Home foreclosures continue to be a problem for cities and neighborhoods. The quality of life in many neighborhoods around the state is decreasing as a result of vacant homes and the sight of boarded windows, neglected property maintenance, displaced renters, and fears about crime.
Cities are facing a wide variety of new and additional costs as a result of foreclosures, including:
At the same time, cities are having revenue problems as a result of foreclosures and the dramatic slowdown in housing construction and home sales. Cities are facing delinquent and reduced property tax collections and lost fees. State sales and income tax returns are lower. Revenues from taxes on real estate transactions are down. Cities have seen significant decreases in building permit fee revenues.
Cities are undertaking initiatives to prevent further foreclosures, manage the properties that have been foreclosed, and recover properties that have fallen into disrepair in their community.
LMC policy analysis staff members provide analysis, research, and reporting on a variety of issues and trends affecting cities. They are available to answer your questions or to direct you to additional resources.
Contact Lena Gould
(651) 281-1245 or (800) 925-1122
Contact Rachel Walker
Policy Analysis Manager
(651) 281-1236 or (800) 925-1122