The Other Side of the Affordable Housing Coin: Jobs and Wages

Housing affordability, particularly for median income workers, has become a much-talked about topic of late. Rising rents have forced a large segment of city residents to spend well over 30% of their net monthly income on shelter costs, which can lead to severe financial trauma later on. One of the reasons why city residents are struggling — low city salaries. The urban ideal is to live and work in the same place — however, to do so in Baltimore City is becoming less cost-effective. Even when you factor in transportation costs, depending on your chosen profession, working in DC, and even working in some of the neighboring counties might be more lucrative. For example, if you are an accountant, the median hourly wage in Baltimore City is $30.00. In Baltimore County, that rises to $34.50, in Anne Arundel County, it’s about the same as Baltimore County, and in Howard County, it’s $33.25. My friend Steve, who is an experienced accountant and works in Howard County, earns roughly $41.00 an hour. That’s more than he would earn, on average, in Baltimore City, even for an accountant with the same amount of responsibility and experience.

However, not many in Baltimore City are earning $41.00 an hour, or even $30.00 an hour. In fact, 58% of Baltimore City residents earn $49,999 per year or less, with the majority of those people earning less than $25,000 a year. The fair market rent (FMR) set by HUD, for a two-bedroom home or apartment in Baltimore City of approximately $1250 is well out of reach for most, if not all, of those residents. Yet, despite the lower salaries and despite the rising rents, we’re not making affordable housing for working families a priority, nor are we creating the jobs that can lead to higher salaries for new and existing workers.

When you look at the breakdown of available jobs and education level of residents, it becomes clear which industries need to expand:

Only 27% of Baltimore City residents age 25 and older have a college degree. This means a severe shortage of good-paying steady jobs for the vast majority of city residents. Historically, skilled trades and manufacturing jobs led to greater financial security, homeownership, and retirement with decent pensions/retirement accounts, particularly for those who had no college education. In Baltimore City, however, those jobs are in short supply:

Only 3.6 percent of workers are employed in manufacturing, and only 2.9 percent are employed in construction. The numbers still remain low, even if you add in trade, transportation, and utilities, at 11.7 percent of workers. Compare that to Batltimore County, where the numbers rise to 6.1 percent in construction, 4.5 percent in manufacturing, and 18.2 percent in trade, transportation, and utilities. The numbers in Anne Arundel and Howard Counties are also higher than Baltimore City.

What’s the Solution?

With the number of tax credits given to developers to build luxury apartments downtown, there should be equal attention paid, along with tax credits given to developers to revamp much of our vacant housing stock, especially on the city’s east and west sides, where many low- to moderate-wage workers already live. We also need to incentivize industry — manufacturing, skilled trades and other construction jobs, and utilities. Tax credits for building new facilities, or reusing existing facilities are a must. Better jobs, combined with affordable housing is what’s needed for a stronger, safer city.

Sources: US Census 2009-2013, Maryland Department of Business and Economic Development, US Department of Housing and Urban Development

Baltimore City Needs a Staffed DPW Emergency Number

The number of emails I’ve received lately about water emergencies has reached a critical mass — including a text this morning from a neighbor whose home was in danger of being flooded because of a burst pipe in the street. (Thankfully, the fire department was able to take care of that, but I hate to think what could have happened!)

One man who emailed me recently told a common story — pipes in a vacant home had burst, causing a flood in the entire row of adjoining homes. I was able to email someone at Housing who responded quickly, and an inspector was dispatched the next morning. Unfortunately, it appears many of the homes, including the one belonging to the homeowner who emailed me, may have to be condemned, due to weakened foundations and water damage.

What amazes me about all of this is the fact that Baltimore City has no water emergency number — despite the number of water emergencies that occur, seemingly every day, across the city, whether it’s winter or not. Because of Baltimore’s aging infrastructure, and the lack of attention that’s been paid to it until recent years, it’s no wonder we have so many emergencies — however, the city’s website directs residents to call 311 or fill out an online 311 complaint, which will be answered…shortly. Whatever that means.

Baltimore, Anne Arundel, and Howard County all have water emergency phone numbers, because an emergency needs immediate attention — not attention days later. While I sympathize with the folks who work for DPW in all sorts of weather, the powers that be, from the safety and warmth of their offices, should consider the fact that we need an emergency number, one that is actually staffed with a live person who can then dispatch an emergency crew immediately. Property owners shouldn’t have to face condemnation, loss of homeowner’s insurance, and other ills, simply because our government doesn’t have the foresight to think about what should happen in an emergency.

Contact your City Council representative, and tell them you’re tired of bandaids, you demand real solutions to the problems residents face. Isn’t your water bill high enough without having to pay for a flood?

Mapping Fraudulent Home Purchases

Last month, a federal grand jury indicted Alberic Okou Agodio of Bethesda, MD on multiple charges of wire fraud and identity theft, arising from a $3.9 million mortgage scheme where he and his co-conspirators purchased homes in Baltimore City using false information on mortgage applications, in exchange for kickbacks on each sale. The indictment was recently unsealed, and you can download and read all 45 pages here or read an article Baltimore Brew published this morning.

House flipper Kevin Campbell, under the guise of his shell company E&W Realty, LLC, also participated in the scheme, facilitating the sale of the homes to the straw buyers. All of the homes purchased in this scheme are currently in foreclosure, or soon will be, according to this FBI press release.

Map of homes purchased using straw buyers and fraudulent mortgages
Map of homes purchased using straw buyers and fraudulent mortgages

This is a map of most of the homes purchased using the scam — some were named in the indictment, and some were not (I was able to find 24 of the approximately 36 homes purchased with fraudulent mortgages). As you can see, most of these homes are located in West Baltimore, in zip codes 21217, 21223, and 21215 — three of the most blighted zip codes in the city. They’re also three of the poorest zip codes in the city. Scammers and slumlords tend to prey on poor neighborhoods, where they think their negligence and dishonest behavior will go unnoticed. West Baltimore continues to decline, as the City focuses its efforts on areas of the city like the Inner Harbor, Harbor East, and Downtown — sadly, very few organizations or elected officials are doing much to help the residents of these West Baltimore neighborhoods. Let’s change that.






Homestead Tax Credit: Not for Rentals

The State of Maryland has a tax credit that’s available to homeowners, to offset the high property taxes — this credit is for owner-occupied dwellings only, and not to be used for rental properties where the homeowner does not reside.

If you move away, and wish to rent out your property instead of selling it, you must contact your local assessment office and notify them of the change in occupancy status. In Baltimore City, the contact information is as follows:

Baltimore City Assessments
Wm D. Schaefer Tower
6 Saint Paul St., 11th Floor
Baltimore, Maryland 21202-1608
Hours: 8:00 to 5:00
(410) 767-8250
FAX (410) 333-4626

For other Maryland municipalties, you can download this PDF.

The penalty for wrongfully claiming the Homestead Tax Credit can include the following, under Section 9-105 Tax-Property Article of the Maryland Annotated Code:

(1) A person who has been granted a property tax credit under this section and is subsequently found to not qualify for the credit by the Department shall be assessed all State, county, and municipal corporation property tax otherwise due for each taxable year the person did not qualify to receive the credit.

(2) (i) If a person is found by the Department to have willfully misrepresented facts regarding qualification for the property tax credit under this section, the person shall be assessed a penalty equal to 25% of the amount of the property tax credit received during each taxable year for which the person did not qualify.

(ii) The amount of the penalty shall be separately itemized on the person’s property tax bill and constitutes a lien on the property until:

1. payment of the penalty in full; or

2. if the property is sold in an action to foreclose on a mortgage or deed of trust:

A. a copy of the court order ratifying the foreclosure sale is provided to the supervisor of assessments for the county in which the residential property is located; or

B. an instrument of writing transferring the property is recorded in the land records of the county in which the property is located.

Mapping is on Hiatus

Unfortunately, Google has discontinued their enterprise-level Maps Engine, so our mapping project has hit a bit of a snafu. Luckily, I was able to download all of the data before everything went away, so the mapping project will resume as soon as we’ve established an account with another map provider.

I chose BatchGeo as the new map provider, and will be recreating the maps as soon as the account is ready to go! The current maps, found under the “Mapping” tab in the menu bar, still exist as of today — the links will be changed when the new account is up and running.

Sorry for the inconvenience!

2015 Historic Preservation Awards Nominations

Baltimore Heritage, a group I love and support, is holding their call for nominations again, for the 2015 Historic Preservation Awards.

Historic preservation, particularly in a city like Baltimore that is experiencing a slight…identity crisis, shall we say…is incredibly important. When we fail to preserve our past, we lose what made us great — we lose that part of us that has memories and roots, and we drift without a mooring.

One of the remaining buildings at the Alma Manufacturing site.
One of the remaining buildings at the Alma Manufacturing site.

Buildings like the Eigenbrot Brewery, Alma Manufacturing, and the steel mills — they serve as symbols of a more prosperous Baltimore. A Baltimore I believe we should, and can, strive for again.

If you know of a historic preservation project that deserves special recognition, nominate it here. You have until Friday, March 6.

Are You Past Due on Your Property Taxes or Water Bill?

Don’t let your home go to auction — there is legal help available!

The Pro-Bono Resource Center of Maryland, along with MVLS, is holding three community workshops where lawyers will discuss both foreclosure and tax sales. If you’re behind on your water bill or property tax, don’t wait until it’s too late — find out what your rights are, and what options you have.  There are three sessions:

  • March 21, 2015, 9 AM to 3 PM
  • Poly-Western High School, 1400 W Cold Spring Lane, Baltimore, MD 21209
  • April 9, 2015, 10 AM to 2 PM
  • Urban Business Center, 1200 W Baltimore Street, Baltimore, MD 21223
  • April 15, 2015, 3 PM to 7 PM
  • Enoch Pratt Library, Southeast Anchor Branch, 3601 Eastern Avenue, Baltimore, MD 21224

For more information, and to register for the workshops, please call 443-703-3052.


Monthly Update

This is a new feature I’ve decided to add, in order to keep donors and other interested folks in the loop, with regard to what I’ve been working on. I hope you find it useful! Keep in mind, these lists are highlights, and won’t include everything I’ve worked on during the month.

January 2015 Highlights

  • Google Mapping project continued. However, there’s been a slight snag, as Google has discontinued their enterprise Maps Engine. I’m leaning towards using BatchGeo, which will run approximately $500 a year, at their nonprofit rate — if you have a better solution, please let me know.
  • Wrote a piece on affordable housing for the City Paper, which seemed to be well-received.
  • Researched 12 different properties, suggested some to Baltimore Housing for receivership, contacted banks on three of them, to get the banks to make repairs and secure. Worked with residents on another to find the out of state owner, so their community association could send a letter with a list of maintenance needs.
  • Researched the fiscal impact of foreclosures on Baltimore City, wrote a short piece for the website, to be used elsewhere as needed.
  • Researched upcoming legislation to find bills to support/oppose, set up meetings with legislators.
  • Total blog posts written: 11

February 2015 Highlights

  • Researched nine properties this month, two were submitted to the National Trust for Historic Preservation for inclusion on their “America’s 11 Most Endangered Places” list. Some of the remaining seven properties will go onto the list of industrial properties to highlight this year (not great weather for photo-taking yet!) while others will be sent to Baltimore Housing as possible receivership candidates.
  • Had meetings with elected officials to discuss legislation, so far have supported HB0351, HB0186, and SB0197. Looking at three more bills to see if they’ll be amended before supporting, and unfortunately had to remain silent on two and quietly ask that one not pass.
  • Total blog posts written: 5



Action Needed: Urge Your State Elected Officials to Support HB0351

Baltimore City vacant, owned by a forfeited LLC.
Baltimore City vacant, owned by a forfeited LLC.

Bill Information: Requiring a limited liability company to have a company representative; requiring the articles of organization, articles of cancellation, and articles of reinstatement of a limited liability company to include the name and street address of the company representative; applying to a company representative specified provisions of law relating to a change of a resident agent, a change of address of a resident agent, or a resignation of a resident agent of a limited liability company; etc. You can download the full text of HB0351 here.

Why This Bill is Important: Many of our vacant properties, whether a nuisance or not, are owned by LLCs: Limited Liability Companies. Currently, the law requires a designation of a Resident Agent, who is authorized to receive summonses and subpoenas, along with other court/legal documents. This person, most of the time, has no authority to make any decisions with regard to the property owned by the LLC, or assist residents with concerns they may have.  HB0351 would require an LLC to designate a company representative — a member or employee of the LLC who would be better positioned to address concerns or complaints regarding the company’s business practices or property matters. In Baltimore City, and municipalities on the Eastern Shore and Western Maryland, this bill would alleviate the lack of communication between property owners and residents when issues arise with vacant or nuisance properties.

What You Can Do Now: No matter where you are in Maryland, contact your legislators, and ask them to support this bill.

Action Needed: Urge Your Legislators to Support HB0186, Maryland Uniform Real Property Transfer-on-Death (TOD) Act

A vacant home in Baltimore City, the owner has been deceased for some time.
A vacant home in Baltimore City, the owner has been deceased for some time.

Bill Information: Establishing the Maryland Uniform Real Property Transfer-on-Death (TOD) Act; authorizing an individual to transfer specified property to one or more beneficiaries effective at the transferor’s death by a transfer-on-death deed; establishing that a transfer-on-death deed is revocable and nontestamentary; providing that the capacity required to make or revoke a transfer-on-death deed is the same as that required to make a will; etc. You can download the full text of HB0186 here.

Why This Bill is Important: Beyond the obvious benefit, in Baltimore City, so many of our vacant properties are “owned” by dead people, or heirs who are in the wind, having no interest in going through the lengthy probate process to take title to a home that may or may not be of much value. This could allow for quicker disposition of the property, reducing the number of vacant blighted structures across the state.

What You Can Do Now: No matter where you are in Maryland, contact your legislators, and ask them to support this bill.