Vacant Lot Remediation in the United States and Europe

By Sarah Lee, Former Program Analyst, International and Philanthropic Affairs Division

Demographic shifts, deindustrialization, and disinvestment have resulted in high rates of abandoned and vacant properties and lots both domestically and abroad. In addition to the high costs to local governments to maintain them, vacant properties have been linked to higher rates of fires, harm to the mental health of neighborhood residents, and increased violent crime. Because research shows that vacant lots are concentrated in neighborhoods consisting predominantly of low-income minority residents, the fiscal and physical costs of blight also make vacant properties an equity issue.

Vacant lot remediation in the United States

States and localities have approached remediation in various ways. Strategies have included selling vacant city-owned properties to homebuyers as fixer-uppers for $1, starting "cleaning and greening" programs run by community volunteers, and transferring ownership to neighborhood residents as a means of grassroots preservation. Notable programs include the Large Lot Program in Chicago, the Fixed Pricing Program in Baltimore, and the LandCare Program in Philadelphia. Similar programs exist in Buffalo, Boston, New Orleans, Forest City, and Detroit, among others.

• Baltimore: Fixed Pricing Program

  The Baltimore Department of Housing and Community Development’s new Fixed Pricing Program acquires select vacant lots and properties and sells them to homebuyers for a fixed price with the condition that the buyer will rehabilitate the property. The Fixed Pricing Program is part of a historic plan to invest $3 billion over the next 15 years to remediate Baltimore’s vacant properties. More than 14,989 properties in the city lie vacant, and the city owns approximately 1,245 of them, which it is selling through the Fixed Pricing Program to encourage investment in the city’s less densely populated neighborhoods. Homeowners and community land trusts can purchase these vacant lots or buildings for a fixed price of $1. Applicants must have at least $90,000 available for property rehabilitation, and the homeowners must maintain their newly acquired property as their primary residence for at least 5 years. The Fixed Pricing Program was inspired by Baltimore’s Dollar House program in the 1970s, in which the city sold blighted properties for $1 and provided federally funded loans to aid their renovation. Grant programs such as the Vacants to Value Booster program exist to help Fixed Pricing Program recipients renovate their properties.

• Chicago: Large Lot Program

  Established in 2014 as an objective of Chicago’s $1.3 billion Five-Year Housing Plan, the Large Lot Program sought to convert vacant land to productive use by selling select city-owned parcels for $1 each. Applicants were required to own property on the same block as their desired lot, owe no debt to the city, and agree to maintain ownership of the lot for at least 5 years. The program restricted applicants to existing property owners on the same block to incentivize community investment, and applicants could purchase one or two vacant lots. The city did not impose any specific regulations about the use of the lot, which purchasers could use for community gardens, housing, beautification, or yard expansion so long as existing zoning regulations permitted the desired use. Since 2014, the city has sold and managed an estimated 1,800 lots through this program. A study evaluating the Large Lot Program using measures from vegetation to the built environment found that buyers made significant improvements to the lots 1 year after purchase and even more improvements the following year.

• Philadelphia: Pennsylvania Horticultural Society Philadelphia LandCare

  The Pennsylvania Horticultural Society has partnered with the city of Philadelphia to transform vacant lots into clean, green spaces. In addition to cleaning the vacant lot, the program plants greenery and manages the continued maintenance of the lot. Many of the lots are now public parks. To date, the Pennsylvania Horticultural Society has converted more than 13,000 lots into productive use. The program also contributes to local workforce development, because it hires and trains neighborhood residents and those who were formerly incarcerated to work on the lots.

  
  
  An example of a Philadelphia LandCare program lot. Photo credit: Pennsylvania Horticultural Society
  

  A study conducted by the Philadelphia Redevelopment Authority concluded that “homes within ¼ mile of a PHS greened lot increased in value by 2% to 5% annually — equal to $35,000 over five years — generating $100 million in additional annual property taxes” and estimated that “for each public dollar invested in the LandCare clean and green program, 7.43 dollars of tax revenues were returned.” Additional studies have found that residents living near LandCare lots experienced a 40 percent decrease in depression and a 29 percent decrease in gun violence.

Tackling systemic vacancies in Europe

The problems that vacant lots pose are not exclusive to the United States. Remote rural villages in Europe have been grappling with vacancies as rising numbers of younger residents move to urban areas and leave family properties behind. In a move similar to U.S. initiatives to sell vacant parcels for $1, 25 municipalities in Italy have been offering homes for €1. Although local regulations differ, most cities require buyers to renovate the derelict properties and conclude the work within a set period after purchase. In the United Kingdom, the city of Liverpool offered homes for £1 to 111 families through its Homes for a Pound program with the condition that the buyers do not sell their properties for at least 5 years. Saint-Amand-Montrond in France is currently taking applications for a two-level home that will be sold for €1.

Other European nations have been tackling the vacant lot problem more aggressively by offering to pay residents to move to remote villages. The tiny island of Antikythera in Greece has created a program to provide a financial incentive of €500 per month for 2 years and a home for families with children. In Spain, the village of Greigos has offered jobs and free rent to attract new residents.

HUD’s role

HUD previously hosted a panel of policymakers, researchers, and advocates to explore how to remediate distressed properties. In addition, the Winter 2014 edition of Evidence Matters analyzed strategies communities have implemented to rejuvenate blighted properties.

The International and Philanthropic Affairs Division works with international partners to identify mutual areas of interest and share research and solutions. We look forward to continued conversation on decreasing blight and remediating abandoned properties to return them to productive use.

Special thanks to Kimberly Rubens and Kathleen Dickhut for their input on their states’ programs for this article.