Agenda - Council Work Session - 03/08/2022

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4374 Federal Register/Vol. 87, No. 18/Thursday, January 27, 2022/Rules and Regulations neighborhood environments to public properties may be in significant Treasury presumes that demolition of health and economic outcomes. disrepair(e.g.,major structural defects; vacant or abandoned residential Treasury agrees with commenters that lack of weather tight conditions; or lack properties that results in a net reduction high rates of vacant or abandoned of useable plumbing,kitchen facilities, in occupiable housing units for low-and properties in a neighborhood may electricity, or heating infrastructure (not moderate-income individuals in an area exacerbate public health disparities,for to include utilities currently out of where the availability of such housing is example through environmental service or disconnected but able to be lower than the need for such housing contaminants that contribute to poor reconnected and used)), or may be would exacerbate the impacts of the health outcomes or by contributing to declared unfit for inhabitants by a pandemic on disproportionately higher rates of crime.As such, certain government authority. impacted communities and that use of services for vacant or abandoned As noted above, demolition and SLFRF funds for such activities would properties are eligible to address the greening(or other structure or lot therefore be ineligible. This includes public health and negative economic remediation) of vacant or abandoned activities that convert occupiable impacts of the pandemic on properties,including residential, housing units for low-and moderate- disproportionately impacted households commercial, or industrial buildings,is income individuals into housing units or communities.Eligible activities an eligible use of funds. Treasury unaffordable to current residents in the include: encourages recipients to undertake these community. Recipients may assess • Rehabilitation,renovation, activities as part of a strategy for whether units are "occupiable" and maintenance,or costs to secure vacant neighborhood revitalization and to what the housing need is for a given or abandoned properties to reduce their consider how the cleared property will area taking into account vacancy rates negative impact be used to benefit the disproportionately (as described above),local housing • Costs associated with acquiring and impacted community.Activities under market conditions (including conditions securing legal title of vacant or this eligible use should benefit current for different types of housing like multi- abandoned properties and other costs to residents and businesses,who family or single-family),and applicable position the property for current or experienced the pandemics impact on law and housing codes as to what units future productive use the community. are occupiable.Recipients should also • Removal and remediation of Treasury encourages recipients to be take all reasonable steps to minimize the environmental contaminants or hazards aware of potential impacts of demolition displacement of persons due to from vacant or abandoned properties, of vacant or abandoned residential activities under this eligible use when conducted in compliance with properties.Demolition activities that category, especially the displacement of applicable environmental laws or exacerbate the pandemics impact on low-income households or longtime ff f k l i i h regulations housing insecurity or lack o affordable g residents. • Demolition or deconstruction of housing are not eligible uses of funds. Recipients engaging in these activities vacant or abandoned buildings This risk is generally more acute in and other construction activities with (including residential, commercial,or jurisdictions with low or reasonable SLFRF funds should be mindful of the industrial buildings)paired with vacancy rates and less acute in provisions of the Uniform Relocation greening or other lot improvement as jurisdictions with high or hyper- Assistance and Real Property part of a strategy for neighborhood vacancy.203 p y revitalization Acquisition Policies Act of 1970,as amended,42 U.S.C.4601,and the • Greening or cleanup of vacant lots, overview/#overview-of-the-ura(last visited as well as other efforts to make vacant November 9,2021)and other state and local Department of Transportation's requirements like condemnation and code implementing regulations,49 CFR part lots safer for the surrounding enforcement.U.S.Department of Housing and 24,that apply to projects funded with community Urban Development,What is the definition of • Conversion of vacant or abandoned vacant properties as referenced in NSP Eligible Use federal financial assistance,such as properties to affordable housing E—Redevelop Demolished or Vacant Properties? SLFRF funds.Recipients should also be • Inspection fees and other (October 2012),https://www.hudexchange.infol aware of federal, state,and local laws fags/programs/neighborhood-stabilization-program- and regulations,outside of SLFRF administrative costs incurred to ensure nsp/redevelopment/what-is-the-definition-of- requirements,that apply to this compliance with applicable va can t-properties-as-referenced-in-nsp-eligible/. program q pp y environmental laws and regulations for U.S.Department of Housing and Urban activity.Recipients must comply with Development,What are the definitions of the applicable requirements of the demolition,greening,or other abandoned and foreclosed?(October 2012),https:// Uniform Guidance regarding remediation activities www.hudexchange.info/fags/programs/ g g procurement,contracting, and conflicts Vacant or abandoned properties are neighborhood-stabilization-program-nsp/program- generally those that have been requirements/eligible-activitiesuses/what-are-the- of interest and must follow the definitions-of-abandoned-and foreclosed/. applicable laws and regulations in their unoccupied for an extended period of PP g time or have no active owner.202 Such 203 For analysis of vacancy rates considered low jurisdictions.Recipients must also or high,see,e.g.,page 12 of Alan Mallach,The comply with all federal,state,and local Empty House Next Door,Lincoln Institute(May 202 A state or locality may use its existing 2018),https://www.lincolninst.edu/publications/ public health and environmental laws classifications of what is considered vacant or policy focus-reports/empty-house-next-door# or regulations that apply to activities abandoned property under state law and local text=%E2%80%9CAlan%20Mallach%20is%20 under this eligible use category,204 for ordinances,as well as any corresponding processes the%20sage,through%20data%20and%20 example,requirements around the for demolition,for these eligible uses.A recipient model/020 practices.Recipients may determine the without a definition of vacant or abandoned appropriate geographic unit for which to analyze property may refer to definitions used in the vacancy rates(e.g.,county,census tract)based on based on United States Postal Service Vacancy Data. Department of Housing and Urban Development's their circumstances.As needed,recipients may See,respectively,https://data.census.govlcedscil Neighborhood Stabilization Program(available at refer to the Current Population Survey/Housing table?q=DP04£rtid=ACSDP5Y2019.DP04£r the citations below);however,recipients should be Vacancy Survey data series on Housing Vacancies hidePreview=true or https://www.huduser.govl aware that other federal,state,or local requirements and Homeownership as one data source to assess portal/datasets/usps.html. may apply such as compliance with the Uniform vacancy rates.See https://www.census.gov/housing/ 204 See U.S.Environmental Protection Agency, Relocation Act(see U.S.Department of Housing and hvs/index.html.Other data sources include the Large-Scale Residential Demolition,https:// Urban Development,Real Estate Acquisition and American Community Survey five-year estimates, www.epa.gov/large-scale-residential-demolition Relocation Overview in HUD Programs,https:// for smaller geographic areas,or tabulations by the (last visited November 9,2021)for a primer on www.hudexchange.info/programs/relocation/ Department of Housing and Urban Development requirements that may apply.