distressed building report€¦ · the remainder is composed of apartment units and other property...

2018 DISTRESSED BUILDING OVERVIEW

• Threehundredeighty-one(381)propertieswereidentifiedasdistressedin2018,ofwhich213(56%)areresidentialparcels(1-3units).

• Therewere40fewerresidentialpropertiesidentifiedasdistressedin2018,ascomparedto2017.• More than one-third (38%) of distressed properties identified in the 2018 Survey are located in

DorchesterandRoxbury,while28%areinEastBoston,HydePark,andMattapan.• Itisestimatedthat66%oftheidentifiedpropertiesbecamedistressedin2014orearlier,that34%have

beendistressedforatleasttenyears(i.e.,before2009),andthatninepercent(9%)becamedistressedbeforetheturnofthecentury(2000).

• Thecitywideratefordistressedpropertiesis3.3distressedpropertiesper1,000parcels.• Eighteenpercent(69)ofdistressedparcelshaveoverduetaxesassociatedwiththem,totalling$832,393

owed,foranaverageofslightlymorethan$12,000perproperty.

2018 DISTRESSED BUILDING SURVEY METHODOLOGY

TheDepartmentofNeighborhoodDevelopment(DND)begansurveyingBoston’sdistressedbuildingsin 1997.Since that time, therehasbeenadramaticdecrease in thenumberofdistressedproperties intheCityofBoston.1Beginningin2016,however,theCityadoptedanewmethodologyforconductingthesurvey,renderingcurrentresultsincomparabletopre-2016results.Thecurrentmethodology,aswellastheadditionaldatasourcesofpotentiallydistressedproperties,arediscussedintheappendix.

A distressed and vacant property is any building (excluding sheds and garages on residentialproperty)that isnotoccupiedandhassignsofsignificantphysicaldistress(i.e.,boarded,burned,opentotheelements,orotherwisedeteriorated).Otherphysicalsymptomsofdistressincludeovergrownorneglectedvegetation,accumulationofnewspapers,circulars,flyers,ormail,litter,andtrash,theabsenceofwindowcoverings,building/structuralissues,andvandalism.Indicationsofvacancyincludeuncorrectedcity violations,utility shut-offs, andpostaldatavacancy indicators.Somebuildingsmaybedeemed tobepartially distressed and vacant (i.e., onefloor is occupiedwhile others arenot, but theproperty isdeteriorating).

1From1997to2015,thenumberofdistressedbuildingsdecreasedby80%from1,044to210.

DISTRESSED BUILDING REPORTCALENDAR YEAR 2018

2

DISTRESSED BUILDING REPORT 2018

2018 DISTRESSED BUILDING SURVEY RESULTS

In2018,closeto2,000propertiesweresurveyed,resultingin381propertiesidentifiedasdistressedproperties(Table 1/Map 1).Therewere14fewertotalpropertiesidentifiedasdistressedin2018whencomparedto2017.Inthe2018survey,40fewerresidentialpropertieswereidentifiedforassessmentwhencomparedtothe2017surveypool.Allotherpropertytypes,however,showedanincrease(Table 1).

The current inventory consists of 213 (56%) residential parcels (1-3 units), 73 (19%) commercialparcels,and95(25%)wereotherpropertytypes,includingapartmentbuildingsof4+units,tax-exempt,industrial,andmixed-use(Table 2).

TABLE 1: YOY COMPARISON OF 2018 VS. 2017 DISTRESSED PROPERTY SURVEY RESULTS

COUNT MIXED USE RESIDENTIAL APARTMENTS COMMERCIAL INDUSTRIAL TAXEXEMPT

2017 INVENTORY 395 19 253 17 63 13 30

2018 INVENTORY 381 24 213 19 73 16 36

DIFFERENCE -14 5 -40 2 10 3 6

NEIGHBORHOOD MIXEDUSE

RESID.1-3 UNITS

APTS.4+ UNITS COMMERCIAL INDUSTRIAL TAX-

EXEMPT ALL %

ALLSTON/BRIGHTON 2 4 1 3 1 1 12 3%

BACK BAY/BEACON HILL

0 0 0 0 0 0 0 0%

CENTRAL 6 0 0 9 0 0 15 4%

CHARLESTOWN 0 3 0 0 0 3 6 2%

DORCHESTER 2 46 2 13 5 8 76 20%

EAST BOSTON 5 20 5 5 3 2 40 10%

FENWAY 0 2 3 2 0 0 7 2%

HYDE PARK 0 22 1 5 1 0 29 8%

JAMAICA PLAIN 2 11 0 7 2 1 23 6%

MATTAPAN 0 27 1 7 0 5 40 10%

ROSLINDALE 1 15 1 1 0 0 18 5%

ROXBURY 4 42 5 9 0 9 69 18%

SOUTH BOSTON 0 12 0 7 3 2 24 6%

SOUTH END 2 3 0 5 0 3 13 3%

WEST ROXBURY 0 6 0 0 1 2 9 2%

CITYWIDE 24 213 19 73 16 36 381

TABLE 2: DISTRESSED BUILDINGS BY NEIGHBORHOOD AND TYPE

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MAP 1: DISTRESSED BUILDINGS IN BOSTON 2018 (381 PROPERTIES)

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Commercial (59%)

Industrial (12%)

Tax-Exempt (29%)

2018 DISTRESSED BUILDING SURVEY RESULTS, RESIDENTIAL VS. COMMERCIAL

Table 3 showsthedistributionofresidentialbuildingsbrokendownbypropertytype.Forty-onepercentofdistressedresidentialpropertiesaresingle-families,while38%aretwo-familyandthree-familyhomes.Theremainderiscomposedofapartmentunitsandotherpropertytypes.

Afterexcludingresidential,mixed-use,andapartmentdistressedproperties,almost60%oftheremainingpropertiesarecommercial,followedbythetax-exempt(29%)propertytype,andthenIndustrial(12%)(SeeChart 1). Thirty-fivepercentofnon-residentialdistressedpropertiesareinDorchesterandRoxbury,36%areinEastBoston,JamaicaPlain,Mattapan,andSouthBostonandtheremainderarespreadthroughoutBoston’sotherneighborhoods.Somecommercialandmanyindustrialbuildingscanbedifficulttosurveyaccurately.Buildingsusedaswarehousesmaybeboardedup,orappearderelictanddistressed,andnotbevacant.Duetothis,determiningthenumberofcommercialandindustrialdistressedbuildingsisamoredifficulttaskthanresidentialbuildings;distressednon-residentialbuildingsmaybeundercounted.

2 Mosttax-exemptparcelsdonothavedwellingunits.In2018,fiveoutofthe36tax-exemptparcelswerepreviouslyclassifiedas residentialbeforetheywereforeclosedbecauseofunpaidtaxesrepresenting12housingunits.

TABLE 3. RESIDENTIAL, MIXED-USE AND APARTMENT BUILDINGS BY PROPERTY TYPE

PROPERTY TYPE COUNT %

MIXED USE 24 9%

SINGLE-FAMILY 106 41%

CONDOS 8 3%

TWO-FAMILY 45 18%

THREE-FAMILY 50 20%

APARTMENT (4+ UNITS 19 7%

MULTIPLE BUILDINGS ON SAME LOT 4 2%

TOTAL 256 100%

CHART 1. DISTRIBUTION OF DISTRESSED BUILDINGS WITHOUT DWELLING UNITS (COMMERCIAL, INDUSTRIAL AND TAX-EXEMPT)2

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2018 DISTRESSED BUILDING SURVEY RESULTS, RESIDENTIAL VS. COMMERCIAL, continued

Chart 2(andTable 2)showthedistributionofdistressedbuildingsinBoston’splanningdistricts,whicharetheDND’sgeographicboundaries,andmaynotalignwithboundariesfromothersources.Overone-thirdofdistressedpropertiesarelocatedinDorchesterandRoxbury,while28%areinEastBoston,HydePark,andMattapan.Theremaining34%arescatteredthroughoutotherneighborhoods.

DNDwasabletoestimatethedatewhichbecamedistressedfor81%ofthe2018DistressedPropertiesonthissurvey.Ofthose309properties,66%becamedistressedin2014orearlier,34%havebeendistressedforatleasttenyears(before2009),and9%becamedistressedbeforetheturnofthecentury(2000)(seeTable 4 onpage6).In2018,elevenpropertiesbecamedistressed.

CHART 2. ALL DISTRESSED PROPERTIES BY NEIGHBORHOOD

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2018 DISTRESSED BUILDING SURVEY RESULTS, RESIDENTIAL VS. COMMERCIAL, continued

TABLE 4. ESTIMATED YEAR IN WHICH PROPERTIES BECAME DISTRESSED

YEAR COUNT %%

EXCLUDING UNKNOWNS

CUMULATIVE % OF

ESTIMATES(EXCLUDING UNKNOWNS)

PRE-2000 27 7.1% 8.7% 8.7%

2000-2001 6 1.6% 1.9% 10.7%

2002-2004 13 3.4% 4.2% 14.9%

2004-2006 10 2.6% 3.2% 18.1%

2006-2008 24 6.3% 7.8% 25.9%

2008-2010 24 6.3% 7.8% 33.7%

2010-2012 39 10.2% 12.6% 46.3%

2012-2014 62 16.3% 20.1% 66.3%

2014-2016 52 13.6% 16.8% 83.2%

2016-2018 41 10.8% 13.3% 96.4%

2018- 11 2.9% 3.6% 100.0%

UNKNOWN 72 18.9%

DIFFERENCE 381 100%

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MAP 2: BOSTON DISTRESSED PROPERTY HEAT MAP

DISTRESSED PROPERTY DENSITY AND PREVALENCE RATES

ThedensestclustersofdistressedpropertiesarelocatedinRoxburyandDorchester.Thedensestcluster citywide is found along the Dorchester/Mattapan border, near Franklin Field (Map 2). OthersignificantgroupsexistinEastBoston,HydePark,JamaicaPlain,Mattapan,Roxbury,andSouthBoston.

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DISTRESSED PROPERTY DENSITY AND PREVALENCE RATES, continued

Citywide, there are just over three distressed residential, apartment, and mixed-use buildingsper 1,000parcels (Table 5). It shouldbenoted that someof thebuildingson this listhavecurrentorpendingrehabilitationworksotheirstatusmaychangeuponthenextsurveyround.ExcludingFenway/Kenmore’sanomaly(lownumberoftotalparcelsfortheneighborhood),thehighestnumberofdistressedpropertiesper1,000parcels is7.9 inRoxbury.Roxbury’selevatedrate isaresultofthehighnumberofdistressedpropertiesrelativetothenumberofparcelsintheneighborhood.ItisalsoimportanttonotethatasignificantproportionoflandinRoxburyisdevotedtoopenspace,includingmuchofFranklinPark.ThecombinedprevalencerateinDorchesterandRoxbury,thetwoneighborhoodswiththedensestclusterofdistressedproperties,is11.7per1,000.

NEIGHBORHOOD

TOTAL DISTRESSED, RESIDENTIAL,

APARTMENT & MIXED USE PARCELS

TOTAL PARCELS*DISTRESSED PROPERTIES

PER 1,000 PARCELS

ALLSTON/BRIGHTON 7 6,217 1.1

BACK BAY/BEACON HILL 0 2,478 0.0

CENTRAL 6 1,452 4.1

CHARLESTOWN 3 2,398 1.3

DORCHESTER 50 13,239 3.8

EAST BOSTON 30 5,200 5.8

FENWAY 5 615 8.1

HYDE PARK 23 7,276 3.2

JAMAICA PLAIN 13 4,867 2.7

MATTAPAN 28 5,153 5.4

ROSLINDALE 17 6,479 2.6

ROXBURY 51 6,478 7.9

SOUTH BOSTON 12 5,260 2.3

SOUTH END 5 2,646 1.9

WEST ROXBURY 6 7,897 0.8

CITYWIDE 256 77,655 3.3

*Parcels=1Family,2Family,3FamilyProperties,mixed-useparcelswithmulti-residentialbuildingsandCondoMains(usedasaproxyforcondobuildings.

TABLE 5. PREVALENCE RATE OF DISTRESSED RESIDENTIAL, APARTMENT, AND MIXED-USE BUILDINGS

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TABLE 6. TAXES OWED BY DISTRESSED PROPERTY TYPE

TAX STATUS

Taxtakingforeclosuresoccurwhentherearesubstantialunpaidtaxesonproperties.TheCityissuesalienagainsttheproperty(aclaimoflegalownership)andrecordsthelienintheRegistryofDeedswithin60days.Ifthetaxesarenotpaidwithinsixmonthsoftheduedate,theCitywillfileapetitiontoforecloseontheproperty.Theentireprocesscantakeseveralyears,andsomepropertiesmaynotendupforeclosed.Whenthefilingendsinataxforeclosure,theCitywillissueaRequestforProposals(RFP),acompetitivebiddingprocessforrehabilitationoftheproperty.TheseRFPsfrequentlyrequirethatincome-restrictedhousingarepartofanyredevelopmenttotakeplace.

Eighteenpercent (69outof 381) ofdistressedparcelshaveoverdue taxes associatedwith themforatotalof$832,393owed.3Fifty-eightpercentofthesepropertiesareresidential(1-3units),20%arecommercial,andtheremaining22%areotherproperty-types(Table 6).Theaveragetaxesowedcitywideperdistressedpropertyis justover$12,000.Residentialpropertieshavethemostbacktaxesassociatedwiththematapproximately$368,878total,anaverageof$9,222perproperty.Onaperpropertybasis,commercialpropertieshavethehighestaverageatjustover$20,000.Themaximumtaxesowedforanypropertyis$88,000.

3Parcels=1Family,2Family,3FamilyProperties,mixed-useparcelswithmulti-residentialbuildingsandCondoMains(usedasaproxyforcondobuildings.

LAND USETOTAL TAXES OWED

AVERAGE TAXES OWED

TOTALPROPERTIES

%OF ALL

PROPERTIES

APARTMENT $34,817 $11,606 3 4%

COMMERCIAL $285,332 $20,381 14 20%

INDUSTRIAL $35,638 $8,910 4 6%

MIXED-USE $62,124 $12,425 5 7%

OTHER $45,605 $15,202 3 4%

RESIDENTIAL $368,878 $9,222 40 58%

TOTAL $832,393 $12,064 69 100%

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FORECLOSURES AND DISTRESSED PROPERTIES

Bostondealtwith ahigh volumeofprivatemortgage foreclosures from2006 through2012, butforeclosuredeedshavesincedeclinedsignificantly.Nevertheless,therewerestill418foreclosurepetitions(thefirststepintheforeclosureprocess)thatwerefiledin2017and336werefiledin2018,whiletherewere139foreclosuredeedsin2017and103deedsin2018.Justasforeclosureactivityhasbeendeclining,theforeclosurecrisishasbeenaffectingfewerpropertiesontheDistressedBuildingSurveyinrecentyears.Ofthe381buildingsidentifiedasdistressedin2018,11.2%(43)havehadforeclosurepetitions,and5.5%(20)havebeenforeclosedinthelastfiveyears(2014-2018).Thisindicatesthatfinancialtroubleisoneofthereasonswhypropertiesbecomedistressed.

DISTRESSED PROPERTIES WITH NO CURRENT REHABILITATION WORK

Focusingonthelistofpropertiesthatdonothavepermitspulledorcurrentplansforrehabilitation,thereareatotalof155propertiesthatfitthisdescription.Themajorityofthesepropertiesareresidential(60%), followed by commercial (22%) (Table 7). The bulk of these properties are in Roxbury (22%),Dorchester(20%),andMattapan(13%)(Table 8).

NEIGHBORHOOD COUNT %

Allston/Brighton 5 3%

Back Bay/Beacon Hill * N/A

Central 7 4%

Charlestown * N/A

Dorchester 28 18%

East Boston 6 4%

Fenway/Kenmore 4 3%

Hyde Park 15 9%

Jamaica Plain 7 4%

Mattapan 22 14%

Roslindale 10 6%

Roxbury 35 22%

South Boston 10 6%

South End 4 3%

West Roxbury 5 3%

CITYWIDE 158 100%

TABLE 7: DISTRESSED PROPERTIES WITH NO CURRENT/FUTURE REHAB WORK BY PROPERTY TYPE

PROPERTY USE COUNT %

APARTMENT 5 3%

COMMERCIAL 34 22%

INDUSTRIAL 11 7%

MIXED-USE 13 8%

RESIDENTIAL 95 60%

TOTAL 158

TABLE 8: DISTRESSED PROPERTIES WITH NO CURRENT/FUTURE REHAB WORK BY NEIGHBORHOOD

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CITY STRATEGY

The City of Boston’s multi-pronged distressed building strategy has helped reduce distressedbuildings. Implemented by the Department of Neighborhood Development, the strategy includes thefollowingmajorcomponents:

• DND’s Boston Home Center and Neighborhood Housing Development divisions work with theOfficeofEconomicDevelopmenttoprovidefunding,projectmanagement,andtechnicalassistancetoeligibleprivatebuildingownersanddeveloperstorenovateandredevelopdistressedbuildings.

• DNDsharestheentiredistressedpropertylistwiththeAssessingDepartmenttoensurethatownersofpropertiesidentifiedarenotreceivinganunwarrantedresidentialexemption.

• DND also shares the list with the Inspectional Services Division (ISD) for follow-up on a givenproperty,whenneeded.

• PropertiesthatowetaxesmaybetakenbytheCitythroughTaxForeclosure,whichwillleadtotheirre-development.

• Alistofprivately-owneddistressedbuildingsispublishedonDND’Swebsitetoprovidepotentialdeveloperstheopportunitytocontactownersandpurchasetheirdistressedproperties.

SeetheExhibitofBeforeandAfter,forexamplesofpropertiesthathaveimprovedoverlastyear.

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EXHIBIT A: BEFORE AND AFTER

28 P Street, South Boston: this home was privately redeveloped.

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EXHIBIT B: BEFORE AND AFTER

33 Mount Everett Street, Dorchester: This long-term distressed property was rehabilitated via Mayor Walsh’s Neighborhood Homes Initiative

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EXHIBIT C: BEFORE AND AFTER

247 Harvard Avenue, Dorchester: This triple decker was rehabilitated after a major fire in 2017.

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SURVEY METHODOLOGY

Each year’s survey process beginswith a compilation of potentially distressed properties frommultiple sources. In the past, this was comprised of properties identified through previous surveys,residentcomplaints,andBostonFireDepartmentdata.In2016,newdatasourceswereadded,includingdatafromBoston’s311ConstituentServiceCenter,thevacantandforeclosedpropertyregistrationsfromtheInspectionalServicesDepartment(ISD),propertyconditionappraisalsfromtheAssessingDepartment,andwatershutoffdatafromBostonWaterandSewer.Asaresultofthischangedmethodology,thenumberofpotentiallydistressedpropertiesinthe2016surveywassubstantiallyhigherthaninpreviousyears.Duetothesechanges,this2017reportpresentsamorecomprehensivepictureofcurrentdistressedpropertiesinthecityofBoston.

After the listofpotentialdistressedproperties is compiled, a routemap iscreated forefficienttraveltoviewsitesinthesummerandfall.Foreachbuilding,aphotoistaken,anddatacollectedfromavisualinspectionoftheproperty’sexterior;DNDsurveyorsdonotinspectaproperty’sinterior.Additionaldistressedpropertiesfoundwhileconductingthesurveyarealsoaddedtothedatabase.Thefinallistofsurveyedpropertiesiscross-referencedwithsales,foreclosure,tax,andpermitdata.Iftheanalysisshowsthatthereisevidenceoftransfer(sale),improvementoftheproperty,orpendingplansforrehabilitation,thesepropertiesarenotincludedonthelistthatismadepublic.Thelaststepistoattempttocontacttheownersorpropertymanagersofthepropertybymailtoconfirmorcorrectthedeterminationofthestatusofthepropertyasdistressed.Ifnoresponseisreceivedandthereisnoevidenceofanyplansforrehabilitation,propertiesareaddedtothelistofdistressedpropertiesontheCityofBostonwebsite.2

Inaddition,aneffortismadetodeterminewhenanynewlyidentifiedpropertiesactuallybecamedistressed.Ifthesourcedatadoesnothavesuchadate,DNDbasesitsestimatesonsearchesformentionsof theproperty inonlinenewsarticles, aswell as fordatesofutility shutoffs,fires,board-uppermits,GoogleMapsimages,andtheearliestcomplainttotheCityontheproperty’scondition.

TheDistressedBuildingReportispreparedbyMarioTeranofthePolicyDevelopmentandResearchdivisionoftheCityofBostonDepartmentofNeighborhoodDevelopment. Formore informationabout thispublication, contactMarioTeranat(617)635-0692oratMario.Teran@Boston.Gov.Foralistofcurrentlydistressedpropertiesgotowww.cityofboston.gov/dnd/pdr/Distressed_Buildings_Reports.asp

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