Home foreclosures continue to be a problem for cities and neighborhoods. The quality of life in many neighborhoods around the state is affected by 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 delinquent and reduced property tax collections and lost fees. Revenues from taxes on real estate transactions are down. Some cities have seen 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.