Update 12/18/12: San Diego Mayor signs law to end blight of abandoned foreclosures. Read more here.
The foreclosure crisis is costing local governments hundreds of millions of dollars, and neighboring homeowners billions of dollars. Each foreclosed home costs between $5,000 and $34,000 in maintenance, inspection, fees, and public safety calls. Foreclosures harm the values of all homes in a neighborhood, deter potential home buyers, and are a blight that can lead to illicit activity. The City/County also loses property tax revenue as values plummet. The loss of municipal revenue puts public services at risk, further destabilizing neighborhoods that have already been decimated by the crisis.
A Property Value Protection Ordinance, proposed by CPI and ACCE, is aimed at reducing the negative impacts of foreclosures on surrounding neighborhoods and the city budget. ACCE and CPI’s joint study found that 57,000 foreclosures are expected in the city by next year, costing homeowners $19 billion in lost property value. The proposed ordinance, similar to those enacted in 75 California cities including Chula Vista, is a key part of a state and national effort to hold Wall Street banks accountable for the damage caused by the foreclosure crisis.
For a factsheet about the proposed ordinance, click here.
Wall Street recklessness, and a lack of oversight in predatory lending practices are to blame for this crisis and its devastating consequences. Making banks financially accountable for their neglected foreclosed properties could generate revenue to keep libraries open, teachers teaching, EMTs on duty, and other public services functioning.
Our neighborhoods deserve better.