Post
by FangKC » Sat Jan 24, 2015 12:46 am
Well, I'm also disappointed in the policy of the land bank encouraging people to buy adjacent vacant parcels to expand their yards, because the lots are "narrow," instead of putting together a plan to redevelop the lots with new houses, and rebuilding population density in KCMO south of the river.
There are plenty of narrow house designs that could fit on these lots, and if the the City could do more to embrace and encourage more prefab houses being placed on vacant lots. Prefab houses are cheaper to build, and can be assembled on site in a few days instead of a couple of months, or more, that a custom house requires.
It's more than just filling lots. We are talking about city revenue. A lot with a new house on it brings in more property taxes than a vacant side-lot. The residents of infill house bring in more sales and earning taxes. In addition, rebuilding population in older neighborhoods supports existing retail, and attract retail back to areas where it's been abandoned. Many areas of the City don't have a grocery store nearby, and the reason for that is that grocery store chains won't open, or operate, stores in neighborhoods where the population density has dropped too low.
For example, it might be in the City's interest long-term to give the vacant lots away to owners who intend to erect a new house on them. The land transfer would be contingent on the prospective property owner having cash money to build, financing, and a house design submitted with a date-of-completion plan. The City could also give the property owner a 10-year property tax abatement on the lot, and improved house.
Another thing the City could do is work with HUD to organize lenders that will help finance these new houses.
HUD already works with certain lenders like US Bank to provide financing for low-income residents buying their first homes, and there are no restrictions in what neighborhood one can buy. Thus, there is no red-lining where one can get a loan in certain neighborhoods--like east of Troost. The City also already gives a limited number of homeowner down payment grants each year through the Kansas City Dream Home program, to buy existing houses. Why couldn't they extend the same grant program to residents erecting a new house on a land bank lot?
I know the Dream Home program isn't going to get a lot of houses built. However, if the City worked with HUD, and say US Bank, to make lending available for new home construction in older parts of the city where most of these land bank lots are, it would make a tremendous difference. The program should also include renovation loans so residents can purchase abandoned houses in the land bank that can be feasibly renovated.
