Major hospitals across the U.S. are getting more involved in the redevelopment of their neighborhoods and are creating new partnerships to get it done.  The Memphis Medical Center Blight Initiative is one of them, recognized as a national “best practice” for attacking blighted properties, and best of all, it has inspired new programs to attack Memphis’ 10,000 vacant houses and 300 vacant apartment complexes.
In the Medical Center Blight Initiative, litigation is the leverage for change.

Attorney Steve Barlow, who leads the program with Memphis Medical Center director Beth Flanagan, said: “We knew we had to find better solutions to problem properties.  We turned to litigation because nothing else was getting it done.  Owners were refusing reasonable offers, leaving properties vacant and not boarded up.  When that is multiplied by every problem property in the community, it is a real crisis.”

Two years ago, it became clear to health care officials that the condition of properties in the Medical Center area was a detriment to ambitious plans to leverage Memphis’ assets to expand the economy and develop new medical niches.  The deteriorating properties adjacent to the Medical Center were the breeding grounds for crime and sent the message to health care workers that it was no place for them to live.  

As a result, two years ago, the Memphis Medical Center decided to target five abandoned multi-family properties in the first year and 10 multi-family and single family properties in the second year.  With funding from Methodist Hospitals, George Cates, and Hyde Family Foundations, the Medical Center Blight Initiative led to “institutionalizing civil litigation as part of our codes strategy,” said Mr. Barlow.  “Normal code action can only get you so far.”

What was surprising was how often owners were unaware that they still owned properties, he said.  “The most frequent reason is that owners walked away from foreclosure notices so they didn’t think they owned the property any more.”

The possibility of litigation in Judge Larry Potter’s Environmental Court also gets the attention of out-of-town owners.  “If they find the real cost to maintaining the vacancy, it inspires them to move up the property on the list of priorities,” Mr. Barlow said.  “It helps to get people focused on getting something done.”

The litigation is possible as a result of the 2007 Neighborhood Preservation Act amendment that allowed for a “private cause of action to abate public nuisance.”  Mr. Barlow and another attorney filed a series of 10 pro bono lawsuits on behalf of Memphis residents and homeowners.  “We were getting results on a small scale, but we were looking for larger scale applications,” he said.  

The Medical Center Blight Initiative became that application, and that initial “hit list” was completed this year.  Its success led to City of Memphis to hire Mr. Barlow to attack broad dimensions of Memphis’ blight problem.  Acting on behalf of the administration of Mayor A C Wharton, Mr. Barlow is targeting 500 problem properties a year, often through referrals from city divisions like community enhancement, fire services, and police services.  

“They give us referrals of the worst of the worst,” said Mr. Barlow.  “The CDCs deserve a great deal of credit too.”

Ms. Flanagan said the Medical Center Blight Initiative “made an impact quickly.”  The Hyde Foundations’ involvement was particularly important, because “it gave us credibility and it was a leveraging tool for support.”  The Foundation saw the potential and because of its involvement, people feel that their ideas are being heard and can be transformational for the community.

“Now, we’ve been the model for other cities, we’re on panels, and we’re recognized as doing something that sets the standard,” said Ms. Flanagan.  “It’s helped to put Memphis on the map when it comes to dealing with vacant properties and abandonment.”