The problem of vacant, blighted land in the city of Providence began in the 1940s- 50's when immigrant populations fled to nearby suburban areas. In the last forty years, Providence has lost approximately one third of its population. This massive depopulation increased property abandonment and left behind a deteriorating housing stock (with decreased property values and increased tax rates) that eventually led to the creation of vacant lots. No one keeps track of the exact number of vacant lots; the Planning Department’s records of vacant lots are based on 1996 property assessments from the Tax Assessor’s records. The best estimate of vacant properties is as follows: Privately owned lots = >2,000, Tax reverted Lots = 200, City Owned Lots = 200-400. A great many of these lots are concentrated in Upper and Lower South Providence (1188 vacant lots are in South Providence).

My analysis focuses on the redevelopment of vacant lots that are tax delinquent, city-owned properties. It is more difficult to discuss the redevelopment of vacant lots that are privately owned because unless the owner is willing to sell the property or is tax delinquent there are few practical ways to acquire such property for redevelopment purposes. On the other hand, lots owned by the City or by the Providence Redevelopment Agency (PRA) are primed for redevelopment because the City has an interest both in putting these properties to productive use and in revitalizing neighborhoods in the process.

    The disproportionate density of vacant land coupled with the low-income, minority characteristics of the population residing in South Providence makes the issue of vacant land an environmental justice issue (See Maps of Low Income Populations, Minority Populations, Vacant Lots in Providence). The many negative repercussions associated with vacant lots, including lowered property values, potential health hazards, illicit activities, vermin, and missed opportunities for positive redevelopment, bear unequally on low income and minority populations.

The Providence Redevelopment Agency (PRA) is a quasi-governmental agency that is responsible for turning land in Providence into productive, tax paying uses. This City agency owns approximately 200-400 vacant lots. The PRA purchases properties that are specifically targeted in redevelopment proposals for each neighborhood. Generally, they purchase tax delinquent lots necessary for a particular redevelopment project.  The number of lots the PRA can purchase is limited by the costs of foreclosing, marketing and redeveloping lots.

The current system of redevelopment for tax delinquent, vacant land is an extremely complicated and lengthy process. The process begins when tax delinquent properties go to tax sale but it does not always end up in the productive reuse of vacant land because of four major problems in the current system:

1. Redevelopment goals & mechanism for community involvement are undefined
2. Lot assessment is absent
3. Tax policies are holding up redevelopment
4. Resources to drive the process are lacking

There is a definite need for new housing units in South Providence but whether the housing should be rental or owner-occupied is often debated within communities. Land-use maps of South Providence show that there is an opportunity to turn clusters of vacant parcels into new residential properties because of the high density of vacant land interspersed in residential neighborhoods (Map of Land Uses in South Providence).

Development consistent with existing, surrounding land uses and neighborhood redevelopment plans can be encouraged  to maintain stable residential and commercial districts. Lots that are smaller than 4000 sq ft (City considers such lots too small to build a structure on) can be redeveloped into greenspace, agriculture, off-street parking, tot-lots, and other uses identified by the community. Local groups such as Southside Community Land Trust have redeveloped vacant lots into urban gardens or agriculture with community input.  Balancing community input with citywide planning goals in redeveloping vacant land will help narrow the different goals of reducing density (i.e. Greenspace) and maintaining the urban streetscape (i.e. new housing units). 

The City must consider; what is the most effective model of community participation in land use planning and vacant lot redevelopment? Although there are several models of community participation currently in use in Providence, it is not clear which model is the most effective or sustainable over time. It is important to examine existing models for their merits and weaknesses while keeping an open mind to new approaches or new combinations of strategies that may have potential for success in Providence. 

1. Back taxes 2. Tax abatement process 3. Future Taxes.  

Some of the city’s tax policies can directly conflict with the City's own goals of redevelopment. The Tax Collector and Tax Assessor's primary concerns are to raise revenue for the city by assessing and collecting taxes on properties. The goal of the PRA (City’s real-estate arm) is to move this land into productive use. For many vacant lots, the taxes assessed by the Tax Assessor’s Office on already undesirable vacant land can make the PRA’s job of redevelopment extremely difficult. 'The large amount of back taxes on these properties inflates their resale price over time. Each year a tax delinquent property goes to tax sale without being purchased, it accumulates more debt. In the meantime, the City holds the tax title to the property but no one is acting as an owner, maintaining the property or paying taxes. Consequently, vacant lots can become very expensive to foreclose and redevelop because the taxes are too burdensome and can even exceed the value of the land itself at times.

Are delinquent taxes worth the wait? Once the city or the PRA forecloses on a vacant lot and takes title ownership, delinquent taxes must still be paid by the new owner or abated by City Council. This abatement process is not well defined and can pose several obstacles to redevelopment. If the PRA wants a group of vacant lots transferred to a Community Development Corporation for redevelopment, they must petition the City Council to grant tax abatements on each lot.  Although the City Council usually approves tax abatements for CDC’s or residents, this step in the redevelopment process takes up to several months and can be influenced politically.  The City Council recently passed legislation that outlines and streamlines the process of reviewing PRA petitions for tax abatements.  Hopefully this will avoid further delays in redeveloping land by the PRA.  Ultimately, the City (i.e. City Council, Tax Collector) must realize that certain taxes will never be collected and that there is little potential for tax revenue from these lots until they are redeveloped.

What can be done to make taxation less burdensome for redevelopment? First, city tax policies should be clarified to make the procedure for abating and assessing taxes on abandoned, vacant land more timely and realistic. A simple brochure/booklet could be prepared for City Council members, city and state agency officials, non-profit organizations, and residents. In addition to the cooperation of the City Council and the Tax Assessor's Office, state legislation would be required to allow the city to treat tax delinquent vacant lots (specifically those owned by the PRA) differently. In the case of PRA properties, back taxes should be automatically waived once tax title is purchased and the agency owns title to the property. Utilization of the Tax Sale Realty Law  (RIGL 44-9-8.1 &2) can pull properties off tax sale altogether and allow some mechanism of community input to help identify the properties that can be redeveloped. By skipping the tax sale process and transferring the land directly to the PRA, the redevelopment process is faster and more responsive to the community’s needs. State legislation (RIGL 45-32-40) exists to allow the PRA to become tax-exempt and act as a land bank for vacant properties.

Why is the physical condition of a vacant property important to equitable redevelopment? Currently no policy or mechanism exists to assess the physical conditions of a lot either before or after the redevelopment process. The condition of vacant lots is important to consider in the redevelopment process for the following reasons:

The results of my soil testing on 13 of CleanScape’s 21 lots highlight the range of lot contamination and also the potential barriers to clean up, redevelopment and soil sampling. I found that 8 of the 13 lots tested had significant levels of lead (>1000 ppm). In some instances when the PRA transferred vacant lots over to non-profits for redevelopment, the city assumed the lots were lead hazardous and demolition crews excavated the topsoil and dumped fresh soil on the lots without testing for contamination. This level of clean up can cost anywhere between $3700-$6400. In comparison, composite soil lead testing can cost between $1000-$2500. In cases where lots are lead-safe, it would be more cost effective to test all the lots and then determine the level of clean up rather then assuming "worst-case" scenario (excavation) for every redevelopment project. This method assumes that lead is the major risk associated with the soil.  Although soil lead is a significant factor affecting lot conditions (due to old housing stock with lead-based paint), debris such as foundations and underground storage tanks can add unexpected costs and delays to the redevelopment process. A simple visual survey done in conjunction with soil testing before lots are transferred for redevelopment or even at the time of purchase could help solve this problem.

Redevelopment goals & community involvement

·         Involving residents in street associations or local community groups early in the redevelopment process by allowing these groups to identify vacant lots that are attractive for redevelopment before the lots go to tax sale.

·         Monitor effectiveness of current models of community involvement (including strategies used in other cities) to determine which is best suited to each community.

·         Providence’s Planning Department sets up redevelopment guidelines for all City-owned vacant lots that any potential redevelopment project must meet before being approved.

Lot assessment

·         The PRA can either contract a local non-profit to conduct the lot surveys and collect soil samples or it can hire a private contractor at a competitive price.

·         Local non-profits can enlist the aid of RIDEM, RIDOH and the EPA to help train residents how to survey and test lots.  Grant money could be used to purchase a portable XRF machine to detect soil lead levels. 

·         The PRA can use soil data and visual surveys to package lots for redevelopment and better estimate the cost of redevelopment and clean up.

Tax policies

·         PRA acquires tax-exempt status so it can serve as a land bank for vacant lots by holding onto these properties until the market is more favorable to redevelopment projects.

·         The Mayor can mandate that taxes which are more delinquent then 1 year to show up on the budget as a source of revenue and that tax sale/delinquency records are accessible.

·         Tax Sale Realty Law could be used more often in conjunction with community groups to decide which lots would be desirable to redevelop in the neighborhoods.

·         An informational booklet summarizing tax related procedures, legislation, and policies that affect the redevelopment of vacant, blighted land in the city for distribution to all City agencies, the City Council, and community organizations.

·         The city and state legislation should make the process of foreclosure for abandoned vacant lots clear and speedy. 

Resources

·         Municipal Bond money to assess, market and redevelop vacant lots.

·         Housing Development loans and grants- HUD & RIHFMC programs

·         Community Development Block Grants – These programs have funded non-profit efforts to deal with different aspects of vacant lot redevelopment. 

·         Mayor must support PRA for the agency to be more aggressive in leading efforts to move vacant, blighted properties in the City’s possession into productive use. 

·         Couple redevelopment efforts for “New Cities” projects with vacant land redevelopment in South Providence.  

by Ana Baptista

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