Baltimore Program Could Repurpose Thousands of Vacant Housing Units

The city and state are investing $3 billion in rescuing vacant residential properties to promote homeownership and reduce blight.

1 minute read

October 13, 2024, 7:00 AM PDT

By Diana Ionescu @aworkoffiction


Row of colorful boarded-up brick two-story townhomes in baltimore, Maryland.

rbecklund / Adobe Stock

Baltimore officials are taking steps to transform vacant homes into usable housing to create more affordable housing and eliminate ‘blight,’ report Dillon Mullan and Dan Belson. Maryland Governor Wes Moore set a goal of transitioning 5,000 units to “homeownership or other positive outcomes” in the next five years.

The city is combining state and city funding to initiate a $3 billion effort aimed at repurposing the city’s 13,000 vacant homes over the next 15 years, with $300 million coming from an industrial development authority and tax increment financing (TIF) bonds. “The TIF structure would allow the city to borrow millions of dollars to help fund the acquisition, remediation and sale of vacant properties. The debt would be paid off with new tax revenue expected to be generated by the improved properties.” Unlike prior TIF initiatives, this proposal would cover vacant properties in a noncontiguous area to include parts of the city with high vacancy rates.

Under a new state law enacted earlier this year, Maryland jurisdictions will be allowed to create vacancy taxes to stimulate development and prevent property owners from letting vacant homes or lots languish unused.

Monday, October 7, 2024 in Governing

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