Will Gray Administration Address City Nuisance Properties?

There’s the crumbling façade of a historic house on N Street that, aside from a chain link fence securing it, has remained frozen in time while all of the adjacent properties were renovated, rented, or sold. A rowhouse on Ridge Street collapsed in the middle of the night in 2007, leaving an empty lot. Two blocks away, the 1970s-era “porto-library,” resembling a highway rest stop, stands boarded up on New York Avenue since it closed 2 years ago.

In each case, the landlord is the same – the DC government.

These 3 properties are in my neighborhood, but there are well over 100 city-owned vacant houses and lots across the city. Many remain in the same condition, and under city control, for a decade or more.

That does not count the larger properties, such as closed schools. Some have promises of future renovation. Others are slated for uses that are not in tune with the District’s comprehensive plan or surrounding community’s wishes. Downtown, the shuttered Franklin School, a historic gem built to teach 400 children as a model educational institution, is slated to become a 30-room boutique hotel.

Meanwhile, the District’s fledgling community college opened its downtown campus in a nondescript office building for which taxpayers pay the rent -- starting at $1.8 million and rising to $3.8 million each year (and an additional $264,000 to $391,909 annually for its parking lot).  The city’s public law school, charter schools, and nonprofits search for space.

The Gray Administration must develop a comprehensive inventory of its property, carefully evaluate the city’s needs, and thoughtfully consider the ideas and preferences of those who live around the sites.  He should quickly move vacant houses into affordable and market-rate housing, preserve our public treasures, and return the larger buildings to productive use.

Evans on Shiloh Tax Abatement; Explanation Doesn't Alter Neighborhood Opposition

UPDATE: At 4:30PM today, Councilmember Jack Evans sent the following message to the community: "In light of the community opposition to the legislation regarding the Shiloh Baptist Church’s properties, I have withdrawn the legislation and contacted Rev. Wallace Smith, Pastor of Shiloh, of such."  Our thanks to Councilmember Evans for listening and taking appropriate action. 

* * *

Yesterday, Ward 2 Councilmember Jack Evans explained his proposal, discussed on this blog, to provide a substantial tax abatement to Shiloh Baptist Church, which owns many blighted properties in the Shaw neighborhood that have been a source of frustration to residents for decades.  Evans explained:

Brian - thank you for writing about Bill 18-1045, the “Shiloh Baptist Church Property Redevelopment Act of 2010.” Shiloh Baptist Church, (Shiloh), owns Lots 820, 821, 822, 824, and 825 in Squares 365, Lot 20 in Square 396; Lot 31 in Square 397 and Lot 46 in Square 421 in Shaw. These properties have been classified at Class 3, Vacant Properties. Currently, Shiloh owes $57,222 (Lot 820); $55,963 (Lot 821); $66,372 (Lot 822); $43,302 (Lot 824); and $58,306 (Lot 825), a total of $281,165 in property taxes on these properties.

The purpose of the legislation is to explore the idea of having monies owed by Shiloh put into escrow and used to renovate the properties rather than paying the money to the District Government. If Shiloh does not renovate the properties in a time period to be determined, the monies would go to the District.

I was approached by the leadership of Shiloh about this issue last year. I asked Commissioner Alex Padro to convene some neighbors for discussions with representatives of Shiloh. I want to thank them for the many hours they gave to these discussions. Several good ideas came out of these meetings. The legislation has been assigned to my Committee and I intend to hold hearings to solicit further neighborhood input. At that point, I will decide which direction to take. 

Jack

Evans' e-mail did little to ease opposition from Shaw residents.

Brian Smith, to whose email Evans responded, had tried to keep an open mind, but "drastically changed [his] feelings on this scheme," stating that he "100 percent oppose[s] any legislation or proposal that would give Shiloh any escrow agreement, break or "deal" on taxes that they owe and have owed for years."  "Currently the District government is roughly 180 million in the hole...correct?" Smith wrote.  "DCRA has been "unable" to collect over $180 million in delinquent property taxes . . . . How would some sort of "escrow" be administered?  Considering the track record of DCRA and the Government as a whole I just do not see that this could be done in any way, shape or form giving Shiloh yet again another gift on a property that the District has ALREADY GIVEN THEM MONEY TO DEVELOP!!!"

"Let me see if I got this right," said David Smith, who serves as an officer of the Convention Center Community Association.  "I own multiple properties--mostly adjacent to each other--which for decades I have kept vacant and allowed to deteriorate into derelict magnets for vagrants and vermin," said Smith in an e-mail to Evans.  Smith continued, "Over the years I make various promises to renovate the buildings, but never deliver on any of them. I accumulate a very large property tax bill because the District government finally applies the appropriate classification to these blighted properties.  But instead of making me pay the taxes, the District Government then offers to reward my bad stewardship by letting me keep the tax money I owe them if I promise to do some renovations on the properties which will remain in my hands. And then, since I'm a church--assuming I actually do the renovations--I can claim that the properties are being used for religious purposes, which means I may never have to pay property taxes on them again.  Wow--I'd say that's a pretty good gift to the worst slumlord in Shaw."

"Jack, This seems like another plan to keep running out the clock on Shiloh's part.. .your email says they approached you last year so that's at least ten months and now you're going to explore this proposal with the community?" questioned Bob Carroll.  "I can save you some time....enforce the laws we all allegedly live under and tell Silo to pay their tax bills.  From what I understand DC could use the cash."

"This is ridiculous!" exclaimed Carmen Gilotte in an e-mail to Evans.  "Good ideas?  Reward Shiloh's irresponsible behavior YET AGAIN?  Why should this church get any more tax breaks?  Why? They are slumlords, they have held the community hostage, and they keep getting help from our leaders to thwart their responsibilities to the law, the community and the city.  Stop the insanity!  Make them pay what they owe!"

CCCA President Martin Moulton has also chimed in, noting other Shaw churches, such as First Rising Mount Zion Baptist Church and Asbury United Methodist Church, have substantial property holdings and have completed major projects without imposing a burden on the community or seeking special tax abatements.  "These churches -- unlike Shiloh -- have creatively made dreams a reality and with hard work and commitment shrewdly found ways to make the impossible possible," said Moulton.  "Once Shiloh pays its appropriate taxes, I believe the District government should do everything reasonable to to assist Shiloh in making the 1500 b/o 9th Street a dynamic part of a critical area in the heart of the nation's capital."

Evans Promises Slumlord $100,000 Tax Break

According to an article in the Washington Business Journal, Councilmember Jack Evans (Ward 2) has proposed that the city tax a strip of vacant properties owned by Shiloh Baptist Church along the long-neglected Ninth Street corridor in Shaw as if they were occupied, a move that would save the church about $100,000 each year.

The brief history is that Shiloh has left these properties vacant for decades, severely damaging the recovery of the area just west of the Convention Center.  Numerous promises were made of grand plans for senior centers and housing.  For years, the church evaded the city's vacant property tax, which attempts to shift the cost of such nuisances from the community that deals with the increased vagrancy, drugs, public urination and defecation, public drinking, trash, rats, and dumping that results (and to which the Shiloh properties are prime examples) to the owner.

In the face of complaints from residents who felt the impact of the derelict properties on their safety and quality of life, the city finally imposed the higher tax rate.  In addition, in 2007, the Fenty Administration stepped up and condemned several of the properties.

In the ultimate snub, however, Shiloh then obtained from the Department of Consumer and Regulatory Affairs (DCRA) an exemption from the higher tax on the basis of work permits obtained to make the minor repairs necessary to abate the condemnation order (even though the law clearly says that the permits must be for work to make the property fit for occupancy).  Residents went ballistic and Shiloh's properties were reclassified as vacant, subject to the higher tax.  The city, however, let the church off the hook for the approximately $100,000 in additional taxes the church would have paid that year at the higher rate.

Good fortune again intervened for Shiloh in 2009.  Before the church got hit with the higher rate, the D.C. Council repealed the vacant property tax.  Shiloh still risked paying the new "blighted" property tax.

On October 1, thanks to Councilwoman Muriel Bowser, a revived higher tax rate for vacant property went into effect, leaving Shiloh subject to five times the residential tax rate.

The higher property tax appears to have finally provided the long-needed incentive for Shiloh to sell off two of its vacant houses and develop several others into office space for nonprofits and senior housing.  Evans' proposal to reward the church with hundreds of thousands of dollars in tax breaks, at a time in which the city is cash-starved, is fiscally irresponsible and sends precisely the wrong message to slum property owners.

Resident reaction to the proposed tax abatement was angry and swift:

"An owner is supposed to get a pass if they have a valid permit or pending zoning application. This owner should not get any special treatment especially given their 30 year slumbanking history."

"I would be supportive of this IF it was done in a manner that it was a carrot for taking action NOT done before the project began."

"The neighborhood conceded angle parking on Sunday with promises of fixing up their properties -- and that was when people were living in some of them. You have to be kidding yourself that a hefty tax abatement will make them move any faster or in any way whatsoever toward ameliorating their decayed properties."

"Shiloh has no intention of ever rebuilding. They game the city and the pols and get whatever they want while everyone else gets screwed over."

Exempt Shiloh's properties from the vacant property tax when they are no longer vacant.  That's an exemption the community can fully support.

Wrapped in Billboard, Mansion Rots at 11th and K

2004 Official DC File Photo of 1001 11th Street NW

Why is it that in the District it is perfectly legal to take a grand old mansion, board it up, wrap it in a billboard, surround it with a chain link fence, ring it with barbed wire, and pay the typical commercial property tax rate...late, no less?

Welcome to 1001 11th Street NW, just two blocks west of the Washington Convention Center smack in the middle of Logan Circle and downtown.  It's the perfect location... for billboard blight.

Back in the day, this was the home of General Harrison Allen, according to Victorian Secrets.  After helping push back Lee at Gettysburg, Allen entered politics first in Pennsylvania and then in the new Dakotas.

 “In General Allen's Washington, the most fashionable addresses were on K Street NW. However, the most elite mansions were slightly west. The more easterly blocks of K Street were more the province of complementary-styled townhouses clustered about a flamboyantly turreted central house. An outstanding example, the nine Second Empire houses of Mount Vernon Row, stood at Tenth and K Streets NW.  The house, listed as 1017 K Street, appears to have been a mini-version of a row, with complementary-styled smaller houses at 1015 K and 1001 Eleventh Street attached to either wing.”

Official DCRA Photo of Approved 75' x by 30' Billboard

Since July 2003, Allens old digs have been owned by Jemal's Bulldogs (aka Doug Jemal), who bought the property for $650,000.  About a year after purchase, the building was in the condition to the right, as seen in the official DC photograph that appears in property records.  Three months later, Jemal received approval to use the property as 1 of just 32 "special signs" in the District, aka billboards.  For the past six years, Jemal has rented the space to Van Wagner, the outdoor advertising giant that explicitly takes credit for "initiat[ing] the legislative changes that led to the authorization of advertising murals, in Washington, DC."  In turn, Van Wagner proclaims, "Today, we are the market leader and operate most of the lawfully permitted sites in the highly coveted District."

The billboard, I mean, special sign, I mean, mural at 11th and K is 75 feet long and 30 feet high.  It wraps the building, which is likely deteriorating underneath, while the owner likely brings in tens of thousands of dollars of advertising revenue each month.  The property is recorded with the District for store/miscellaneous use.

11th and K Streets Today

Although the property is clearly vacant and some would consider it a blight, Jemal pays neither the vacant property rate of $5 per $100 value or the blighted property tax of $10 per $100.  Instead, he pays the regular commercial property tax of 1.65%.

The property has tripled in value since Jemal purchased it seven years ago - it is assessed by the city at $1.9 million.  Although Jemal must rake in the dough on this property, his company still seems to have a history of repeatedly being late in paying its already low taxes, then paying fines. In fact, the property was listed for tax sale in 2007 after it came up over $25k short.

By the way... wonder how Van Wagner got its self-serving legislation through?  Look no further than campaign finance records.  In 2005, the advertiser contributed $10,000 to Jack PAC, the now defunct slush fund of Councilmember Jack Evans.  Most likely, this was a reward for shepherding through the legislation.  Van Wagner also maxed out with a $1,000 contribution to the Evans' campaign in 2003.   While Evans took the lions share, others benefited.  Van Wagner contributed $2,000 and $1,000 to the reelection campaigns of Mayor Anthony Williams and Chairwoman Linda Cropp in 2001.  Councilmembers Harold Brazil and David Catania received smaller donations.

Isn't it about time to get rid of the mural at 11th and K, save this historic building, and return it to productive use?

On a Quest?

What's the deal with that property?  There is an interesting tool on the District government's website, Property Quest, that may provide some quick answers.

This interactive database developed by the Office of Planning combines several DC government resources to allow the public to look up any property in the District.  Put in an address or a square and lot number, and it will provide plat and arial maps, and ownership, zoning, and tax status.  Property Question will also note whether the property is within a historic district, its political representation (Ward/ANC), and its police district.  It will provide a photograph of the property and provide a link to Google Maps street view. 

What may be most helpful about this tool is that the user can click on any property and pull up the information.  That's particularly useful when the precise address of a property is not known.

There are some limitations.  The database is not integrated with the DC Public School System, which would allow users to determine the schools for which the property is zoned.  It also could provide more than the Ward, Advisory Neighborhood Commission, and Police Service Area number that the property is within, but also the name of each official, an e-mail link, and other contact information.  Finally, the database provides only property ownership, not business, information.  In the future, Property Quest could integrate data available from the Alcoholic Beverage Regulation Administration on ABC licenses or Department of Consumer and Regulatory Affairs regarding certificates of occupancy and business licenses.

You can find links to Property Quest and many other fun DC resources on the bottom of the side panel of the Other 35 Percent.

News Round Up

Annie Ropeick, an intern at NPR, was randomly stabbed at 7th and H Streets NW at 9am Wednesday.  Annie stands in front of a vacant building in Mount Vernon Square.  Photo: NPR.

Intern stabbed in Chinatown.  There doesn't seem to be any news on the condition of Annie Ropeick, 20, an NPR intern who was randomly stabbed in the neck, with no warning, by what appears to be young woman with mental illness.  It happened yesterday when Annie was walking to work at a busy intersection in Chinatown, just outside the PNC Bank at 7th and H Street NW.  According to witnesses at the scene, given the amount of blood, they presumed her dead.  Fortunately reports confirm that she made it to Howard University hospital and her family was at her side. Good samaritans acted quickly to hold the assailant, 24-year-old Melodie Brevard, and care for Annie.  Annie, a Silver Spring, Maryland native, is entering her junior year as a classics and philosophy major and student journalist at Boston University.  She is Executive Producer of Intern Edition at NPR, blogger, and a cappella singer.  Keep her in your thoughts.  UPDATE: According to Boston University's student newspaper, a family source said her injuries were non life-threatening, and that doctors expect her to make a full recovery.  “She was conscious and talking the whole time,” the source said.  “Basically, she’s a lucky girl.”

Fenty Loses on Home Turf.  Last night, Mayor Adrian Fenty has actually managed to lose a straw poll in his home Ward 4 to challenger Vince Gray.  In fact, gray came within 2% of the 60% vote needed for an outright endorsement of the Ward 4 Democrats at the roudy forum.  You can watch the entire forum online here.  After sweeping every precinct in the city in 2006, Fenty has squandered this good will to lose straw polls in every area except Ward 2.  Can he turn the momentum around as the primary approaches in just six weeks?

Can't Go Home Again.  Washington CityPaper reporter Lydia DePillis exposes how the city's Home Again program, which was formed to eliminate neighborhood blight, has instead perpetuated it.  "The Department of Housing and Community Development is now phasing Home Again out—but many properties are still stuck in its portfolio, mired in litigation and bureaucracy, sticking neighborhoods with blight that otherwise might have been cleared up long ago. Which is, of course, exactly what the program was set up to avoid."

ANC Election Season Begins.  DCist reminds us that nominating petitions for Advisory Neighborhood Commissioner positions are now available.  While it only takes 25 valid signatures to get on the ballot, these positions are important and can have a significant effect on the quality of life in a neighborhood.  They can promote or discourage development, permit or stop more liquor stores from opening, fund beneficial and worthwhile projects or give taxpayer dollars to friends and political supporters, and demand community involvement in government policy decisions or stay silent.  You can view the list of candidates who were first to pick up nominating petitions.  Think about running.  Make sure to cast an educated vote.

A New DYRS?  Think Again.  For those who thought Mayor Fenty's appointment of prosecutor Robert Hildum to head the Department of Youth Rehabilitation Services would take the troubled agency in a new direction, that assessment is already looking fuzzy.  The Examiner reports that among Hildum's first actions was to hire Linda K. Harllee-Harper to serve as the agency's head of internment.  Harllee-Harper formerly served on the Board of Directors of Peacoholics, the organization that received millions in public funds during the Fenty Administration and has worked closely with Ron Moten, the organization's founder -- you know, the one who compared Fenty to "Jesus," was involved in the fire truck sent to the DR, was accused of paying youth to vote in a straw poll for Fenty, protested Council legislation against vote buying, and sued a Ward 8 ANC Commissioner for libel.  Now Harllee-Harper will "play a pivotal role" in awarding DYRS contracts to organizations, including Peaceaholics.  Taxpayers, hold onto your wallets.

Free Summer Movies in Mount Vernon Triangle.  Patty Yao, a native Taiwanese and contestant in the 2010 Washington Metropolitan Miss Chinese American Pageant Finals will sing live at the DC Premier of Cape No. 7 on Sunday, August 8, at 8pm at 5th and Eye Streets NW.  The Taipei Economic and Cultural Representative Office in US presents this second of five free outdoor movies in the Five Eye Asian Film Series, Cape No. 7 is the highest grossing film in Taiwan's history.

DC Gov Would Take Away Little Disabled Pet Chickens From Children.  The Washington Post profiles a Capital Hill family that had to send their pet chickens to a farm in Virginia.  "Flash is a chocolate-colored bird in that awkward stage of chickenhood, somewhere between chick and hen. Flash also has a deformed leg. Sam's sister, Maxine, 7, explains why they have to care especially for the crippled bird. 'He's smaller than the other birds because he can't feed himself so well,' she says."  The family applied for a permit from the DC Health Department and built a mini-chicken coop in their backyard with the support of neighbors.  All seemed to be in order until the Department declared the hens illegal, finding that their own regulations allowing chickens are superseded by a contradictory statute banning poultry and any other creatures not specifically allowed. "Sam and Maxine, meanwhile, are left with the worms to find and play with. If that's allowed."

Home Again: The Good, The Bad, The Ugly

In 2002, Mayor Anthony Williams introduced the "Home Again" initiative, a program designed to transform vacant and abandoned residential properties into single-family homeownership opportunities for residents.  About a year ago, it died, and no one even noticed.

The program "bundled" groups of vacant houses and lots.  It placed the bundles up for purchase by developers meeting certain qualifications.  Developers were required to set aside a certain number of the houses in the bundle for affordable home ownership opportunities, while it would set the remainder at market rate.  Keep in mind, these are not large city-owned properties like school or office buildings, but private homes that fell into government hands usually because of a calamity, such as a fire or collapse, or because it was abandoned.

While the program had some initial successes, I came to notice that many of these properties, sat and sat some more.  Given the emphasis placed to addressing privately owned vacant properties through the vacant property tax and increased enforcement, it seemed wrong that city-owned properties were left to rot.

A Mount Vernon Square house in the program (460 Ridge Street NW) collapsed in November 2007 and the lot was then neglected.  Nearby, another property in the program, a historic facade, remained in that state for years while nearly every other house on the block was renovated and sold (454 N Street NW).

Last summer, I decided to investigate.  I found that the District's Home Again website had not been updated since April 2004.  It remains in that state today.  I also tried to find out the status of the properties in the Home Again program the old fashioned way -- calling.  The phone number listed for the program immediately went a voice mail that appeared to be a wrong number.  There was no e-mail contact information listed on the website.

Finally, I found a number for Home Again on a 2006 press release that led to the Department of Housing and Community Development's "Property Aquisition Disposition Division."  On the third try, I reached someone. "There really isn’t a Home Again program," she said.  Responsibility for the program now is through the Aquisition Disposition Division, which is now auctioning off the properties.

That brings us today.  One year since my initial inquiry I toured Home Again properties.  Through DC Atlas, I found 113 properties identified by the city as in the program.  One in four are vacant homes ("vacant improvement") and the remainder are empty lots.  They are in every area of the city except Ward 3.  The most, 47, are concentrated in Ward 5.  I began by visiting properties in Wards 1 and 2.

I expected the worst.  Overall, however, the properties are secure and maintained.  That may not have been the case for many of them months ago, before "No Trespassing" signs suddenly appeared.

Two of the lots included a notice that they were among 18 to be auctioned off on June 30, 2010 at the Washington Convention Center - 501 Rhode Island Avenue in Shaw and the prime real estate Logan Circle property at 1335 R Street NW (The Victorian next door to the Logan Circle property sold for over $1.1 million in 2000).  According to Housing Complex, the 13th and R Street lot went for $590,000 after a bidding war.

According to a press release, this was the second such auction of government-owned vacant property by the Property Acquisition and Disposition Division [results of the 1st posted here]. Only bidders in specific categories were allowed to participate in the auction: home buyers who intend to occupy the property as their primary residence; non-profits; and DC Certified Business Entities. The Department of Housing and Community Development will hold a public hearing in August to announce the proposed disposition plans for the auctioned properties.  That may be progress.

Another two of the properties, both in Columbia Heights, had already been sold and developed into condominiums - 2809 Sherman Avenue and 3004 13th Street NW.  Also good.  The house on Sherman appears to have been purchased in March 2009 (sale price not listed) and then sold as two units for $395,000 and $459,750 last summer.  The 13th Street property was auctioned off for $380,000 in January 2009 and then sold as two units this past March, with each fetching over $550,000.  Wow.

There were some bad cases.  In Ledroit Park, a historic corner property at 475 Florida Avenue NW has a skylight that is not of its own making.  Curious that it sits in this condition, since it was apparently auctioned off by DC in the first batch of vacant properties for $300,000 in January 2009 - did the sale fall through? 

At 756 Park Road NW, a nice block that includes a police station also has a boarded up Home Again property - it's also on the list as sold in January 2009 (for $160,000).  Huh? 

It's only a matter of time before what is left of 454 N Street NW collapses like its neighbor at 460 Ridge Street NW.  At 1319 Harvard Street NW, neighbors appear to have taken charge by hiding an enclosed empty lot with a beautiful flower garden.  Good for them!

The ugly, however, is 709 Kenyon Street NW.  Posted prominently on the front of the house is a notice by the fire chief condemning the property as unsafe.  The rear of the house, along with the roof, has partially collapsed.  The alley alongside the property was filled with trash and empty beer cans and bottles.

Ward 1

475 Florida Avenue NW (Ledroit Park)

 

1319 Harvard Street NW (Columbia Heights)

756 Park Road NW (Columbia Heights)

709 Kenyon Street NW (Columbia Heights)

2809 Sherman Street NW (Columbia Heights)

3004 13th Street NW (Columbia Heights)

Ward 2

454 N Street NW (Mount Vernon Square)

460 Ridge Street NW (Mount Vernon Square)

501 Rhode Island Avenue NW (Shaw)

  

1818 6th Street NW (Shaw)

1735-1737 10th Street NW (Shaw)

1335 R Street NW (Logan Circle)

Gray Announces 3 Agencies to Fix, No More Earmarks

Tonight, DC mayoral candidate Vince Gray announced three top priorities for fixing the District's government agencies.  The first target -- the Department of Employment Services -- "he's not sure what they do" beyond the summer jobs program.  Next up, the position of the Deputy Mayor for Education.  Gray says its time for a "more aggressive, more assertive" person in that role, one that coordinates policy between UDC, DCPS, charter schools, and other programs.  Last, but not least, Gray stated that he would develop a cohesive economic development strategy that would focus on growth areas such as healthcare, educational services, and green jobs, and make the District a national leader for financial services companies.

Gray avoided providing any hint on who in the current Administration he might keep on if elected mayor.  Given his current position as Chairman include oversight over DC government agencies, I asked Gray to name two agency directors or other appointees that he thought were doing a great job and two others that he thought were not quite up to par.  Good try, but he's not answering, Gray responded.

Here are additional highlights of the joint forum sponsored by the Convention Center Community Association and Mount Vernon Square Neighborhood Association.

Gray on Earmarks

• Gray's elimination of earmarks was not solely due to budgetary necessity, but also a matter of policy.
• The DC Council has not followed its own earmark policy, which is supposed to limit them to $250,000 in operating funds per organization per year, up to $1 million for capital projects, and not permit repeat earmarks to an organization.
• He would have competitive grant programs available in several categories, rather than earmarks.  Grants could be available for multi-year programs because some issues cannot be addressed in a single year.  There would be oversight and accountability.
• Any organization that gets money from the city should have its performance evaluated by a city agency and, if it is not meeting established goals, have a remediation plan.
• Note: Ron Moten of Peacoholics, who participated, expressed frustration that Ward 5 groups friendly with Councilmember Harry Thomas have received DC funds despite elimination of earmarks, declared that he is against earmarks and for competitive grants.  More on that in a follow up post.
• My view:  Good plan, if it is implemented.

Gray on Education

• In his opening remarks, Gray emphasized the need for parity between public schools and charter schools.  As mayor, he would make unused or underused public facilities available for charter school and nonprofit use.
• He emphasized his support for universal pre-school.  DC will be the first city in the country to guarantee seats for all 3 and 4 year olds in September 2012.
• Gray also pushed his role in creating UDC's community college, which has acquired 3 campuses.
• He will advance a holistic approach -- 0 through 24 education.
• DC has the worst special ed system in the nation.  DC spent $166 million last year on special education, including $90 million to transport students to facilities outside of DC.
• My view: I appreciate Gray's focus on the entire system.  I'd like the Mayor to respond to why it appears he has a poor relationship with UDC which seems to be moving forward despite him.

Gray on Vacant Properties

• As Mayor, Gray pledged to increase enforcement of the city's higher tax on vacant property by hiring more DCRA staff.  These jobs pay for themselves, he said.  He did not get into details about the vacant property law, but noted that the Council had finally defined "vacant" v. "blighted."
• My view: Great, but is this an empty campaign promise targeted to address an area of concern for Shaw residents?  What was Gray's position on taking away and re-instituting the vacant property tax, and on what it should cover or not cover?

Gray on Juvenile Justice and Crime

 "We have bikes.  We have segways.  We have walking.... that's been around for decades."

• The purpose of juvenile justice is rehabilitation.
• New Beginnings, the JV detention center, is overcrowded and needs additional beds.
• Did not respond to the concern expressed by judges that they lack authority to sentence juveniles, which the city can let out at will.
• Acknowledged that some violent offenders are let out too soon.
• The city needs to invest more in the community placement system if this is to be an alternative to incarceration.
• Does not support the proposed "civil injunctions" as a means to curb gang violence because they will result in racial profiling and pull in people who are not criminals.
• Would push for more community policing. According to Gray (citing an MPD report), only 300 of 4,000 officers are involved in community policing.
• My view: I heard him provide a stronger view on JV justice's failure at the Ward 3 Democrats forum.  It's broken.  Community policing is a nice buzz word, but it's not quite tangible.

Gray on Lack of Growth on 9th St. and Unwanted Development

• Advisory Neighborhood Commissioner Mike Bernardo (ANC 2F) expressed the communities frustration with the slow pace of economic development on Ninth Street NW.  A Shaw resident noted her concern that the owner of a property in Shaw had opted to develop a group house rather than the initially planned condominium due to zoning restrictions.  
• Gray proposed more "small area neighborhood plans," such as that developed for Chinatown, as the answer.  Since the summer of 2008, Gray noted that the Office of Planning, which falls under his oversight, had developed 15 small area plans that reflect what the community would like to see in their neighborhood.
• My view: I'm not sure how realistic developing such plans would be and, as I expressed in a later question on the Bundy School, plans aren't worth a dime if they are not followed or ignored.

Gray on Bike Lanes and Smart Growth

"I thought they were high when they did [the Pennsylvania Avenue bike lanes].  They are really ludicrous."

• Gray doesn't bike, but he supports bike riding and encourages it as energy efficient.
• Reserved bike lanes in some areas of the city (i.e. 9th Street NW) back of traffic.  In other areas, the lack of bike lanes have the same result.  The lanes do not seem well planned.  "I'm not sure we have figured out how to do it yet," said Gray. 
• Pennsylvania Avenue lanes are particularly dangerous.
• Supports transit-oriented development around metro stations.
• My view: I didn't get the impression that installing more bike lanes would be high on Gray's priority list.

Gray on Church Parking

"I'm not suggesting blame on either side."

• Gray acknowledged that the city should enforce the law when drivers block crosswalks, hydrants, or other cars on Sundays.
• He'll work with the community and churches to solve the problem.
• My view: Ironic that Gray makes a stink about how Maryland and Virginia residents don't have to pay DC taxes, but then suggests out-of-state residents who ignore DC law have equally valid concerns with DC residents who have legitimate safety and quality-of-life issues.

Gray on the Bag Tax

• Took issue with the Mayor's reallocating the money from cleaning up the Anacostia, as designated, to regular street cleaning purposes on the purported rationale that refuse blows into the river.
• The Council has redirected the money collected from the tax back to river cleanup.
• My view: Good.

Gray on the Bundy School

"Get a new Mayor, one that is more collaborative."

• Given his support for community planning as well as his support for offering vacant DC properties to nonprofits, I asked Gray how he would have addressed the Bundy School as Mayor. (The Bundy School, located on the 400 Block of O Street NW) is slated for residential and recreational use in the District's Comprehensive Plan, but was given to Safe Shores, a child welfare agency/nonprofit partnership).
• Gray responded that the city should stick with the plan and there should be no surprises.
• My view: Gray wasn't aware of the situation. I agree that the city should have stuck to the Comprehensive Plan, and engaged the community at an early stage if it was going to go in another direction.

14th & Geez, Part III

Today's Washington Business Journal takes up a big question on the minds of downtown workers,what the heck is the deal with the large vacant National Bank of Washington building and several properties at 14th and G Street NW. 

The prime real estate was bought up between 2001 and 2003 to house a 50,000 square foot Armenian Genocide Museum, and has sat empty ever since.  In addition to the Hahn Shoe store, the project swallows up the ruins of a large office building, and such former businesses as Shelton's Salon & Day Spa and the Olmstead Grill, Clement's Pastry Shop, the Dragon Exotic Massage Parlor, a nail salon and tattoo parlor, a brewing company, a newstand, an Italian restaurant, and a vacant lot.  Housing Complex chimes in, noting that the properties are "to stay empty for quite a while more."

I explored this situation about a year and a half ago in a two-part series.  [14th & Geez, Part I / Part II]. Unfortunately, it seems as if the situation has only further deteriorated.  The owners owe the city more than $350,000 in taxes and face a lawsuit from a major disgruntled donor.

If you're curious, you can see how much these properties are worth and how much the owners have paid in property taxes over the years through these links:

• 0253 0053: 1342 G ST NW purchased for $1,340,000 on 12/16/2003.
• 0253 0054: 1340 G ST NW purchased for $1,700,000 on 3/19/2001.
• 0253 0055: 1338 G ST NW purchased for $1,350,000 on 12/16/2003.
• 0253 0067: 615 14TH ST NW purchased for $4,121,600 on 12/30/2003.
• 0253 0817: 1336 G ST NW purchased for $6,500,000 on 11/04/2003.
• 0253 0818: G ST NW purchased for $6,500,000 on 11/04/2003.

For years, my law firm was located across the street.  One year ago, we moved to a brand new building a few blocks away... but nothing has changed at 14th and Geez.

"The Holdout": WP Article on "Ledos Pizza"

The Washington Post today tells the story of the lone surviving townhouse on Massachusetts Avenue NW between 4th and 5th Streets NW.

The owner, an architect who bought the building in 1980 for about $135,000, had refused offers of up to $2.75 million for the little property as developers made plans for condominiums a few years ago.  Ultimately, they worked around him, putting up new high rises on both sides and behind the building.  He then vowed to start a Ledo's Pizza until a dispute with Adams National Bank led to the end of the financing for the needed renovation.  The house, built in 1890 and dwarfed by its neighbors, is a reminder of the houses that once sat on Massachusetts Avenue in times past.  It now sits vacant.

Developer types throw around ideas for the spot. A cafe could work, perhaps, or a bar or restaurant.  Whatever opens, Cary Silverman of the Mount Vernon Square Neighborhood Association said, he has the perfect name: "The Holdout," an eternal reminder to anyone and everyone "to not make unreasonable demands."

Vacant Properties for Sale

The District is auctioning off 18 vacant properties to the highest bidders on June 30 at the Washington Convention Center.  It's just the tip of the iceberg of the hundreds of DC-government owned vacant properties, but it does represent progress.  Those eligible to bid include (1) individuals who intend to purchase the property and reside in the property as their principal place of residence; (2) businesses that are active "certified business enterprises" registered with the District of Columbia Department of Small and Local Business Development; and (3) Not For Profit Corporation. An individual can't win more than one property and a CBE or nonprofit can get no more than two properties, according to the rules.

Five of the eighteen vacant properties are in Ward 2 and most are within 10 blocks of my home (from top to bottom): 922 French Street NW (Shaw / Logan Circle), 1713 New Jersey Avenue NW (Shaw / Bates Area), 1335 R Street NW (Logan Circle), 501 Rhode Island Avenue NW (Shaw / Bloomingdale), and 900 T Street NW (Shaw / Howard Univ.).  It will be interesting to see how much they sell for. 

Welcome back, vacant property tax!

According to the Washington Business Journal, the vacant property tax is back.  That's good news for those who live in neighborhoods inundated properties that have sat vacant for many years and are often under assessed.

Last night, the budget adopted by the DC Council restored the vacant property tax at the rate - $5 per $100 of assessed value - that was in effect prior to 2008, when the DC Council, in an election year, doubled it to $10 and eliminated most exemptions.  That change, combined with increased enforcement by the Department of Consumer and Regulatory Affairs (DCRA), led to push back that ultimately led to the demise of the tax.  It was replaced with a "blighted" property tax that basically only applied to houses that were already subject to condemnation and applied only to about 2% of the vacant properties previously subject to the higher rate.

Questions remain as to whether the final adopted Budget Support Act also restored some of the most frequently abused exceptions (such as those that allowed owners to evade the tax by obtaining a permit for the most minor work or placing a "for sale" sign on the property) and whether the tax will apply to both vacant lots and "improved" properties (houses and stores).  Vacant lots had been removed from the "blighted" property tax, a strange distinction since vacant lots can be an even greater magnet for crime, dumping, loitering, and litter, as empty homes.  Also unknown at this time is when the vacant property tax will be back in effect.

[As a side note, I'm still waiting for the day that the D.C. government provides its citizens with a legislative monitoring system that allows us to accurately view the status of legislation, amendments, and the final version of passed laws in something approaching real time.  Nearly every state promptly makes such information available to the public.]

Vacant Property Tax to Make Comeback?

The Washington Business Journal reported last week that Councilmember Muriel Bowser's Committee favors reestablishing the higher tax rate on vacant properties rather than Mayor Fenty's proposal to place a graduated registration fee on owners of vacant property ranging from $250 in the first year to $5,000 in the fifth year.  Currently, there is incentive placed on owners of vacant property to put their homes or businesses back into productive use other than a $20 registration fee.

The Committee's report [PDF, see pages 69-80] concludes "The Mayor’s proposal is simply not strong enough during the beginning years to encourage property owners to action. And, a fee, because it is not tied to a predictable, preexisting payment schedule and collection scheme, is more difficult to collect."

Instead, she proposes keeping what is now called the "Blighted Property Tax," which is $10 per $100 of assessed value, as Class 3, and reestablishing the vacant property tax at the $5 level as a new Class 4.  According to the committee report, Councilmember Bowser has the support of Councilmember Evans, who serves as Chairman of the Committee on Finance and Revenue and who takes credit for establishing the tax to address the concentration of vacant properties in Shaw.  In addition, the current vacant property registration fee of $20 would be increased to $250, "a level necessary to offset the administrative and inspection costs associated with monitoring and inspecting the Districts vacant properties."

The committee report proposes few, narrow grounds to escape the tax because "previous iterations of the vacant property tax law were rendered ineffective by property owners who dodged the tax by claiming illegitimate exemptions."  It would retain exemptions, limited to a one-year term, for properties actively listed for sale and rent, undergoing construction, facing economic hardship, pending predevelopment administrative review, as well as for properties subject to probate.  All would pay the $250 registration fee.

Doesn't Pay to Keep Property Vacant

The Washington Business Journal reports today that Mayor Fenty is on board with a system of steep graduated registration fees for vacant houses and commercial properties in the District:

The existing vacant property registration fee is $20 per residential unit or $20 per 400 square feet of commercial space. Fenty proposes to charge $250 the first year, $500 for the first renewal year, $1,000 the second, $2,500 the third and $5,000 the fourth.

According to a District spokesperson, the revenue from the fees will provide more resources for the District’s nuisance abatement program, such as site visits for enforcement purposes.

The new registration fees would replace the prior vacant property tax, which the D.C. Council abandoned after it had doubled the tax from $5 to $10 of every $100 of assessed value.  The quick and substantial increase in the tax, elimination of frequently abused exemptions, and more consistent enforcement by the Department of Consumer and Regulatory Affairs led to an outcry that led to its repeal.  The $10 tax now applies only to "blighted" properties, and very few properties meet the criteria.

“It’s really just to spur people to put their properties back into productive use,” said City Administrator Neil Albert. “It is a graduated schedule of fees that should provide the incentive not to have their properties sitting around gathering dust.”

It's not just dust.  Vacant properties are also a significant public safety issue, and particularly so when vacant they become concentrated in an area.  Even when properly maintained, when a property is vacant it means less eyes on the streets... more muggings, more shattered car windows, more loitering, more prostitution, and less people to call police and report when someone is in trouble.  It also tends to mean that the neighbors are left to pick up accumulating trash, deal with illegal dumping, and shovel the snow.

At this point, the proposed registration fees are not law -- rather, revenue estimates from the fees are included in Mayor Fenty's 2011 budget.  I testified in late January at a hearing on the legislation proposed by Councilmember Bowser that adopts this approach.
 
The old system was working -- and by that I mean the $5 tax with consistent DCRA enforcement. There was a need to eliminate frequently abused exceptions -- the ability to put up a "for sale" sign or take out a work permit to avoid the tax entirely.  The sudden doubling of the tax, and rare situations where it was mistakenly put on an occupied properly and the error not quickly and fairly addressed, led to its demise.
 
Whether the new approach will work will depend on DCRA's ability to enforce the registration requirement as well as any loopholes in the law.  For instance, if an owner can reset the graduated fees simply by showing a water or utility bill for a month or two on the property, the fee will not provide much of an incentive.  DCRA will need to be able to impose the fee if an owner does not voluntarily register the property.  Would there be a penalty for failure to register? 

It is also important to note that the current proposal does not include vacant lots -- only vacant "improved" properties, such as houses or commercial buildings. 

The law will need to recognize some legitimate situations in which it would be unfair to impose a registration fee, such as deployment in the military or long-term medical/nursing care.

Vacant or Blighted - Part II

Near northeast resident Tom Madison displays before-and-after photos of a dozen vacant properties fixed after imposition of the higher tax.

In 2009, the D.C. Council eliminated the vacant property tax, which had provided an incentive to renovate, rent, or sell vacant properties and put them back into productive use. This was a result of the interaction of several factors: (1) backlash after the D.C. Council voted to double the tax from $5 to $10; (2) more consistent enforcement of the law by the DCRA; (3) the occasional innocent owner unfairly getting hit with the higher tax; and (4) the recession and its impact on developers with properties awaiting financing and smaller owners that lacked funds to undertake renovation plans.

On January 27, the DC Council's Committee on Public Services and Consumer Affairs and Committee on Finance and Revenue held a hearing to discuss how the government should address vacant and blighted properties in the future.

Two bills are currently pending before the Council. B18-546, introduced by Councilmember Muriel Bowser, would keep the vacant property registration system, eliminate exemptions (which now apply only to the need to pay a nominal registration fee), provide for an upward sliding scale for registration fee depending on amount of time property is vacant (likely beginning at about $500 and increasing to a maximum of $5,000 per year), simplify the citation issuance process, and require property insurance for vacant properties. The bill is helpful, but not ideal.

B18-448, introduced by Councilmember Jack Evans, would eliminate the remaining vacant property registration system altogether and focus only on blighted determination. It would discard all of the good work of the DCRA over the past few years to compile an accurate list of vacant properties, as well as residents and community associations that have worked hand-in-hand with DCRA. Even without a vacant property tax, this list allows DCRA to closely monitor these properties for violations (litter/dumping, overgrown grass, unsecured, illegal billboards, as well as criminal activity) and determine whether they are "blighted."

Rather than a consisting of a handful of neighborhood activists, development-types, and DCRA officials, the hearing was standing room only.  Testimony lasted over six hours with quite a few fireworks as passions were high on both sides.

Tom Madison, representing the Capitol Hill North Neighborhood Association, came prepared with a dozen before-and-after photos of properties in his near northeast neighborhood that had been renovated and are now occupied as a direct result of imposition of the higher tax.  Madison was immediately followed by David Shames, a lender, who began his testimony, "you can't tax a property into good condition, can you?" and challenged those who say vacant properties have an adverse impact on the surrounding community.  As Shames did so, his neighbor on the panel, Madison, waved his photographs in the air.  [Video of Hearing]

For those who wonder if there is a significant difference between what properties are included in the definition of "vacant" and the definition of "blighted," consider the statistics below, provided in DCRA Director Linda Argo's prepared testimony:

Ward		Vacant Properties	“Blighted” Properties	Percentage of Vacant Properties that are “Blighted”
1		327	25	7.6%
2		187	5	2.7%
3 4		67 282	1 9	1.5% 3.2%
5		362	25	6.9%
6		340	7	2.1%
7		561	13	2.3%
8		322	17	5.3%
TOTAL		2,448	102	4.2%

That's 2,346 absentee owners, many (or most) who do not even live in the District of Columbia, who received a massive tax break this year when their property tax went down from $10 per $100 value to just 85 cents.  [Note: These statistics likely include only vacant buildings, not vacant lots].  You can view a map of the vacant and blighted properties in your Ward, as identified by DCRA, below (click for full size maps).

The Council should adopt a vacant/blighted property system along these lines:

1. Retain the vacant property registration system;
2. Restore a higher tax applicable to vacant property (possibly at the prior $5 level);
3. Provide for graduated increases in the tax the longer the property remains vacant (i.e. increasing progressively as high as $10 if a property is vacant for 10 or more years);
4. Apply the vacant property tax to both vacant lots (unimproved land) and vacant houses and commercial buildings (improved land);
5. Provide for limited, objective exceptions, such as (a) when a property is in probate, (b) within one year of purchase (to not discourage buying and renovating properties subject to the tax), (c) when the owner is serving in the military, and (d) when the owner is in long-term care due to age or a medical condition. Frequently abused exceptions, such those that permitted owners to evade the tax by placing a “for sale” sign on the property (while demanding above-market prices and refusing / ignoring offers), or by obtaining permits for nominal work, should not be incorporated into the new law;
6. Continue to address “blighted” properties through DCRA’s aggressive use of currently available fines (i.e. for dumping, overgrown grass, or unsecured property) and the condemnation process (for unsafe and insanitary properties); and
7. Provide an expedited appeal and refund system for property owners who are inadvertently charged the higher rate.

If the Council deems a vacant property tax undesirable in the current recession, particularly with respect to substantial projects that await financing, then it might consider the measures above along with a one-year moratorium on the tax for 2010 applicable to specific development zones that could be extended by the Council if absolutely necessary.

Here are seven reasons why the vacant property tax should be restored.