be made via certified letters.
(3)
Interested organizations shall submit the completed form and return
it to the City's DCED within 45 days from the date of the letter.
(4)
If property acquisition interest forms are received from multiple
qualified nonprofit organizations during the forty-five-day application
period, the City's DCED review committee will review and rank
project proposals based on criteria set forth in City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council for approval. If approved by the M &
C, the City will enter into a contract of sale (contingent upon City
acquisition of the subject property) with the selected organization.
(6)
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the selected organization, the City
will begin the tax sale foreclosure process on the subject property
and, once under City ownership, the City will commence with demolition
of the existing structure.
(7)
After demolition of the structure, the property will be transferred
to the end user per the agreed-upon terms in the contract.
(8)
If no organization seeks ownership of the subject property or properties,
the City would utilize an RFP open to all interested developers and/or
will review the possibility of use for green space, stormwater management,
or other needs.
B.
Second option: RFP to all interested developers with the understanding
the City would undertake demolition of existing structure prior to
transfer of ownership. Developer would agree to acquire a vacant,
buildable lot.
(1)
The City shall seek interest from all potential developers through
a formal RFP process. The opportunity to acquire the property for
new construction development will be advertised on the City website
and local newspaper.
(2)
The RFP process shall solicit proposals for new building construction
on the subject property or properties subject to criteria set forth
in a policy developed and maintained by the DCED.
(3)
All RFPs appropriately completed and timely received shall be reviewed
by the DCED review committee.
(4)
If multiple RFPs are received, the DCED review committee shall review
and rank the proposals based on criteria set forth in the City policy.
(5)
The DCED review committee will present the recommended proposal to
the Mayor and City Council for approval. If approved by the M &
C, the City will enter into a contract of sale (contingent upon City
acquisition of the subject property) with the selected developer.
(6)
After execution of a contract of sale (contingent upon City acquisition
of the subject property) with the selected developer, the City will
begin the tax sale foreclosure process on the subject property and,
once under City ownership, property will be transferred to the end
user per the agreed-upon terms in the contract.
(7)
After demolition of the structure, the property will be transferred
to the end user per the agreed-upon terms in the contract.
(8)
If no proposals are received for a subject property, the City is
to review the possibility of use for green space, stormwater management,
or other needs.
A.
All property sale contracts are contingent upon City foreclosure
and acquisition of the subject property.
B.
The City shall begin the tax sale foreclosure process once an end
user is identified and a contract of sale (contingent upon City acquisition
of subject property) has been executed.
C.
The City will take all necessary legal steps to execute tax sale
foreclosure of subject property or properties.
D.
The City will pursue necessary legal steps to obtain a judgment against
the property owner who is responsible for all delinquent taxes.
If the owner of a delinquent property desires to voluntarily
transfer the property to the City, the City will consider forgiveness
of outstanding City liens only if the owner can provide clear title
(other than outstanding City liens) and the property can be transferred
without requiring the City to utilize the foreclosure process. Acceptance
of voluntary transfers and any subsequent lien forgiveness are subject
to consideration and approval by the elected body.
Notwithstanding other eligibility requirements contained within
this chapter or within City policy, no individual or entity shall
be eligible for participation in this program if that individual or
entity is the record owner of any tax-delinquent property, or if that
individual or entity is subject to a judgment for delinquent taxes,
or if that individual or entity is otherwise not in good standing
with the City of Hagerstown regarding City taxes, City utilities,
or City licensing programs.
