Teachable moment? Austin investors: Two properties; one owner; and the BSC: Can these properties be saved?

[Carolyn Lorence]

How would you solve this problem?  Let me know your thoughts!

I’ve had my eye on two boarded up, deteriorating residential properties built in 1919 and 1922, next door to each other, each on approx. ¼ acre lots, nice Central Austin neighborhood, but these two have several structural and utility problems and are the blight of the neighborhood. Given the information that follows, would you pursue these properties? And if so, what would your course of action be? Demolition and rebuild? Single family, condos or multifamily? How would the fines be negotiated with the BSC?

If not worth pursuing, what is the likely outcome? The owner isn't likely to pay the fines; the city has not yet moved to demolish the properties.

My research found that these properties are owned by one individual, purchased together from the same previous owner in April, 1998. One is a single family with detached garage / outbuilding possible garage apartment; the other is listed as a triplex with detached garage/outbuilding. A common alley separates the lots through the block to the next street.

The current owner address is in the same neighborhood, is a self-employed professional, who has had past state and federal tax lien issues in the triple digits. The properties have had several code violations ultimately leading to emergency board and securing the structures as far back as 2004, including removal of tenants, and both properties have legal binding orders from the Building and Standards Commission in effect on March, 2005 and October, 2008.The owner is being assessed a fine of $500 per week on each property until resolution. If the properties are sold, the fines and liens of course transfer. The property taxes have been paid on time and are current.

Here’s a breakdown of values from property tax statements and accumulated unpaid fines assessed by the Building & Standards Commission:

Past sales within neighboring and subject properties zip code: November, 2013 – September 11, 2014: