The July 17 deadline for cities and nonprofits to apply for their share of nearly $2 billion in Neighborhood Stabilization Program funding. A new report from PolicyLink, a national research and action institute advancing economic and social equity, detailing how some states and cities are dealing with foreclosure may provide some inspiration for those who have still not applied and hope for communities suffering from blight or plummeting property values.
“As foreclosed properties fester, communities are reeling from blight, crime, and property value decline,” said Kalima Rose, co-author of the report and Director of the PolicyLink Center for Infrastructure Equity. “Thankfully, some proven strategies are showing communities how to reclaim their housing stock and get their cities back on track.”
The report, “Reclaiming Foreclosed Properties for Community Benefit,” features several of the most promising practices and stories from communities around the nation including:
Creating Community Land Trusts
Land trusts have been very successful at securing vacant properties and ensuring they remain affordable for years to come. For instance, in Providence, RI, city and state leaders acquird foreclosed properties in two of the hardest-hit areas and put covenants on their sale to ensure they remain affordable for decades.
Marketing Foreclosed Homes and Offering Tax Incentives to Buyers
Some cities whose housing markets are still functioning have been able to attract new buyers to foreclosed properties. Boston offer potential buyers a trolley ride tour of foreclosed properties while Los Angeles has hired marketers to tour the benefits of buying foreclosed homes. Other cities offer low-interest loans or tax incentives to attract buyers.
Increasing the Cost for Owning Vacant Foreclosed Properties
Owners of foreclosed properties are often large investors waiting for the market to revive. Meanwhile, their properties fall into disrepair. By imposing taxes or fines on properties remaining vacant for more than a year, some cities and towns can change the incentive structure making it easier to sell the property to someone willing to fix it up and live in it.
Rehabbing or Demolishing Vacant Properties
In Cleveland, OH, community leaders have started a pilot program to identify properties in six neighborhoods that can be rehabbed and demolish ones that cannot. Getting new homeowners into salvageable properties and saving the upkeep and repair money on non-salvageable properties reduces the burden for local government. Other cities having excess housing stock and low demand are following suit.
In addition to the new report, PolicyLink’s “Equitable Development Toolkit” is a key resource for community leaders, advocates and residents advocating for more equitable communities.
Related posts:
- Cities in the Sunbelt see the most foreclosure activity in 1Q 2009
- Squatters and Foreclosure: Who Lives Here?
- One million foreclosure landmark a boon for some buyers
Related posts:
- Cities in the Sunbelt see the most foreclosure activity in 1Q 2009
- Squatters and Foreclosure: Who Lives Here?
- One million foreclosure landmark a boon for some buyers
