The city’s use of two anti-blight laws in the last few years has resulted in increased property values for certain parts of the city, according to an analysis by the community development financial institution, The Reinvestment Fund .
The report, “Strategic Property Code Enforcement and Impacts on Surrounding Markets,” to be released in a few weeks (an executive summary and presentation was released this week) found that addressing blighted properties through fines and permit fees increased the sales value of surrounding properties by as much as $74 million.
“This would translate into increased transfer tax revenue for the City estimated at $2.34 million,” the report states.
Research for the analysis was focused on housing markets where there was a “spatial clustering,” of activity from the city’s Department of License and Inspections.
TRF’s analysis seems to support the theory that “neighborhoods that receive concentrated code enforcement should later exhibit more and higher value real estate sales than similar areas that have not.”
The contrated code enforcement was a combination of the use of a 2010 state law, Act 90, which gives the city the right to go after the private property of those who own blighted land and buildings, and issuing fines to property owners with missing or boarded up doors and windows on blocks that are at least 80 percent occupied.
Click here to see TRF's summary presentation.
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