Presented by Julie Day, Esq. and Blair Griffith, Esq., Baltimore Ctiy Code Enforcement, Legal Section, September 24, 2007

1. Baltimore’s Receivership Program
Reclaiming Vacant Properties
Pittsburgh Conference
September 24, 2007
Presented by: Julie Day, Esq. and Blair Griffith, Esq.
Code Enforcement Legal Section
For additional information or questions contact:
Blair.Griffith@Baltimorecity.gov
410-396-4140
www.baltimorehousing.org

4. GIS technology is utilized
in planning and selection

5. Receivership
The Baltimore City Receivership process is
in the City’s Building, Fire and Related Codes
Section 121
Baltimore Codes are available online at:
http://cityservices.baltimorecity.gov/charterandcodes/

6. Baltimore’s Receiver
can Rehabilitate
Sign contracts, borrow money using
receiver’s lien as security
Manage the property after
rehabilitation for up to 2 years,
applying any rent to retire costs
of rehabilitation
Foreclose on receiver’s lien or
accept a deed in lieu of
foreclosure

7. or transfer the property
private sale if at fair market value and all
secured interests agree
or
public auction - publicly noticed, with
bidders pre-screened for ability to
rehabilitate in timely manner

8. Property owners can defend by:
a. Proving present ability to
complete the razing or
rehabilitation within a reasonable
time,
b. agreeing to comply with a
specified schedule for razing or
rehabilitation, and
c. posting bond, in an amount
determined by the Court, as
security for performance of the
required work in compliance with
the specified schedule.

9. As nuisance abatement, it is
not a governmental taking
Receivership has long been recognized as a
valid governmental exercise of police power
in the abatement of public nuisance.
Mugler v. Kansas, 123 U.S. 623 (1887)

10. Can quickly address and
remedy nuisance properties
.
In Baltimore, properties statutorily defined
as vacant are deemed nuisances per se.
Designation as a nuisance per se
recognizes the vacant building as…
(Building, Fire and Related Codes of Baltimore City (2003) §115.4)c

11. a fire hazard

12. structurally
de-stabilizing
surrounding
buildings

13. Neighborhoods are supported,
community involvement strengthened
negatively impacting neighborhood
property values and overall quality of life

14. a repository for
trash
and
graffiti

15. Control of property quickly
moves to third-party
developer
Baltimore’s Code was amended earlier this year
to include vacant commercial structures

16. Versatility - utilized flexibly – commonly
owned properties, targeted blocks or
houses
Target individual
vacant properties
in strong
neighborhoods
(before…)

17. After

18. Clustered in neighborhoods
on the brink of renaissance
five adjacent fire-damaged brownstones

19. Frees municipal acquisition
dollars for other uses
become a cleared site for new in-fill construction

20. or commonly owned vacants
five in the same neighborhood
owned by one person

21. Collects governmental liens
and costs
Transferred to new
owners and recovered
over $41,000 in liens,
costs and fees
Result Total $ to gov't
2313 Callow Ave $138,000.00 $7,955.66
1708 Druid Hill Ave $19,000.00 $2,365.19
1039 W. Lanvale Ave $33,000.00 $2,575.30
1917 McCulloh St $80,000.00 $3,477.00
912 Newington Ave $135,000.00 $17,515.95
924 Newington Ave $113,000.00 $7,761.68
$518,000.00 $41,650.07

22. Facilitates public and
private sector cooperation

23. Auctions Today
Monday, September 24, 2007
Court Agent & Receiver's Auctions To The Highest Bidders
7 Baltimore City Homes Requiring Renovation
10:00 A.M.: 3701 Centre Place - Two Story Townhome
"Highlandtown" - Baltimore, MD 21224
Pre-Qualification is required for the following properties.
Application Deadline: Mon., Sept. 17, 2007
10:45 A.M. 502 N. Curley Street - Two Story Townhome
"Ellwood Park" - Baltimore, MD 21205
11:15 A.M. 1217 N. Luzerne Avenue - Two Story Townhome "Berea" -
Baltimore, MD 21213
11:45 A.M. 404 E. Federal Street - Two Story Townhome
"Greenmount West" - Baltimore, MD 21202
12:20 P.M. 611 Montpelier Street - Two Story Victorian Home "Better Waverly" -
Baltimore, MD 21218
1:00 P.M. 403 Presstman Street - Two Story Townhome
"Druid Heights" - Baltimore, MD 21217
1:15 P.M. 2020 Division Street - Two Story Townhome
"Upton" - Baltimore, MD 21217(

24. Timeframe from referral
to transfer
Day 1 = Referral for receivership
Day 45 = Receive Title Work
Day 60 = Notice of Filing
Day 120 = Petition Served/Court Hearing
Receiver Appointment
Day 160 = Auction
Day 190 = Sale Ratified
Day 240 = Transfer to new
owner

25. Progress to date
34 completed receiverships
Over $1.9 million total sale proceeds
$368,000 in city liens and gov’t fees recovered
28 open receiverships
8 auctions = additional $999,000 in proceeds
7 auctions scheduled for September 24, 2007

26. $1,611,063
$304,097
Total
Gov't $
$368,130
$29,603
$24,266
$10,162
City Tax/Stamps Municipal Liens
State Tax/Stamps State Transfer Tax

27. Unexpected surprises:
Owners resolve housing code violations
and pull permits to be able to participate
in receivership auctions
Owners consent to receivership, some
with a specified stay of the receiver’s
actions
Creation of recognized “comparative sale
values” utilizing auction prices to help
stabilize market

28. More unexpected surprises:
Number of dead people holding title
Auction sale price less than government
liens on property
Successful bidder becomes another
receivership candidate

29. Top 10 Reasons Baltimore
Recommends Receiverships
1. As nuisance abatement it is not a governmental taking
2. Can quickly address and remedy nuisance properties
3. Neighborhoods are supported and community involvement strengthened
4. Control of property quickly moves to third-party developer
5. Versatility - utilized flexibly – commonly owned properties, targeted blocks
6. Frees municipal acquisition dollars for other uses
7. Collects governmental liens and costs through sale proceeds
8. Facilitates public and private sector cooperation
9. Can be utilized collaboratively with municipal acquisition
10. Assists in transferring dead people’s property

30. Sheila Dixon,
Mayor