Fighting Back Foreclosures Presentation 9 7 2010


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Fighting Back Foreclosures Presentation 9 7 2010

  1. 1. FORECLOSED NEIGHBORHOODS AND FRAGILE STREETS Codman Square and the National Crisis
  2. 2. <ul><li>CSNDC staff had a sense that our service area was one of the neighborhoods hardest hit by foreclosures in the city. </li></ul><ul><li>In order to better respond to and address the foreclosure crisis faced by our neighborhood, Codman Square Neighborhood Development Corporation (CSNDC) sought to first understand the impact of this crisis with clear and concrete data . </li></ul>
  3. 3. Background Information <ul><li>Service Area: </li></ul><ul><li>Dorchester zip code 02124 and targeted streets in 02121. </li></ul>
  4. 4. Goals of Research <ul><li>CSNDC wanted to find out: </li></ul><ul><ul><li>How many foreclosures are happening in our neighborhood </li></ul></ul><ul><ul><li>Have we reached the peak of the crisis </li></ul></ul><ul><ul><li>What are some of the reasons for foreclosure </li></ul></ul><ul><ul><li>Who is buying foreclosed properties, and what is happening to that housing stock </li></ul></ul><ul><ul><li>Are there any foreclosure “hot spots” in our neighborhood </li></ul></ul>
  5. 5. State, City, and Local Foreclosure Deeds (A foreclosure deed is the final stage in the foreclosure process.) Number of Foreclosure Deeds per Year   2007 2008 2009 Massachusetts 7653 12,430 9269 Boston   703 1215 776 Dorchester 348 628 358 Codman Square Service Area 128 277 172
  6. 6. How many foreclosures have occurred in Codman Square? 2007: 128 foreclosure deeds 2008: 277 foreclosure deeds 2009: 172 foreclosure deeds
  7. 7. Is the Foreclosure Crisis Subsiding? <ul><li>Codman Square and Dorchester foreclosure deeds have gone down since 2008. </li></ul>However, foreclosure petitions have gone up. Families are still at risk.
  8. 8. Is the Foreclosure Crisis Subsiding? <ul><li>Foreclosure deeds in CSNDC’s service area are down in 2009, but the percentage of all Dorchester foreclosures located within CSNDC’s service area is increasing . </li></ul><ul><li>Codman Square Foreclosures as a Percentage of Dorchester Foreclosures: </li></ul>2007 2008 2009
  9. 9. <ul><li>Families are still at risk of losing their homes. </li></ul><ul><li>CSNDC’s service are seems to be recovering more slowly than other areas of the city. </li></ul><ul><li>Stabilization work is far from over . </li></ul>
  10. 10. <ul><li>While the foreclosure crisis shows signs that it has peaked in terms of the number of foreclosure deeds issued, the lasting impact that these foreclosures will have on our neighborhood is still uncertain. </li></ul><ul><li>Why? Let’s look at what has been happening with the foreclosed housing stock… </li></ul>Sustained Impact of Crisis
  11. 11. What’s happening to the foreclosed stock? <ul><li>111 (64.5%) were sold out of foreclosure. </li></ul><ul><li>61 (35.5%) were still Real Estate Owned through the beginning of 2010.  </li></ul>172 foreclosure deeds issued in CSNDC’s service area in 2009
  12. 12. Who’s buying? <ul><li>In 2009, 42% of all properties purchased out of foreclosure in CSNDC’s service area were bought by investors .” </li></ul><ul><li>According to building permit records, investors applied for fewer permits and spent significantly less money on repairs than individual buyers in CSNDC’s service area in 2009. </li></ul>Who is an investor? CSNDC defined an investor as an individual or organization that has purchased 3 or more foreclosed properties in CSNDC’s service area between 2007 and 2009.
  13. 13. Who’s Buying? <ul><li>“ Without investment, foreclosed properties deteriorate and weaken the neighborhood housing market.” </li></ul><ul><li>-Policy Link, “When Investors Buy Up the Neighborhood: Preventing Investor Ownership from Causing Neighborhood Decline.” </li></ul>
  14. 14. <ul><li>In this map, which plots all foreclosures from 2006 through November 2009, we begin to see areas with higher incidences of foreclosure, although nearly all of our service area has been impacted by this crisis. </li></ul><ul><li>(Map created by MAPC, 2010). </li></ul>
  15. 15. Foreclosure Hot Spots and Fragile Streets <ul><li>By looking at foreclosures at the street level, CSNDC can begin to pinpoint hotspots and areas that could benefit from specialized support. </li></ul><ul><li>18 streets (5% of all streets in CSNDC’s service area) had 3 or more foreclosures in 2009. </li></ul><ul><li>On 14 streets, 2009 foreclosure deeds represented more than 10% of the housing stock . </li></ul>Multiple Foreclosures: Significant Percentage of Housing Stock:
  16. 16. Fragile Streets <ul><li>Street has had three or more foreclosure deeds between 2006 and 2009, and </li></ul><ul><li>more than 25% of the housing stock along the street has gone into foreclosure between 2006 and 2009, and </li></ul><ul><li>the street is experiencing other stressors and signs of decline. </li></ul>
  17. 17. <ul><li>10-12 Whitfield Street was purchased out of foreclosure, but is not well taken care of and is likely vacant. </li></ul>Whitfield Street
  18. 18. <ul><li>Condo Units in this Browning Avenue home are in various stages of foreclosure. Unfortunately, Browning avenue is plagued by a number of privately-owned, ill-cared for vacant lots. This home sits next to 3 large vacant parcels. </li></ul>Browning Avenue
  19. 19. Fragile Streets <ul><li>27% percent of the Whitfield Street housing had gone into foreclosure (foreclosure deed) between 2007 and November 2009, many in a concentrated area. </li></ul><ul><li>  Disinvestment and low owner occupancy </li></ul><ul><li>Browning Ave has lost nearly 52% of its building stock since 1933. </li></ul><ul><li>32% of the housing stock has gone into foreclosure (foreclosure deed) between 2006 and January 2010 (8 out of 25 homes; many of those homes were recently converted condo units). </li></ul><ul><li>Whitfield Street </li></ul><ul><li>Browning Avenue </li></ul>
  20. 20. Recommendations: Responding to Foreclosures <ul><li>Look into receivership programs. </li></ul><ul><li>Focus on enforcement and oversight to strengthen the city of Boston’s existing foreclosed and vacant property registry. </li></ul><ul><li>Increase the transparency of Foreclosure/REO sale transactions. </li></ul><ul><li>Strengthen current systems for monitoring and tracking foreclosed, blighted, and investor-owned properties. </li></ul>
  21. 21. Recommendations: Preventing Irresponsible Investor-Ownership <ul><li>Require investors to set and keep a timeline for the rehabilitation and reoccupation of vacant or foreclosed properties. </li></ul><ul><li>Incentivize large-scale property renovations through new or improved funding programs. </li></ul><ul><li>Provide more financial resources, such as low-interest rehab loans through the Housing Services Rehab Program, for local landlords of both owner-occupied and investor-owned homes to rehabilitate and manage their properties. </li></ul><ul><li>Provide community-wide incentives for homebuyers and investors to rehabilitate and maintain their properties. </li></ul>
  22. 22. Recommendations – Stabilizing Fragile Streets <ul><li>Encourage the city to expand its FIT areas to fragile streets in our neighborhood. </li></ul><ul><li>Support organizing and resident engagement work around foreclosures and property upkeep standards, especially in fragile street neighborhoods. </li></ul><ul><li>Work to more aggressively purchase and rehabilitate foreclosed properties in targeted neighborhoods within our service area. </li></ul><ul><li>As the homeownership market recovers, the city should target Home Again resources to fragile streets. </li></ul>
  23. 23. CODMAN SQUARE NDC 587 Washington Street, Dorchester MA 02124 617-825-4224