Shiawassee In Motion 1.0

Leadership can come from government, but more likely the initiative, commitment, and team effort that defines community leadership comes from citizens and the groups they are a part of. We have seen that in Owosso around the creation of a dog park, historic preservation of downtown, several community actions to promote bicycling, and many other initiatives (click on links to learn some of the specifics). Local government can play a role in convening citizen groups, adopting plans and policies to provide guidance, and by employing certain tools (ordinances, financing, grants) for community change. However, the leadership typically comes from residents with a passion for a cause, local organizations with the capacity to carry out a mission, and from change agents young and old, wise or brash.

Sub-Regional Planning is perhaps the most recent, comprehensive effort to coalesce leadership for community improvement. Championed by the Shiawassee Regional Chamber of Commerce and using the expertise of the the Land Policy Institute of Michigan State University, a group of citizens and leaders from throughout Shiawassee County have been meeting for the last year to learn more about our changing economy, to identify the assets and challenges of our County, and to develop a plan to guide local actions and advocacy. While governments, including the City of Owosso, were involved in this work, it was largely driven by leaders of local organizations and businesses and by interested and engaged citizens. As such, the final plan, entitled Shiawassee In Motion 1.0, is a well-articulated, and informed, statement of community desires.

Shiawassee In Motion 1.0 identifies six focus areas for action and lists several potential initiatives that can be undertaken by the public and/or private sector working in conjunction with local citizens. The focus areas are:

1. Improve Collaboration, Cooperation and Communication between Governments. This has been a goal of several of us on the Owosso City Council and this plan may open up avenues by which we might work with our neighbors and other local governments in Shiawassee County. We need to find ways to better, and more cost-effectively, provide municipal services, spur economic growth, and improve the quality of life for all residents of the County. The first step is the proposed creation of a Shiawassee Intergovernmental Collaborative to bring cities, villages, townships, and County government together.
2. Assist, Accelerate, and Attract Business and Support Innovation and Entrepreneurs. This goal builds on the work of the Shiawassee Economic Development Partnership (SEDP) and the Shiawassee Regional Chamber of Commerce. Our educational institutions, including Baker College, will also be involved in this effort. An initial goal is to build one or more business incubators in Owosso and other cities.
3. Support, Develop, and Leverage our Green Infrastructure. Our natural resources, working agricultural lands, and several rivers form the basis of our green infrastructure that we as a community should use to promote recreation and a higher quality of life, build on our historic--but ever-evolving-- agricultural economy, and help define us a place. The City of Owosso has taken a first step by convening local governments to see where we might collaborate on parks and recreation.
4. Talent Creation and Retention is key to the New Economy of the 21st Century. We have strong schools, but we need to add components that help students develop technical and other career-related skills. Early childhood education is an important component.
5. Placemaking also helps recruit and retain talented individuals of all ages, but particular attention need to be paid to creating a place that appeals to those in their 20s and those starting young families. Specific placemaking initiatives include strengthening arts and entertainment opportunities, celebrating our train history to promote tourism, expanding mobility options not based on the automobile, and building youth activity centers including aquatic recreation facilities.
6. Market, Brand, and Promote the County as a Region with one Voice. Several participants in the process repeatedly identified the need for all of us in Shiawassee County to speak with a unified voice and to work with one another, and not against each other. A first step is to expand the role of the Shiawassee Convention and Visitors Bureau.

Owosso , other communities, and the County as a whole need to position themselves to take advantage of the New Economy that depends on talent, innovation, a global perspective, and entrepreneurialism. Mark Wyckoff, the planning guru from the Land Policy Institute, congratulated the citizen leaders of Shiawassee County on the cooperation and foresight shown by being just the fourth region in the state to adopt such a community-based plan. He noted our many assets, from the Shiawassee River to strong educational institutions, and stated that we as a community need to be forward thinking, welcoming of newcomers and talented immigrants, commit to lifelong learning, and create interesting places in which to live, work, and play.

As a local elected official, I feel compelled to read and respond to the recommendations of our citizens and community activists. This is where we will find leadership for, and to, the future. You to need to be involved. Call the Shiawassee Regional Chamber of Commerce (989-725-1621) to get a copy of the plan and to volunteer to be a part of moving our community forward. More information also at www.shiawassee.chamber.org

Disclosure: the planning process that led to the creation of Shiawassee In Motion 1.o was funded by the Cook Family Foundation, my employer.

Older Housing and Regulation

One of Owosso's defining features are the unique older homes that make up its neighbor-hoods. In many cases, these historic homes grace our streets and provide a wide range of housing opportunities, from restored Victorian single-family homes to affordable multi-family rentals. Unfortunately, a few of the older houses in our community have not been well-maintained, and these homes have become eyesores in the neighborhood and endanger the health and safety of their occupants. The challenge to the City of Owosso is how to prevent houses and apartments from becoming blighted. In doing so, local government must work with private property owners and establish an effective partnership with the housing industry (real estate agents, contractors, investors and financers) who of course are the engines for the rehabilitation and maintenance of housing in our community. A year and a half ago, the City Council held a special session to discuss housing (see summary here).

Aging Housing Stock. About three-quarters of the housing units in Owosso are more than 50 years old, which makes Owosso's housing stock much more like urban areas in Michigan than the rural areas and subdivisions surrounding the City (52% of the houses in Shiawassee County were built since 1960, while only 28% of Owosso's housing is less than 5o years old). Older homes go through changes as owners make repairs and upgrades, repaint, and remodel; sometimes they convert owner-occupied single-family homes to one or more rental units , or vice-versa. The role of buildings change as they age. However, older housing if not maintained begins to decay, and if electrical or plumbing systems fail, or if roof and windows begin to leak, the integrity of the structure can be compromised and the home can become dangerous or uninhabitable. Sadly, in recent years several homes in Owosso have become so dilapidated that they had to be demolished, a cost born by taxpayers and/or property owners.

Property Values. With care and attention, Owosso's older homes become historic points of pride; with uninterrupted time and neglect they become a blight on our neighborhoods. Because of Owosso's traditional town design of homes sitting forward on small lots along narrow streets, it is hard to ignore a residential structure at either extreme of condition. A recently renovated, or even painted, house can make a neighborhood look better and inspire property owners to make similar upgrades. Alternatively, a decaying house creates an atmosphere of decline that can make other homes look sad and may deter a homeowner from making new investments.

The property value of any particular home reflects, in part, the quality of homes surrounding it. Thus, many existing homeowners seek both formal and informal opportunities to urge neighbors to maintain their properties. City-administered building codes, nuisance laws, and zoning rules are among the ways that the community seeks to maintain housing quality. With the majority of homes owner-occupied in Owosso, it should be no surprise a very large majority of people in a recent survey feel that the City should take a strong position on enforcing regulations which seek to maintain the the housing stock.

Weak Housing Market contributes to our housing problems. The financial crisis of 2008-09 devastated the housing market locally and nationally, and we continue to see the results of that collapse of home prices: slow sales, a high number of foreclosures, a cautious mortgage market, and thus difficulties for those wishing to sell or buy homes. In Owosso, the collapse of the housing market is immediately apparent in three ways:

1. Decreased property values resulting in a decline in tax revenues for the City (see this earlier blog post for a description of that problem);
2. An increase in demand for rental properties, as people with less income and/or financing challenges are not able to buy;
3. Decaying older homes as foreclosed or for-sale homes sit vacant and time and neglect takes it toll.

The best remedy for these housing challenges would be an economic recovery and a stronger housing market. However, without such a recovery (and predictions that sustained and strong growth is several years away), the City must take action in an attempt to preserve Owosso's housing stock and ensure that neighborhoods maintain some stability.

Two Regulatory Efforts. Over the last two years, the City of Owosso has taken several steps to seek to maintain housing quality. First has been an effort to inspect rental homes to ensure they meet health and safety standards. This protects the occupants from living in homes that lack a furnace, that have electrical or other fire hazards, or where there are not two effective ways to exit an apartment (these and other code violations have all been discovered--and corrected--through inspections). Code enforcement also helps maintain the appearance and quality of homes for the benefit of the neighborhood and the long-term viability of our housing stock.

The second, more recent effort, is an attempt to deal with the many vacant, foreclosed, and sometimes abandoned houses in Owosso. A proposed ordinance, modeled on one in place in more than 50 cities in Michigan and elsewhere, would require that any foreclosed property that becomes vacant, or any home vacant for more than 180 days, be registered with the City. This enables that City to know who the owner of record is on a property, something that can be difficult when a house is foreclosed and changes hands several times between banks, investors, and homeowners. This allows the City to more effectively enforce ordinances that require lawns to be mowed and trash and other nuisances removed, as well as contact an owner when a home has been vandalized or may present a hazard to the neighborhood (on one bank-owned home the fence around a pool with water had fallen down). It is important to note that this registration, which carries with a $100 annual fee, is not imposed on homeowners who are in foreclosure, but on the institution or investor that comes into ownership of vacant property.

The proposed ordinance would also require that some form of home inspection take place before a vacant, foreclosed property is re-occupied. After sitting vacant as the foreclosure process plays out (an owner typically has six months to redeem a foreclosed home), many of these homes have suffered from the elements, decay which may result in mold, or vandalism of wiring, appliances, or plumbing. The inspection requirement helps a potential buyer know what they are getting into, and deters unscrupulous (or uninformed) speculators from buying, and then reselling, substandard property.

Working with the Private Sector. Some in the real estate industry have criticized the City for pursuing these modest regulatory approaches. They rightly point out that the private market very effectively provides a wide range of housing for residents of diverse incomes, family size, and residential need. They also point out that most real estate agents, investors and contractors live in our community and have a self-interest in improving the quality of our neighborhoods. However, the City has an important role to play in ensuring that all those in the housing industry interact fairly and not take advantage of the situation of depressed home prices and financially stressed residents. Housing is a capital good, and economic theory says there are two ways to make money off capital: 1) invest in it so that it produces income over time either through rents or future resale; or 2) exploit the the resource by taking income for a short period until the capital (i.e. the real estate) is run down. The existing residents of Owosso have a legitimate role in trying to push the housing market more to the former rather than the latter.

Keys to Success. The City of Owosso seeks to establish a partnership with the local housing industry to ensure that the housing available to our residents is safe, and to protect and promote the character of our neighborhoods. There are three keys to establishing such a successful partnership:

1. Clear rules so that everyone involved with housing--owners and sellers, landlords and tenants, and investors, real estate agents, and contractors--knows what to expect when doing business in Owosso. This also helps avoids anyone being taken by surprise or from any party taking advantage of another.
2. Professional Staff to be knowledgeable and available to work with all segments of the real estate industry and housing consumers. Recently, the City has hired a full-time building official to enforce housing codes (among other duties) and serve as resource person. He joins a professional planner and an experienced housing program staff. Finally, the City has used community policing grant funds to augment its public safety staff who also works to ensure that housing is safe and resident behavior legal.
3. Partnership depends on helping the private sector best serve the public good. Regulatory tools are the most easy for most local governments to reach for, but Owosso has been cautious in enacting ordinances, careful in applying them, and always open to feedback from residents and the real estate industry in how best to apply them. The other tools available to government are financial, and the City has received some State funds to operate programs to assist homeowners rehabilitate their homes and investors develop downtown housing. Hopefully, we can look for other useful tools to help rebuild Owosso.

The residents of Owosso have strongly voiced their concern about maintaining the quality of housing in our community and making our neighborhoods safe and desirable places to live. To achieve this objective, we rely on the private housing market. The City has a responsibility to prevent the worst abuses and excesses in the housing market. It also has a role in working with those members of the housing industry that share the goals of the community in making Owosso a great place to live for all its residents.