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Foreclosures Taking a Big Toll on City Finances, Poll Shows
Nearly two-thirds of the cities recently polled by the National League of Cities (NLC) reported that foreclosures had increased in their communities over the past year.
“Mortgage foreclosures are causing havoc in our communities,” said Cynthia McCollum, president of the NLC. “Cities are already seeing reductions in their revenues at the same time that more services are needed to address the many related problems caused by the foreclosures.”
Released on March 11, the results of the online/e-mail survey represent more than 200 cities.
Of particular note in the findings is the ripple effect that the housing crisis seems to be having on city finances. One of three reported that funding for programs and projects declined in the past year.
One-third of the cities also reported an increase in abandoned or vacant properties and other forms of blight. “In one community in Charlotte, N.C., 115 out of 123 homes were boarded up,” said McCollum. “Where there are widespread foreclosures, cities must ensure the safety of the residents still living in the community, must keep the grass mowed and stop vandalism.”
The NLC poll shows that the housing crisis is disproportionately affecting certain residents, with half of the cities reporting that the crisis is having an impact on lower-income families; one-third seeing problems for families headed by single parents; and one in five citing a heavy impact on seniors and people of color.
“We know that homeownership strengthens our communities, but the housing crisis is making it more difficult to achieve this goal,” said McCollum. “Overall, financial stability of millions of Americans is in jeopardy.”
 Mark Your Calendar for the 2008 NAHB Legislative Conference
The 2008 NAHB Legislative Conference provides a unique opportunity for builders to meet with their members of Congress, discuss the issues that affect their business and bottom line and establish a lasting relationship with their elected federal officials.
The day-long conference on Wednesday, April 30 coincides with the NAHB spring board meeting in Washington, D.C.
Builders are encouraged to travel to the nation’s capital to urge their representatives and senators to support policies that stabilize housing, restore confidence in the credit markets and bolster the nation’s economy.
Members of Congress are being urged to:
- Support a temporary home buyer tax credit to boost sales, reduce excess inventory in housing markets and halt the dangerous erosion of house prices
- Enact Federal Housing Administration modernization to assist first-time and moderate-income home buyers and alleviate the mortgage credit crunch
- Adopt comprehensive reform legislation for Fannie Mae and Freddie Mac to enable these financial institutions to provide badly needed liquidity to the mortgage market
- Expand the mortgage revenue bond program to help strapped borrowers refinance existing loans
- Allow businesses to carry back net operating losses for five years to save jobs and help them weather the economic storm
For more information and to register for NAHB’s 2008 Legislative Conference, click here; or e-mail Molly Murray at NAHB, or call her at 800-368-5242 x8282.
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