Fine Banks for Neglecting Foreclosed Homes?

By | May 24, 2012 |

San Diego Councilmember David Alvarez on efforts to fine banks if they neglect homes to ensure homes are well maintained.

The Property Value Protection Ordinance, sponsored by Councilmember David Alvarez was highlighted on the “Willis Report” on Fox Business National. During the interview, Councilmember Alvarez did an excellent job of highlighting the blight issue as a result of banks not maintaining homes that they foreclose on. These vacant homes are a problem for communities because they lower property values and become health and safety issues. Data from the CPI and ACCE Report, “Foreclosure: The Costs Communities Pay” was highlighted during the show, including the estimated loss to local governments: $134 million-$855 million. These problems are the responsibility of the banks to maintain and not our local government!

Fox also highlighted the poll we did in April showing 70% of San Diego voters favor this ordinance (see below).

To recap, the Property Value Protection Ordinance would:

  • create a registry of homes in foreclosure to track banks that own foreclosed homes
  • and fine banks up to a $1000 a day, if they fail to maintain foreclosed homes up to code