I. Overview

For the purposes of these policies and procedures, the City defines "abandoned properties" as those that are vacant, have missed at least one tax cycle, have at least one state or local code violation against the property, and where the property owner is making no attempts to bring the property into compliance. The chart below demonstrates the characteristics of abandoned versus vacant properties.

Occupied		Vacant
All Taxes Current		NOT Current on Taxes
Not Occupied, but House could be up for Rent		NOT Occupied, NOT Actively listed for Sale or Rent
Lawn Maintained		High Weeds & Grass
Sealed/Closed in a Safe Manner		Negligent Owner

Indiana state statute authorizes The City of Indianapolis through the Department of Metropolitan Development's (DMD) Indy Land  Bank to acquire problematic or tax delinquent residential properties and convey them to not-for-profits, abutting neighbors, individuals and other responsible developers. The Land Bank is a section of DMD and therefore all actions must go before the Metropolitan Development Commission for approval.

A. Historical Context
In 2006, the Indiana Legislature passed Public Law 169-2006 (HEA
1102) which allows county executives - the Mayor of Indianapolis, in the case of Marion County - to more effectively address abandoned properties in their communities. One significant part of this legislation enables the City of Indianapolis, through the Department of Metropolitan Development (DMD) to acquire, manage and sell vacant, tax delinquent properties for redevelopment. The DMD Indy Land Bank was created in 2007 as a redevelopment tool to move properties back on to the tax roles, provide alternative housing options, and assist in moving neighborhoods from blight to bright.

B. Mission
Through DMD's Indy Land Bank, The City of Indianapolis seeks to acquire abandoned, tax delinquent and other problem properties, hold and maintain them temporarily, and make them available to not-for-profit and for profit developers, sworn public safety officers, and adjacent property owners. Through this effort, the City will return troubled properties to the tax roles, eliminate public safety hot spots, and improve the quality of life in our neighborhoods.

C. Goals
The goals of the Indy Land Bank are to do the following:
1) Eliminate the harm caused by vacant, abandoned and tax-delinquent properties.
2) Reduce the time associated with returning the properties to productive use.
3) Convert properties from a state of abandonment to productive tax producing properties.
4) Hold properties for future development.
5) Strategically acquire properties that can be useful for community or economic development.

II. Indy Land Bank Property Acquisition Process

Strategic Acquisition
The Indy Land Bank is authorized to acquire properties anywhere in Marion County and thus strategically identifies and qualifies properties which can have the most positive impact on community revitalization. Initially, most Indy Land Bank property acquisitions will occur primarily in Center Township where the issues relative to blight are the most urgent, concentrated and apparent.

The Land Bank can acquire properties from:
1) Marion County Tax Sale
2) Marion County Surplus
3) Donation
4) Purchase

A. Marion County Tax Sale
The Marion County Treasurer annually prepares a list of all Marion County properties with unpaid taxes from the prior 2 tax cycles. This list known as The Treasurer's Tax Sale Eligible List and is prepared approximately 4-5 months prior to the designated tax sale. There is one tax sale per year.

Any properties with ROD, or VBO violations are removed from the Tax Sale Eligible List. The remaining properties become the Tax Sale Qualified List.

Throughout the year, DMD staff also compiles lists of problematic properties from neighborhood organizations, and keeps track of other properties that present code or law enforcement problems. Data is compiled from the Mayor's Neighborhood Liaisons, the Mayor's Action Center (MAC) calls, multi-agency SWEEPS, repeat high weed and grass complaints, and complaints to the DMD's Unsafe Building Manager. Properties on these lists or maps are researched for tax delinquency. Tax delinquent properties are then inspected by DMD staff to verify vacancy. Properties verified as vacant, which have at least one violation, and are tax delinquent one cycle, become part of the Certified Vacant/Abandoned Property List.

The Certified Vacant/Abandoned List is presented to the Mayor to approve. In 2006, the law was changed so that the MDC would make a recommendation to the County Executive (Mayor) to designate and certify certain properties as vacant or abandoned and properties to be included on the Auditor's list as eligible for sale due to delinquent taxes or special assessments being owed. Once the Mayor has certified the list by his signature, and the resolution passed by the MDC, it is then sent to the Marion County Auditor and Marion County Treasurer.

Any property on the certified list of eligible properties can be acquired by the Indy Land Bank if there is no successful bid on the property at the Treasurer's Tax Sale. If not redeemed within the 120 day redemption period, the property is transferred to the Indy Land Bank for disposition.

B. Marion County Surplus
The Indy Land Bank can acquire properties from the Marion County surplus. If the Marion County Treasurer's Office is holding one or more parcels of land that are important to a development of scale or has an important relationship to land already owned by the Land Bank, a simple request can be made to the Treasurer's Office. Once a request has been made, an application must be filled out and a check prepared for $320 for the purchase of the land. LB Manager must then attend the next Marion County Board of Commissioners (MCBOC) meeting to formally request the land. If accepted, the MCBOC will issue a conditional deed with a deadline as to when a development must occur on that land.

C. In-kind Donation
Properties can be donated to the Indy Land Bank if all taxes are current and the property does not have any open code violations (H&HC, Zoning, Compliance, etc.). The title must be conveyed to the City of Indianapolis with no other encumbrances. The Indy Land Bank Manager will make a determination if the contribution of the property is strategically advantageous to the Land Bank and to the Indianapolis community.

Donated property must meet the following criteria:
1) The property must be in a redevelopment area.
2) The property must present a viable option for redevelopment.
3) All encumbrances must be paid by the donor.
4) The donor must complete an application and pay the $50.00 processing fee for consideration.

Any property that is donated to the Indy Land Bank is considered property of the City of Indianapolis and will be treated as such. DMD may choose to hold the property. No priority consideration will be given to donors seeking to purchase the property in the future. Donated property will be made available for sale to qualified buyers, as described in this policy.

III. Indy Land Bank Disposition of Properties
The City of Indianapolis has identified the following priorities for the disposition of Indy Land Bank properties:

1) Neighborhood revitalization
2) Homeownership
3) Return property to tax base
4) Conformity to the Marion County comprehensive plan
5) Overall positive impact on the community

The Indy Land Bank can dispose of properties to not-for-profit organizations, abutting neighbors, sworn public safety personnel, private developers or individuals through a Request for Proposal (RFP) process. All of these potential purchasers must be committed to returning the property to productive use and thereby returning them to the tax roles, reducing the vacancy rate, and enhancing neighborhood beautification with exterior repairs.

A. Community Development Corporations/Not-for-Profit Organizations
In accordance to CITY-COUNTY GENERAL ORDINANCE NO. 5, 2008, the Metropolitan Development Commission, through its Indy Land Bank, shall only sell or grant to a nonprofit corporation or neighborhood development corporation, meeting that meets the following criteria:

(1) It shall have, as a major corporate purpose and function, the provision of housing for low or
moderate income families within the geographic area in which the parcel of property is located;
(2) It shall have been established for at least one (1) year, and provide evidence of its 501(c)(3)
status with a certificate of good standing; and
(3) It shall have demonstrated its capacity to complete the project;
(4) It shall not be in arrears on any taxes or special assessments on any real property that it owns;
And;
(5) It shall, prior to receiving title to the real property, have filed, and complied with the terms of, a "project development agreement" in the form determined by the Metropolitan Development
Commission, which shall require, among other terms, that prior to the transfer of title to the real estate to it:

a. All affected registered neighborhood associations will have been notified and either agreed to
the project or have been granted the opportunity for hearing before the commission; and
b. An acceptable and feasible financial plan for the intended redevelopment has been presented to and approved by the director or the director's designee.

B. The RFP Process
An RFP offering sheet that shows the parcels offered and the offering price is approved for public notice by the MDC. Copies of the offering sheets shall be furnished to prospective buyers on request. Maps, plats, or maps and plats showing the size and location of all parcels to be offered shall also be kept available for inspection at the office of the department.

A notice shall be published in accordance with IC 5-3-1. The notice must state that at a designated time the commission will open and consider written offers for the purchase or lease of the property or interests being offered. In giving the notice it is not necessary to describe each parcel separately, or to specify the exact terms of disposition,
At the time fixed in the notice the commission shall open and consider any offers received. The offers may consist of consideration in the certified check made payable to the Department of Metropolitan Development. All offers received shall be opened at public meetings of the commission and shall be kept open for public inspection. The commission may reject any or all bids or may make awards to the highest and best bidders. In determining the best bids, the commission shall take into consideration the following factors:

(1) The size and character of the improvements proposed to be made by the bidder on the real property bid on.
(2) The bidder's plans and ability to improve the real property with reasonable promptness.
(3) Any factors that will assure the commission that the sale, if made, will further the execution of the redevelopment plan and best serve the interest of the community, from the standpoint of both human and economic welfare.
(4) The bidder's ability to finance the improvements proposed; whether by funding from a lending institution or financial statements proving the bidders ability to self-finance the proposal.

For a period of thirty (30) days after the opening of the written offers and determination on them, no sale may be made below the price shown on the offering sheet, except in the case of sales to abutting land owners.
All parcels that go through the RFP process and do not receive an agreeable bid will be placed on the www.IndyLandBank.com website. Once on the land bank website, all parcels are open for negotiation.

IV. Qualification of Buyers
The Indy Land Bank has generated interest from various organizations who want to acquire the properties at a low cost for housing, construction training, youth work projects or other community building ideas. To ensure the houses are sold to organizations that will bring these properties back on the tax roll and are committed to making them available for rehabilitation, all applicants for Indy Land Bank properties must:

1) Demonstrate that they are a responsible property owner and have no delinquent taxes or code violations on currently owned properties;
2) Submit a development plan for project at the time of application;
3) Provide documentation of approval for the financing for all improvements to the vacant lot or structures;
4) At the time of sale, buyers must enter into a project agreement with the City of Indianapolis with the following stipulations:

a. Within three years of the sale the following repairs must be completed:

1. the project exterior renovation must be complete to minimum standards including:

a. the installation of windows and doors,
b. completion of structural repairs relative to the roof or foundation,
c. replacement of items such as sagging porch roofs or gutters

2. the interior renovations must be completed to comply with Marion County building code standards.

b. Sworn officers or individual buyers must agree to reside in the home for three years or the property will be forfeited and the investment lost. Terms will be explained in the project agreement that accompany the deed.

If the conditions of the project agreement are not complete, the City of Indianapolis is authorized to reclaim the property.

The Indy Land Bank manager considers all applications and verifies all buyers' eligibility. Priority consideration will be given to buyers who are:

1) Community Development Corporations/Not for Profits (With Housing as a part of their mission statement)
2) Indianapolis residents
3) Buyer/Occupants

A. Community Development Corporations/Not-for-Profit Organizations
All established not-for-profits can acquire property with or without a structure from the Indy Land Bank for $2,500 per parcel. Applications must be accompanied by:

1) A letter of intent
2) Proof of financing
3) Non- refundable application fee of $200 (applied towards the purchase price)
4) Development plan

Not-for-profit buyers will initially be limited to purchasing 3 Indy Land Bank properties within a 6 month period unless the buyer has a demonstrated capacity to successfully acquire and simultaneously renovate multiple buildings or if the parcels are being acquired for a development of scale. Consideration for additional purchases will be given after an evaluation of the progress on the initial 3 properties after 180 days.

B. Sworn Public Safety Personnel
Sworn public safety personnel can acquire property with or without a structure from the Indy Land Bank for $2,500 per parcel after the property has been offered for public bid. In addition to the items required by not-for-profits, sworn public safety personnel must:

1) Document their current employment status
2) Present documentation of passage of either the Indiana Law Enforcement Academy (ILEA) or the Fire Fighters Academy, and;
3) Agree to reside in the property for a minimum of 3 years before the property can be sold

C. Abutting Neighbors
Abutting Neighbors must be a residential owner of contiguous property to a vacant lot or structure in the Indy Land Bank. They are given priority consideration to purchase abutting lots, that have been offered for public sale, for whatever they determine is a fair asking price. DMD is required to have an appraisal of the property, post the availability of these parcels in the newspaper, and present a resolution to the Metropolitan Development Commission accept or not accept any bids received. Neighbors are allowed to submit their bids for the abutting property. If two neighbors submit bids, DMD is required to take the highest bid. If only one bid is submitted, DMD will then enter into a purchase agreement with the abutting neighbor for the conveyance of the property. If no bids are received the City can negotiate with any qualified bidder.

Abutting neighbors must reside in the property adjacent to the Indy Land Bank property for which they are bidding. Any purchase by an Abutting Neighbor cannot be conveyed to another owner for a minimum of 3 years.

D. Private Individuals
Indy Land Bank can sell properties directly to homeowners who plan to make the necessary repairs based on the guidelines listed above under “Qualification of Bidders” item 4. These properties will be available through the Request for Proposal (RFP) process. The RFP must be presented to the MDC for approval and all bids received opened at a public hearing. DMD can develop a RFP for each parcel that becomes available or offer multiple properties in a wholesale RFP. The RFP is the official opportunity for private individuals to bid on the Indy Land Bank property. The RFP must be properly advertised in the newspaper and there must be a minimum of 30 days provided for the public to bid on the properties.

Bids during the first 30 days will be considered starting at the average price of the required two appraisals. After 30 days, the price will be adjusted to $2,500 for vacant lots and opened for buyer offers for lots with structures.

Individual or for-profit buyers will initially be limited to purchasing 3 Indy Land Bank properties within a 6 month period unless the buyer has a demonstrated capacity to successfully acquire and simultaneously renovate multiple houses. Consideration for additional purchases will be given after an evaluation of the progress on the initial 3 properties after 180 days. Other consideration for the acquisition of multiple properties will be given to for-profit developers who have proposed a project of scale.

V. Application Process
An application for Indy Land Bank properties must be submitted in its entirety. All bid packets are required to be opened at a public hearing of the Metropolitan Development Commission (MDC) which meets the first and third Wednesday of each month. Once opened, staff reviews the bid packets for final recommendation to the MDC. Bids for Land Bank properties are put on the subsequent MDC agenda for approval or denial.

The highest, most qualified bid will be accepted. Bids will be selected on the following criteria:

1) closest to DMD asking price,
2) applicant properly demonstrates capacity to rehab the property with proof of funding from a lending institution or financial statements, and
3) applicant has a demonstrated ability to manage the construction project within the mandated timelines.

Applicants will be informed of the MDC's decision in writing. If an application is accepted, a closing will be scheduled (usually within 45 days).

At closing, the complete bid amount is due by a certified check made payable to: First American Title Corp (FATCO). At the closing, the bidder will receive a HUD-1 closing statement, and several other standard closing documents. FATCO will record the Deed with the Marion County Recorder's Office.

Any fees acquired prior to the sale date should be outlined on the HUD-1 at closing. Any additional fees that may show on the subsequent tax bill will be evaluated by DMD and adjusted to reflect the accuracy of fees at the time of closing.

After the closing, the purchaser is responsible for any violations, taxes, sewer fees and any other issues related to the property purchased.

VI. Additional Information

A. Clean Title
Property is transferred from the Indy Land Bank with a clean title. Once the property is conveyed to the Indy Land Bank, DMD will initiate title services to expedite the sales process once a buyer has been identified. DMD will take the necessary steps to insure that the title quiet title insurance is provided at the time of the closing.

B. Offering Price
By Indiana State Law, before offering for sale to the public any property, the commission shall cause two (2) separate appraisals of the fair market value to be made by independent appraisers.

There is an application fee applied to all applications submitted. That fee is not included in the offering price. Ex. If you are an individual interested in a Land Bank house and the offering price is $2,000 and you bid $2,000, your application must include a certified check for $200 and the full $2,000 is due at closing. The application fee for abutting neighbors is $100, all other application fees are $200.

Properties are offered to CDC's and NFP's at cost, which means $2,500, which also includes a $200 application fee.

C. Demolition
All Indy Land Bank properties will be inspected at the time of acquisition. If there are any code violations pertaining to the exterior of the building, those issues will be fixed as money is made available. If there are any concerns regarding the foundation, deteriorating walls or roofs, etc. and they warrant demolition, Land Bank staff will begin the demolition process following all of the guidelines outlined for demolition in the Unsafe Buildings Law.

If a house or structure does not have any violations and the structure and exterior walls are sound, then no demolition will be requested. However, the property will be inspected on a regular basis to ensure the house is sealed in a safe manner that satisfies the Unsafe Buildings Law.

D. Maintenance
All properties in the Land Bank are inspected monthly or on a regular basis. The Land Bank has contractors to do the following work:

1. Mowing
2. Boarding
3. Trash Removal

Grass is mowed on a bi-weekly schedule from April to August and once a month in September and October, if needed. Trash is removed if found by a Health and Hospital inspector, citizen, or during an inspection by Staff. Openings (windows, doors, etc.) are boarded only on the lower level of a house unless necessary to preserve the integrity of the house. This is done if found by a Health and Hospital inspector, citizen, or during an inspection by Staff.