MAT searches and finds opportunities in numerous U.S. urban markets to provide private funding and support for non-profits to acquire and renovate properties in targeted neighborhoods that have become controlled by municipalities or other units of local government units, collectively (ULG’s).
These opportunities exist due to the combination of significant buildup in the number of properties acquired by ULGs in recent years, limited federal, state or ULG funding as well as managerial and operational resources available to effectively manage and dispose of the acquired properties and preferential consideration often given by ULGs to sell their acquired properties to non-profits.
The buildup in ULGs control of properties has primarily occurred as a result of ULGs responses to the housing crisis that occurred during the Great Recession including increases in the number of properties seized due to blighted conditions, through property tax foreclosures and other means.
Currently there are approximately 170 Land Banks and Land Banking Programs in the United States and increasing. These Land Banks and Land Banking Programs account for somewhere around 650,000 vacant properties according to some estimates. By itself, the Detroit Land Bank Authority controls approximately 93,000 parcels.
Funding for ULGs to acquire and maintain these properties, which has been significant, came from a combination of Federal, State and ULG sources including the U.S. Treasury Hardest Hit Funds and local property tax penalties.
The ULGs preference towards awarding properties to non-profit buyers is to align shared socioeconomic goals of ULGs and non-profits including the reduction of blight, stabilizing or increasing neighborhood property values, preserving affordable and work force housing, supporting community goals and improving the quality of life. Many non-profits lack the financial, managerial and operational resources to fully and efficiently take advantage of the ULG property acquisition opportunities that are available.
How Can Your Group Benefit?
MAT works with groups like yours: private/non-profit partnerships, experienced with non-profits, to guide appropriate federal, state and local government as well as non-profit relationships. MAT also can assist in providing a comprehensive software-as-a-service system (SaaS) to easily manage and increase profits during this process in collaboration with Exceleras (DispoSolutions). MAT also has connections with national contractors to help your group easily complete needed renovations using local sub-contractor.
By combining the property acquisition opportunities available to non-profits with the private capital sourced, the management, operational, technical and other resources provided by or coordinated through MAT, a target areas’ non-profit partner(s) s will be able to significantly increase its abilities and capacity to effectively pursue ULG property acquisition opportunities.
MAT provides a centralized management structure that oversees and delivers a comprehensive and flexible set of tailored strategies designed to meet the various needs of an ULG using local resources. MAT’s strategies and capabilities range from assisting an ULG to acquire vacant properties, renovate and resell if a ULG is looking to reduce blight, establish a property value floor, and/ or to create quality, affordable or work force housing stock within its geographic market area to assisting an ULG with the disposition of properties previously or to be acquired by an ULG. MAT’s property disposition strategies include evaluation of and as supported the renovation or, if applicable, building housing on vacant lots, the coordination of homebuyer counseling, homebuyer events, locale available down payment assistance programs and mortgage lenders’ programs to stimulate demand. Furthermore, to the extent feasible, MAT’s property acquisition and disposition strategies utilize local labor and material providers’ resources to create an economic stimulus to the ULG market area from the execution of MAT’s strategies.
MAT can provide further information and guidance as to the vision to grow in-need communities and help provide urban revitalization throughout cities in the United States.