62
Omaha Municipal Land Bank
1905 Harney Street, Suite 224 Omaha, NE 68102
www.omahalandbank.org
Facebook: www.facebook.com/omahalandbank LinkedIn: www.linkedin.com/company/omahalandbank/ Instagram: www.instagram.com/omahalandbank/
Shannon Snow
Executive Director
grants@omlb.org
+1 (402) 800-1235
Yes
Shannon Snow, Executive Director Deana Walocha, In-House Counsel Andrea Purdy-Steenholdt, Director of Operations Carisma Jano, Legal Assistant
The Land Bank currently employs four full-time staff: Executive Director, In-House Counsel, Director of Operations, and a Legal Assistant. The Executive Director and staff work under the supervision of a Board of Directors, which consists of seven voting members and additional nonvoting members all appointed by the Mayor of Omaha. A copy of our organizational chart is attached.
The Omaha Municipal Land Bank is the only land bank in the state of Nebraska today. Our programs, services, and statutory abilities are what differentiate the Land Bank from traditional real estate organizations. Under the Nebraska Municipal Land Bank Act, land banks have the unique ability to acquire property, extinguish any title encumbrances, and dispose of them for redevelopment. The Omaha Municipal Land Bank (OMLB)is a local, governmental, nonprofit organization that acquires, maintains, and sells vacant and distressed properties for productive use. Each year, the Land Bank maintains an average of 300 vacant properties in Omaha. Several of these properties are located in Omaha’s most underserved neighborhoods. Vacant, abandoned, and dilapidated properties result in an increase of violent crime, safety and health hazards, and depressed property values. By acquiring, maintaining, and selling these properties for strategic reuse, the OMLB is able to support long-term community redevelopment in Omaha. The Land Bank’s disposition priorities ensure that properties are sold for the highest and best use. In 2021, the Land Bank updated its polices to include prioritizing the sale of properties in historically redlined areas to residents within that community. Under this policy, the Land Bank can help ensure that residents in historically redlined communities are given the opportunity to build generational wealth through purchasing a property. The Omaha Land Bank was the first in the country to have this type of priority, and it has established itself as a national leader in diversity, equity, and inclusion. The policy itself serves as an example for other communities to incorporate generational wealth-building priorities into their processes. In October, the Land Bank board is expected to pass updated policies that will further solidify this commitment to empowering development and promoting generational wealth. This new policy prioritizes neighbors and includes language that applies to South Omaha residents. In 2021, the Land Bank sold 66 properties to buyers who had plans to expand property lines (24% of dispositions), create community spaces (13%), build new housing (38%), or build a new business (7.5%). Side lots, which are unbuildable lots, comprised 9.2% of property sales in 2021. In the upcoming years, the OMLB will continue focusing its efforts on acquiring, maintaining and selling distressed properties.
Lot Acquisition and Preparation
2400000.0
2400000.0
Capital project
Each year the Land Bank maintains approximately 350 properties, most of which are available for purchase. Currently, there are 202 buildable lots available, but only 75 are ready for development today. Additionally, there is a general lack of availability of assembled properties for the development of multiple-units, infill development becomes challenging. Development efficiencies are gained when a buyer can construct multiple units in one area, and it is often these efficiencies that assist the development in becoming cost-effective and profitable for the developer, generating opportunities for stable housing and generational wealth building in North Omaha. The Land Bank has 90 properties on blocks that present opportunities for land assembly in North Omaha. In South Omaha, the challenge is slightly different. The number of properties with delinquent taxes is much smaller, resulting in a smaller amount of inventory held by the Land Bank. Although these properties do not suffer from the tax delinquency, preliminary assessments have identified that vacancy and abandonment is a challenge in South Omaha, and as a result the Land Bank would need to acquire vacant properties via purchase to clear the code violations and return them to the market. Additionally, our lots come with challenges. Significant grades, infrastructure availability, overgrown trees and crumbling historic foundations represent only a few issues that make construction complicated to even experienced developers. When this is combined with lending challenges, it becomes difficult to dispose of property, especially to neighborhood developers and residents within the historically redlined community, as identified in the attached Land Bank Disposition Policy. Due to the amount of property owned by the Land Bank and our ability to leverage governmental and philanthropic funding, we are uniquely positioned to assemble lots and conduct preliminary site preparation of to create “shovel-ready” sites- to help offset these significant development costs and increase the pool of buyers who are qualified to purchase Land Bank property. The Land Bank has identified 20 properties that could be buildable if there were some sort of investment made on them, such as clearing trees, replating, changing zoning, etc. We estimate with a total investment of $1,000,000 could return 20 of these lots to the market. Additionally, the Land Bank plans to invest $500,000 in both North Omaha for the acquisition of properties that would allow for the development of multiple units and $500,000 in property acquisition in South Omaha for properties outside of redevelopment focus areas that require Land Bank intervention (i.e., clearing title encumbrances or leveraging governmental/donor funding to bring properties up to code) to lower the cost of investment in returning these properties to the market. An additional $400,000 is being requested for site engineering and other soft costs. It should be noted that if the committee recommends this proposal to the Legislature for approval, the Land Bank intends to hire Lamp Rynearson to conduct a preliminary site assessment to validate this request, identify acquisition priorities, and conduct stakeholder outreach, prior to the receipt of funds. Funds for this initial assessment are not included in this request.
• Winter 2023—Property Acquisition Begins • Spring 2024—Assessment of Properties Acquired • Fall 2024—Property Investments Made o This will include utilizing grant funding or CBDG funds to bring properties up to code o Conduct RFP search for contractors • Winter 2024—Properties listed for sale and marketing
1.0
Fundamental Change (i.e., a proposal that will continue to elevate North or South Omaha's presence and perception within the region, significantly improving the lives of area residents through physical development) Long-Lasting Economic Growth (i.e., a proposal that will foster gainful employment opportunities and financial investment in the area, leading to the creation of generational wealth and widespread economic vitality in North and South Omaha) Transformational (i.e., a proposal that will help energize, recharge, or spur significant and favorable advancements in North or South Omaha's function or appearance)
Other Infrastructure (i.e., develop or improve broadband, business districts, roadways, sewer, etc.) Policy (i.e., develop or improve context-sensitive education, finance, health, training, zoning, etc.) Quality of Life (i.e., create or enhance natural spaces, mixed uses, parks, safety, etc.) Sustainable Community (i.e., create or enhance housing, services, education, civic uses, recreation, etc.)
Vacant and abandoned properties pose serious mental and physical health challenges for neighboring residents. Research has shown that residents who live near vacant or abandoned properties have reported feelings of fear and unsafety triggered by illegal dumping, wild animals that are drawn to these sites, and the risk of fire hazards (Hollstein, L.M., 2014). Other studies have found that deteriorating neighborhoods have shown higher rates of death caused by homicide, cardiovascular disease, and other severe health issues (Leon and Schilling, 2017). The Omaha Land Bank serves the entire city of Omaha; however, we are highly invested in North and South Omaha neighborhoods and areas where vacant lots are prevalent. Each year the Land Bank serves an average of 200 clients that consists of property owners, residents, developers, community members, or non-profit organizations. At present, 90% of Land Bank lots are located in North and South Omaha. According to data from Douglas County’s GIS department, about 59% of properties with active demolition orders are in City Council District 2 (North Omaha), making it the city council district with the highest percentage of distressed properties. According to the U.S. Census, 50.44% of residents in Legislative District 11 (North Omaha) are Black, 23.41% are White, 15.92% are Hispanic, 1.74% are Native American, and 6.16% are Asian. In District 13 (North Omaha), 28.69% residents are Black, 47.63% are White, 9% are Hispanics, and 11% are either Native American or Asian. In Legislative District 5 (South Omaha), 52.06% of residents are White, 6.45% are Black, 43.98% are Hispanic, 2.50% are Native American, and1.40% are Asian. North Omaha is an area that has one of the highest rates of low-income households and unemployment in the state of Nebraska. By intentionally acquiring and selling distressed properties in areas where vacant lots are most prevalent, the Land Bank is able to promote positive redevelopment and build generational wealth in Omaha’s most underserved communities.
According to the findings identified in the Visioning Workshop Summary, North and South Omaha’s greatest needs emphasize the lack of infrastructure, the need for development that fits within the cultural context, and the need to access community resources. Based on public comments on the North Omaha SWOT analysis, community members identified the prevalence of vacant properties as a threat and a cause for the gap in development. The acquisition and preparation of vacant parcels in North and South Omaha neighborhoods aligns with the above needs and will aim to address community needs outlined in the Visioning Workshop Findings. By acquiring vacant and abandoned property, the Land Bank is able to clear title encumbrances, maintain these properties for the betterment of the neighborhoods, and sell them for productive and positive use. The Land Bank’s strategic acquisition and disposition process allows it to remove vacant and distressed properties and transform them into positive community assets by selling them to qualified buyers who have plans for redevelopment.
This proposal aligns with LB1024’s strategic priorities outlined in Section 4, which includes eligible grantees in qualified census tracts and public or private entities that are working to prepare land parcels for affordable housing projects. The acquisition and lot preparation of vacant lots in North and South Omaha neighborhoods directly aligns with LB 1024’s priorities to increase opportunities for affordable housing in the Qualified Census Tracts. This proposal aims to acquire vacant lots in North and South Omaha areas. It will further aim to prepare these acquired parcels to create construction-ready sites for potential new affordable housing units.
Due to several unknown factors (i.e., number of construction sites, buildable parcels, etc.), the number of jobs that could result from this redevelopment project is hard to predict. However, reports have consistently shown that new development projects often lead to increased employment opportunities. According to a report by the Santa Clarita Valley Economic Development Corporation, jobs in the construction sector increased by over 800 positions due to the amount of development projects underway. Another study by the National Association of Home Builders found that construction of 1,000 average single-family homes results in 2,900 full-time jobs. According to Intuit, the average annual salary for a construction worker in Omaha sits at $37,500.
0
The number of temporary or construction jobs is difficult to predict during these preliminary stages. We estimate 80 new potential housing units followed by the completion of necessary acquisition and lot preparation and improvements to surrounding infrastructure. We estimate 30 potential construction jobs that will result from this project. In addition, the Land Bank will seek to expand its current pool of maintenance vendors to maintain these lots while we search for qualified buyers. We estimate hiring an additional 10-15 local maintenance vendors. Under its current policies, the Land Bank will follow its normal RFP procedures when selecting contractors to conduct the proposed plans for this project. Our procurement policy prioritizes spending amongst local and small businesses. Temporary or new construction jobs will most likely result from the construction of new housing projects that will take place after the sale of these properties. According to a 2020 study by the NAHB, an average of 24 different subcontractors are used to build a single-family home.
According to Intuit, a construction worker in Omaha makes an annual average salary of $37,500. Our current property maintenance vendors are paid an average of $1063 per month for lots maintained.
The Land Bank’s purchasing policy mirrors the City of Omaha’s Tier 1 and Tier 2 SEB (Small Emerging Business Program). This policy prioritizes the Land Bank’s spending amongst local and small business vendors. In 2021, the Land Bank invested $88,206 and supported economic growth in Omaha by hiring 10 local maintenance vendors. All of our property maintenance vendors possess strong connections to the community. Following the acquisition of these properties, the Land Bank will seek to hire additional local maintenance vendors to maintain these lots while they are awaiting sale. The Land Bank will follow its normal RFQ procedures as outlined in its Procurement Policy when selecting any needed services for this redevelopment project. However, the sale of properties to historically redlined residents or residents in QCTs is prioritized under our disposition policy. We believe prioritizing the sale of these properties to residents in these areas would provide ongoing opportunities for employment, new housing, and generational wealth building.
This proposal will aim transform the vacant and distressed properties in North and South Omaha neighborhoods into construction-ready sites for at least 20 new housing units. An additional 60 units will result from the Land Bank’s concentrated effort in acquiring property adjacent to parcels we own or needing Land Bank intervention and making those properties available to the market. In addition, this redevelopment project will aim to improve or build any necessary surrounding infrastructure to increase accessibility to the areas in which these lots are located. Lot preparation will involve the clearing of trees, grading, new infrastructure, and necessary rezoning or replats to create construction-ready sites. The successful redevelopment of this area will result in increased of housing opportunities and improved neighborhood environments. The availability of housing will most likely attract residents to neighborhoods and increase the overall livability in North and South Omaha areas.
This proposal aims to revitalize and support redevelopment in the North and South Omaha neighborhoods by acquiring and transforming the use of vacant and distressed properties in the area into new housing opportunities. By clearing the trees and other property encumbrances in nearly 20 distressed lots, this proposal contributes to promoting clean and safe neighborhood environments. Vacant and distressed properties result in increased crime rates, depressed property values, and pose serious mental and physical health risks for residents. Transforming these parcels into construction-ready sites for potential new housing contributes to building sustainable communities in Omaha.
The Great Lakes Environmental Finance Center identified nine long-term best practices for land banks and redevelopment authorities in a nationwide study. The OMLB uses the majority of these practices, including (1) A narrow focus on the goals and objectives for vacant land reutilization. The OMLB is currently focusing on mastering its core functions: acquiring, maintaining, and disposing of property. We are not financiers or developers. (2) Employ an integrated management information system containing parcel-specific information. The OMLB utilizes ePropertyPlus, an online database, to manage properties through every step of the foreclosure, acquisition, maintenance, and disposition process. (3) Coordinate city-wide strategic vision integrated with land bank planning. The OMLB works with the City of Omaha, MAPA, and Spark CDI to align property revitalization with ongoing initiatives. (4) Clearly define the terms and conditions for the sale of properties. To purchase and close on a property from the OMLB, all buyers must demonstrate that they have secured the needed funding and have obtained building permits from the City of Omaha to conduct construction. The OMLB uses special warranty deeds to ensure completed development aligns with approved plans. (5) Pursue funding streams that are diverse, innovative, and flexible. The OMLB gains revenue through property sales, tax lien investments, grant funding, and tax recapture on sold properties.
The Land Bank will utilize the following to measure the success and outcomes of this project. • Acquisition of at least 30 vacant parcels in North Omaha Redevelopment Areas • Acquisition of 20 vacant parcels in South Omaha • Lot preparation of 20 Land-Bank owned parcels to create construction-ready sites • Developed roads, improved surrounding infrastructure and accessibility to these parcels • Sale of 30% of properties to residents of historically redlined neighborhoods or residents of areas with 80% AMI.
The above outcomes will be measured by the Land Bank and its partners in this project. The Land Bank will measure lot preparation based on the successful clearing of trees, removal of trash and debris, grading, rezoning, establishment of new infrastructure, and all other necessary steps required to create construction ready sites. It will further measure outcomes based on the number of vacant parcels acquired in North and South Omaha neighborhoods.
Yes. The Land Bank intends to sell the lots to qualified buyers, developers, or community members who have plans to build new housing projects.
Yes
If granted funds under LB1024, the Land Bank would work closely with partners like NIFA and Habitat for Humanity to find opportunities to ensure the funding of structures on the site.
The Land Bank is active conversations with NIFA and Habitat for Humanity regarding this proposal.
No
The acquisition of properties will primarily occur in North and South Omaha areas. A site analysis study will need to be conducted to identify key property acquisition areas in North and South Omaha. We anticipate acquiring around 30 vacant parcels in North Omaha, 20 parcels in South Omaha, and conducting lot preparation of 20 Land Bank owned parcels.
Within one or more QCTs
Yes
No
Yes
No
No
No
Based on the Land Bank’s current inventory, it can cost up to $1 million to adequately create construction-ready sites for properties with significant encumbrances. Additional funding of 20% of the total project cost is required for engineering and other soft costs, such as project management, associated with this project. Prior to accepting funds, the Land Bank will need to conduct a needs analysis on the South Omaha area in order to identify areas for property acquisition and verify infrastructure costs. The Land Bank intends to work with Lamp Rynearson to conduct these assessments.
LB 1024 grant funds will be used specifically to conduct site assessment of key property acquisition areas and land parcel preparation for new housing sites. Funds will be used to acquire properties in North and South Omaha, which will include but is not limited to the following: • Site assessment of key property acquisition areas in South Omaha • Site assessment of property acquisition areas North Omaha Redevelopment Areas • Property acquisition of at approximately 50 vacant parcels in North and South Omaha areas • Lot preparation of 20 Land Bank owned parcels to create construction-ready sites for new housing • New or improved infrastructure in the surrounding area (i.e., developed roads, sewer, utilities) of vacant parcels
Yes
Following the preparation of the identified parcels and the surrounding infrastructure, the Land Bank intends to sell the properties for new housing projects. The Land Bank will then re-invest the proceeds from these property sales into its land acquisition or lot preparation program.
Currently, the Land Bank does not have other funding sources available for this development. However, if granted funds under LB1024 the Land Bank would work closely with partners like NIFA and Habitat for Humanity to find opportunities to ensure the funding of structures on the site.
No
Yes.
The scalability of this project would depend on available funding.
The Land Bank does not have funds secured for this project, however, we have the internal staff and systems to appropriately monitor and report on grant funds received. The Land Bank has the legal resources necessary to clear any title encumbrances on additional vacant properties it acquires. It has the internal resources and staff needed to oversee the marketing and sale of the properties after completion. It may explore hiring additional staff such as an owner’s representation firm or a project manager to provide additional oversight on projects conducted in the area.
1.0
1.0
1.0
1.0
Organizational Chart Plans and detailed descriptions, including pictures and a map of the site location/surrounding area Proposal Budget/Sources and Uses