Tale of two – The cost – Part one

June 26, 2017 at 9:17 pm Leave a comment




Part One– https://thatwoman.wordpress.com/2017/05/11/a-tale-of-two-city-houses-downing-of-quality/
Part Two– https://thatwoman.wordpress.com/2017/05/13/a-tale-of-two-continued-lorains-cast-offs/
Part Three – https://thatwoman.wordpress.com/2017/05/16/a-tale-of-two-a-tale-of-woe-lorain/
Part Four- https://thatwoman.wordpress.com/2017/05/22/a-tale-of-two-the-who-the-how-why/
Part Five- https://thatwoman.wordpress.com/2017/05/24/the-tale-of-two-the-how-supporting-cast/
Part Six- https://thatwoman.wordpress.com/2017/05/29/a-tale-of-two-the-why-land-of-iz-not-woz/
Part Seven- https://thatwoman.wordpress.com/2017/06/19/a-tale-of-two-do-nowt-get-nowt-lorain/

If nothing else the previous 7 posts in the series has confirmed there has been an ongoing problem for 12 years ( or more) the houses and their ONGOING problems may have gone through 3 administrations heaven knows how many different councils and council members but with ONE Building Dept and the way of non accountability. The only people cited who follow through seem to be the already law abiding property owners, the rest seem to “play the property / enforcement game – IN MY OPINION- based on the research over the years.

There is a cost to all this diseased, decrepit, dilapidated housing and in 2005 – 3 years before the sub-prime mortgage debacle The National Vacant Properties Campaign with the support of the Environmental Protection Agency came up with a 24 page report – 12 years ago just about the time our city was starting to go belly up…
https://www.smartgrowthamerica.org/app/legacy/documents/true-costs.pdf
the above report is really worth the read and government with Community Development and Building and Planning surely should have accessed the report


If you ask any Lorainite in the year 2017 they will say this photo from the 2005 report is a familiar site , especially in the 44052 44055 where our poster child houses are located

2005

Cities must address the increasing number of vacant properties, not only because of the negative impact they have on the surrounding community, but because of the numerous costs they impose. They strain the resources of local police, fire, building, and health departments, depreciate property values, reduce property tax revenue, attract crime, and degrade the quality of life of remaining residents. In summary, vacant and abandoned properties “act as a significant fiscal drain on already strapped municipalities, requiring disproportionate municipal resources, while providing little or no tax revenue to municipal coffers.”

As the years passed and we continued our downward slide and lack of enforcement there were other reports written.
http://www.cleveland.com/cleveland-heights/index.ssf/2015/08/abandoned_homes_affect_communi.html
http://www.cleveland.com/rocky-river/index.ssf/2015/08/rocky_river_westlake_hide_vaca.html
Then we get to the 2017 White paper on Blight another must read

For a single home, one can attempt to calculate these costs.
Using the following conservative assumptions the foreclosure of a home will cause a loss of value of at least $130,000 as a result of the following:
1. The home if owner-occupied would be worth $200,000, which is just under the national mediansales price of $235,000. The loss of value to the
home itself is 38 percent, the amount expected by buyers and in the midpoint of the range ofestimates. This is a loss of value of $76,000.

2. Assuming 21 houses within 500 feet. This is
a conservative assumption based on houses that are roughly one-fourth of an acre that have100x100 foot square plots. Thus, there are five
houses on both sides of the affected property as well as another 11 across the street. This number could be substantially higher in urban settings
(condominiums or row houses) and also lower for rural settings or areas where there are not uniform plots or housing on both sides of the street. Each
of these houses experiences a 1 percent decline in home value. For the $200,000 home, that is $2,000. That is a loss of value of $42,000.

3. There are another 12 houses beyond 500 feetbut that are still affected. Recall some studies used the one-eighth of a mile (660 feet) while others showed effects all the way out to 1,000 feet and even further in some to half a mile. For this estimate we are assuming an impact of another 300 feet in all directions, which is conservative given other findings. These impacted houses have a 0.5 percent decline in value, or $1,000. That is a
loss of value of an additional $12,000.

For those who find the methodology of studies that find losses of
2 percent in value of neighboring properties closer and 1 percent
of those farther away more compelling, then the total losses
jump to $184,000. In this scenario the property loss suffered by
neighbors is actually greater than that suffered by the foreclosed
home itself!

http://www.communityblightsolutions.com/files/CBS_White_Paper_2017.pdf
And the latest complaint in Lorain is 330 W 9th Street.
This too was a Fannie Mae dump selling in 2010 for $44,000.00 and dumped by Fannie Mae to a Bayvillage resident just 7 months later for $13,500. and there you have it proof once again the system sucks!!!!

The typical foreclosed home imposes costs of more than $170,000. Approximately $85,000 of this total is directly attributable to a property being vacant and the condition in which that vacant house is kept.
 Over half the total cost of a foreclosure’s impact on neighboring properties comes from the fact that the property is abandoned.
 Foreclosures that involve vacant properties lead to increases in violent crime.  The impact of vacancy on crime increases as the property stays vacant for longer periods, likely plateauing at between 12 and 18 months.
 Vacant buildings are major fire hazards; vacant residential buildings account for one of every 14 residential building fires in America.

Yes there is a municipal cost, a cost to property worth for the surrounding houses BUT there is also a cost I will explore in the next post to the taxpayer of Lorain for the system that enables this system- salaries, vehicles, law courts………. coming up in part two of the broken system. We can’t say we weren’t warned of course we also paid in our taxes for the costs of the reports, whitepapers and studies………..

To be continued …………….

Advertisements

Entry filed under: a Cow -elle opinion, Charleston Village, city of lorain, hell is other people. Tags: , , , , , , , , , .

A tale of two- do nowt – get nowt- Lorain Tale of the Two- The Cost Part 2.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Categories

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 186 other followers

June 2017
M T W T F S S
« May   Jul »
 1234
567891011
12131415161718
19202122232425
2627282930