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Myths

Owner Tracking

Donor/Taker

Condemnation

Auction

Gift Properties

$1 Houses

 

The system perpetuates incorrect information to the public surrounding this housing crisis issue. It doesn't look good for them politically if houses are crumbling in Philadelpiha neighborhoods, while millions of dollars are being spent on new stadiums. The blame needs to rest on people who are lazy and who don't do anything to clean up their neighborhood. However, this is wrong. We, at the simple way, have been tring to jump though their hoops just so that we can expose the injustice they embody. These are a few of the myths we've heard from politicians, city workers, friends, and co-workers. We try to explain them as best we know. We are constantly learning as well. See also the FAQ.

Owner Tracking
MYTH: The City claims to provide information on the current owners of abandoned properties. Agencies, such as the Records Department in Room 154 of City Hall, have been established in order to assist folks looking to acquire abandoned housing. They are supposed to help people find the owners in order to inquire about a transaction, either privately, or through city agencies. (see Donor/Taker in myths and getting abandoned housing)

REALITY: The City provides little more than the owner's name to "help" with owner tracking. They seldom, if ever, provide a valid address, for the owner has nearly always moved with no forwarding address. Accasionally, they will provide a phone number, usually disconnected. The owner often wants to simply sever all ties to the property (and has done so with little resistance), leaving them abandoned, and leaving the neighborhood to suffer the consequences of their neglect.


Donor/Taker
MYTH: This is perhaps the City's most significant housing renewal myth (except perhaps for the $1 houses). The Donor/Taker program has been designed by the City for the sole purpose of renovating abandoned housing. It is theoretically designed to get abandoned housing and squats out of the hands of neglectful owners and into the hands of people who have the resources to rehabilitate the housing. Hypothetically, the owner (the "donor") voluntarily donates the property to the City (and in return receives City tax forgiveness - past water, sewage bills, and city taxes). The City forgives these debts and transfers the title to the new owner (the "taker").

REALITY: The Donor/Taker program has an extensive application with unreasonable criteria that must be met by the people looking to obtain the property. The abandoned house is required to meet standards which negate the principle of renovation. If the abandoned property met the criteria for the Donor/Taker program, they would not be abandoned. For instance, the title must be thoroughly clear (no mortgages, no bankruptcies, no outstanding debts other than city taxes). Moreover, at any point during the process, the City can choose not to donate the property to the Taker, and can either retain ownership of the property, or they can condemn and demolish the property! (which actually happened! - see case study).


Condemnation
MYTH: Also known as Act 94, this is designed to get abandoned properties out of the hands of neglectful owners. Many of the houses have thousands of dollars owed in taxes or mortgages. Others have been broken into and set on fire. Often the owners have moved and severed relationship (responsibility) with the property. So, the City will theoretically declare properties condemned, and take ownership of them. Then, the option is open to transfer the property to someone who will rehabilitate it.

REALITY: For whatever reason, the City has established a bureauocracy that requires over $50,000 simply to undergo the process of condemnation (for an abandoned property appraised at $5,000.) In other words, they must pay about 10 times the property's value in order for it to be considered condemned. Moreover, they don't guarantee ownership of the propery after this process.


Auction
MYTH: The City provides a monthly auction called the Sherrif's Sale. This is where abandoned (and non-abandoned) properties are auctioned off, beginning at $800 (this is also the amount of deposit needed for an individual to put up the house for auction). All auctions give off the impression that the City is trying to get rid of abandoned houses in an attempt to put them in the hands of owners who will revitalize them.

REALITY: Hundreds of people attend Sherrif Sales. Over 80% of the people attending the auction are banker, mortgage companies, and people from the city. Somehow they are convinced they will get the (often) thousands of dollars owed on their properties. Often, they bid up the price until they get a satisfactory amount. Real estate lawyers also are there to buy up property to re-sell. There is almost no possibility of small families and grassroots organizations getting needed property that they could begin working on immediately.


Gift Properties
MYTH: The City provides a program callen Gift Properties, by which they have compiled a list of properties which they are willing to give away. Through an extensive application process, the City claims to be donating these a "gifts" to owners who, in return, agree to fix them up.

REALITY: Of the over 26,000 abandoned houses in Philadelphia, only about 50 houses make the GP list. Many of these properties have since been demolished or crumbled to the ground. Others are filled with trash. To qualify for one of these houses, an individual needs to qualify for Section 8 housing (meaning their income must be a certain percentage below the poverty line). If we think about this for a moment... It costs a considerable amount to renovate one of these houses. (Our budget is well over $30,000.) Which family, qualifing for Section 8, can afford to pay to renovate one of these properties. (And this says nothing about needing to get the proper permits - which alone can cost several thousand dollars.)


$1 Houses

MYTH: There is a program that gives people and non-profits abandoned houses for $1 each.

REALITY: There USED TO BE a program that did this, but it is no longer. Tony Campolo used to talk about this option in Philadelphia. As far as we know, this hasn't been an option for the past several years. The RDA said that it's been replaced by the Gift Properties Program.