Vacant property registration programs: a new approach to managing the foreclosure crisis in North Carolina

The economic downturn and attendant mortgage foreclosure crisis have exacerbated the problem of vacant properties at a time when market demand has been insufficient to absorb the extra stock. Vacant or abandoned properties create costly problems for municipalities. They destabilize neighborhoods by contributing to crime and create an impediment to individual neighborhood redevelopment by lowering the livability of neighborhoods and reducing property values. They are vulnerable to fires, floods and other disasters. Vacant properties create a drain on city finances, with property tax revenues falling as demand for government services, such as police patrols and code enforcement, are increasing. In response to the blighting influence and expense of vacant and foreclosed homes, local governments throughout the United States have begun to enact vacant property registration ("VPR") ordinances. Registration ordinances typically require owners of properties that have become vacant or abandoned for a certain length of time to register formally with the local government. Registration provides the local government with a point of contact for regulation and holds the owner to certain safety and maintenance standards. Such ordinances often include fees for registration and penalties for failure to comply, which offset the regulatory and administrative costs of the program. North Carolina's history of strict statutory interpretation under Dillon's Rule combined with the fact that the relevant statutes overlap and sometimes contradict each other creates a confusing environment for constructing coherent policy. Despite these difficulties, in December of 2009 the town of Warrenton adopted North Carolina's first VPR ordinance. Hickory has also considered the possibility of a vacant property registration program to supplement their efforts to manage vacant properties in their town, but have yet to move this plan forward. Other North Carolina municipalities are likely to follow. In Chapter One of this paper I will discuss what led to the recent rise in vacant properties throughout North Carolina and how vacancies affect a municipality and its citizens. I will also discuss the challenges of implementing a VPR program in North Carolina. In Chapters Two I will detail the methodology used in undertaking this project. In Chapters Three and Four I will examine Hickory and Warrenton's efforts to manage vacant and abandoned properties in their town. In Chapter Five I will present a strategic approach to developing a VPR ordinance in North Carolina based on the case studies of Hickory and Warrenton, a thorough analysis of VPR ordinances throughout the southeast and my understanding of North Carolina law.Master of City and Regional Plannin