Omaha Land Bank
Dec 28, 2018 08:36AM
By Leo Adam Biga
Cities around the United States experience problems with blighted neighborhoods, in which certain houses and lots go from assets to deficits. Such sites often become magnets for vandals and vagrants.
Locally, some of these problems found an answer with the creation of the Omaha Municipal Land Bank in 2014. The nonprofit is funded in part by donations.
“The Land Bank was created for the City of Omaha by the Nebraska Legislature to be a catalyst for community development,” says OMLB Executive Director Marty Barnhart. “Our role is to address these distressed properties. Folks can donate properties to the Land Bank they no longer want to care for, or are no longer able to take care of.”
OMLB matches properties with buyers who demonstrate the vision and means to redevelop sites. Buyers get nine months to renovate a home, or two years to build on a vacant lot. The hope is that revitalization encourages neighbors to improve their own places.
The first step is to acquire the properties, and that project takes time and money, especially when it comes to clearing a title on properties whose owners can’t be reached. As a subdivision of local government, OMLB has the power to cancel taxes and municipal liens levied against properties. It can bypass red tape to make purchasing and redevelopment go much quicker. It can also sell properties at lower prices, thus reducing the burden on purchasers to establish equity, borrow money, or make improvements.
“If you think about the city and the county, they could do the kind of things we do, but it would take ordinances, public meetings, and a lot of things to put through their boards,” Barnhart says. “It would take a whole lot longer than the Land Bank with our statuary authority.”
OMLB began selling property in early 2017. The available inventory is listed on its website. The 50-plus properties sold through last October went to “a variety of different individuals and partners,” Barnhart says. “We’ve seen single-family houses transformed and reoccupied.”
He acknowledges the sample size is too small yet to show ripple effects in neighborhoods. But there’s no doubt a long-abandoned house at 2002 Country Club Ave. that was an unsafe eyesore got saved from the rubble heap, redone, and reoccupied.
“It was one of the first big success stories of the Land Bank,” says Omaha City Councilman Pete Festersen, who serves District 1 where the house is located. “That had been a problem for that street for 20 years. We couldn’t find the owner. It was condemned. There were holes in the roof. Animals were in there. It never quite made the list, though, to be demolished. Eventually we did get it onto the list, not wanting to demolish it if we didn’t have to because it was otherwise a very nice property. But it was headed towards demolition until the Land Bank stepped in and finally got a response from the property owner, who was very grateful to sell.
“The Land Bank listed it for a fair, reasonable price and a young couple was able to buy it and rehab it. It’s in great shape today.”
Other transformations are in progress.
An OMLB presentation at their church convinced Carol Windrum and Tim Fickenscher to take on a single-family house redevelopment at 3155 Meredith Ave. Motivated to reverse blight, they used the Land Bank as a social entrepreneurship tool. They purchased the century-old property in January 2018 for $12,500. OMLB shepherded them through the makeover process—the couple’s first time renovating. That included helping find a contractor, who, at the couple’s behest, used as many recycled and reclaimed materials as possible.
The house listed for $77,500 last fall, and Family Housing Advisory Services and mortgage lender Omaha 100 are helping identify prospective low-income candidates to get it sold.
In the Park Avenue area, Brenda and Kurt Robinson seized a chance to prevent another “hole” in the neighborhood when, courtesy of OMLB, they rescued a two-story, 130-year-old house at 2911 Woolworth Ave. for $25,000.
If not for their action, this house might have faced the same fate as others torn down in the area.
“It’s a great structure—super sound. There’s very little we had to do except extra bracing here and there. It’s got a lot of cool exterior features—corbels and fascia we’re working hard to keep. Previous owners maintained all the original woodwork, including cased openings. They were pretty sensitive to the original architecture—thank goodness,” says Brenda, who likes having OMLB as a partner.
“The Land Bank has a mission I can get behind, keeping sturdy old houses alive as really cool places of history as well as homes for the future,” she says.
For greater impact, OMLB targets areas by assembling multiple properties and lots for development. That’s what the organization is doing in the area around 40th and Hamilton streets.
This once-picturesque neighborhood struggled with crime, litter, debris, high turnover, and ill-kept rentals. Since a slumlord relinquished problem properties there and new businesses went in, things have stabilized, says Walnut Hill Neighborhood Association President Murray Hayes. But vacant lots are still an issue.
Walnut Hill is also a focal point due to the Walnut Hill Reservoir, a 16-acre parcel owned by Metropolitan Utilities District. The Land Bank is asking MUD to donate the inactive site for redevelopment. MUD’s weighing what to do.
Omaha City Councilman Ben Gray (District 2), who serves on the Land Bank’s board, says OMLB is ideally suited to be a player in the reservoir’s remaking because the nonprofit’s rules prevent a developer from letting it sit idle.
Barnhart feels OMLB could give a developer a deal that doesn’t require tax increment financing. By assembling and holding properties for developers with the right plans, he says, OMLB protects against speculators.
Gray adds that OMLB is well-poised to address Omaha’s affordable housing shortage in areas of need like this.
“We know we can get nonprofits to do affordable housing, but we’re trying to assemble enough property to entice private developers,” he says. “We’re working on creating solutions to help meet the financing burden developers might face trying to do affordable housing. If we leave it with nonprofits, we’re only going to get so many houses. If we can include the private development community, it increases our ability to get that done at scale.”
Festersen says a proposed city ordinance would create a new relationship whereby the city law department will foreclose on those liens. That will allow the Land Bank to get it back into productive reuse, and on the tax rolls, by purchasing the property. That, and the measures the Land Bank have already taken, are the reasons Gray says, “I think you’re going to see some major developments through the Land Bank in the next two to three years.”
Visit omahalandbank.org for more information.
This article was printed in the January/February 2019 edition of Omaha Magazine. To receive the magazine, click here to subscribe.