Restoring Prosperity: Rising to the Foreclosure Challenge

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Presentation by HAPHousing and the Warren Group on the issue of foreclosure in Springfield and Western MA. Data on the affects of foreclosed properties and action steps.

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Restoring Prosperity: Rising to the Foreclosure Challenge

  1. 1. This information was presented at a breakfast meeting in Springfield September 14, 2010 by: Peter Gagliardi, Executive Director HAP Housing Additional data presented by: Mary Suter Sales Manager, Data Solutions The Warren Group Full text of this presentation will be posted here shortly
  2. 2. Welcome
  3. 3. Why Are We Here? <ul><li>To explore an issue threatening our region </li></ul><ul><li>To begin to understand the magnitude and potential consequences of the problem </li></ul><ul><li>To understand steps already taken </li></ul><ul><li>To explore what else needs to be done </li></ul><ul><li>To in motion steps to address the threat </li></ul>
  4. 4. The Wave of Foreclosures <ul><li>Map showing all addresses which were taken by a lender from 2007 to date. (Western Mass? Hampden County? Springfield? – Jennifer is working on this. </li></ul>
  5. 5. Look at Data
  6. 6. Hold for Warren Group
  7. 7. Hold for Warren Group
  8. 8. Hold for Warren Group
  9. 9. Hold for Warren Group
  10. 10. Hold for Warren Group
  11. 11. Hold for Warren Group HAMPDEN 7.43% HAMPDEN 5.59% HAMPDEN 6.44%
  12. 12. Hold for Warren Group
  13. 13. Hold for Warren Group
  14. 14. Hold for Warren Group
  15. 15. Hold for Warren Group
  16. 16. Focus on Springfield From Data Digest, Pioneer Valley Planning Commission: <ul><li>Springfield had highest foreclosure rate in Valley </li></ul><ul><ul><li>2.5 times rate for the region </li></ul></ul><ul><ul><li>Nearly 4 times rate for the state </li></ul></ul><ul><li>Of 30 Census Block Groups with highest rates in the region, 29 were in Springfield </li></ul><ul><li>Springfield and Holyoke had 2/3 region’s total foreclosures </li></ul><ul><li>Highest levels of sub-prime loans, found typically in urban core and minority communities. </li></ul>
  17. 17. Foreclosure Petitions Filed for Springfield 2007-2010
  18. 18. Foreclosure Deeds Filed for Springfield 2003-2010
  19. 19. REO Properties <ul><li>As of 9/8/10, REO properties in Springfield totaled 337 </li></ul>
  20. 20. Mapping the Damage Foreclosures in Target Neighborhoods
  21. 21. Mapping the Damage Tax Title Cases in Springfield
  22. 22. Mapping the Damage Blighted Properties in Target Neighborhoods
  23. 23. The View on the Ground One Block on Quincy Street
  24. 24. Even Forest Park Is Affected
  25. 25. Abandoned Property is NOT a Victimless Crime <ul><li>In the early 90’s, one owner filed bankruptcy and abandoned 7 buildings in Springfield with a total of more than 200 units while owing the City more than $500,000 in back taxes. He left a similar legacy in Holyoke. </li></ul>
  26. 26. Springfield’s Old Hill
  27. 27. One in Ten Residential Parcels Were Vacant Lots or Boarded Buildings
  28. 28. Wreckage Wrought by Prior Foreclosures
  29. 29. The Good News Today Springfield’s vigorous response
  30. 30. The Good News Today Springfield’s vigorous response
  31. 31. The Good News Today Springfield’s vigorous response
  32. 32. The Good News Today Springfield’s vigorous response
  33. 33. The Good News Today Springfield’s vigorous response <ul><li>Citi Stat/ do we have a graphic from Citi Stat that would demonstrate what hey can do? Jennifer or Sarah? – Jennifer getting details. </li></ul>
  34. 34. The Good News Today Springfield’s vigorous response
  35. 35. Our Response is Still Outweighed by the Magnitude of the Crisis <ul><li>The numbers are far beyond what we can do with public resources alone </li></ul><ul><ul><li>Number of foreclosure deeds has been rising </li></ul></ul><ul><ul><li>REO properties remaining unsold is increasing </li></ul></ul><ul><li>Properties are not “aging” well during the foreclosure process </li></ul><ul><li>Investors with cash have been buying up properties; </li></ul><ul><ul><li>Not all are fixed up and rented or re-sold </li></ul></ul><ul><ul><li>Some have become part of large pools </li></ul></ul><ul><li>Bold revitalization plans are threatened by increased blight </li></ul><ul><ul><li>State Street Corridor and the South End Initiative </li></ul></ul><ul><li>Coordination of overlapping initiatives is lacking </li></ul>
  36. 36. Why Do We Care? <ul><li>“ Metropolitan areas here and abroad are the unequivocal engines of national prosperity, because they concentrate at an unprecedented level the assets that matter.”* </li></ul><ul><li>“ Our top 100 metropolitan areas alone take up only 12% of our land mass but harbor two thirds of our population and generate 75% of our GDP.”* </li></ul><ul><li>“ Incredibly, 96% of the economic output of Massachusetts is generated by the four metropolitan areas in the state that rank in the top 100 nationally.” * </li></ul><ul><li>NOTE: Springfield is the core city of one of the 100 largest metros in the United States. </li></ul>*Bruce Katz Vice President and Director, Metropolitan Policy Program
  37. 37. Why Do We Care? <ul><li>To quote Dean John Mullin from the University of Massachusetts,  &quot;There is no great region without a great center city, there is no great center city without a great downtown and there is no great downtown today without the presence of medical and educational institutions&quot;. </li></ul>
  38. 38. Why Do We Care? <ul><li>“ The recent housing crisis threatens to undo the progress made in communities over the past 20 years.” </li></ul><ul><li>“ The issue of vacant and abandoned properties threatens the very sustainability of many communities.” </li></ul><ul><li>“ REO & Vacant Properties / Strategies for Neighborhood Stabilization” </li></ul><ul><li>A Joint Publication of the Federal Reserve Banks of Boston and Cleveland and the Federal Reserve Board </li></ul>
  39. 39. What Are Our Obstacles? <ul><li>Federal Reserve Bank of Boston: 2009 Annual Report / </li></ul><ul><ul><li>“ Lessons From Resurgent Cities” </li></ul></ul><ul><ul><ul><li>Leadership, collaboration </li></ul></ul></ul><ul><ul><ul><li>Transformation of the economy </li></ul></ul></ul><ul><ul><ul><li>Development of human capital </li></ul></ul></ul><ul><ul><ul><li>Extension of prosperity to all </li></ul></ul></ul>
  40. 40. What Can We Do? <ul><li>Lead: take on the issue of neighborhood stabilization </li></ul><ul><li>Collaborate: bring our many efforts together under a big tent, bringing together public, private, and community </li></ul><ul><li>Recognize housing and the fabric of our communities as economic development issues </li></ul><ul><li>Continue to build upon the progress of the past few years </li></ul>
  41. 41. Join Us on November 10! Bring Colleagues! <ul><li>Text </li></ul><ul><li>Text </li></ul>
  42. 42. Next Meeting <ul><li>We invite you to join us on December 14 th ! </li></ul>

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