Title
Dept/ Agency: Offices of Municipal Council/City Clerk
Action: ( ) Ratifying (X) Authorizing ( ) Amending
Type of Service: Supporting the use of eminent domain
Purpose: Calling for an investigation of the use of eminent domain as a municipal tool stem the tide of housing foreclosures for community stabilization
Additional Information:
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Whereas, WHEREAS the economic housing and mortgage crisis caused by the big Wall Street banks has devastated our communities: Nine million families have lost their homes to foreclosure; nine million Americans have lost their jobs; 13 million families now owe more on their mortgages than their homes are worth; and state and local governments that have seen their property and sales tax receipts plummet are facing crippling budget crises;
WHEREAS foreclosures harm all homeowners and erode the property tax base: The foreclosure crisis has caused a ripple effect where each new foreclosure brings another distressed property on the market, pushing prices lower, and harming the value of all homes within a neighborhood;
WHEREAS homes in foreclosure experience a 22% decline in value on average;
WHEREAS declining home values increase municipal budget deficits, erode the tax base placing an undue burden on property owners, and force cuts to essential local services and jobs that support communities;
WHEREAS resetting mortgages on underwater homes to fair market value to fix the housing crisis is critical to our economic recovery and creating jobs: The overhang of underwater mortgage debt is one of the primary drags on economic recovery. Resetting mortgages on underwater homes to fair market value would reduce foreclosures and stabilize the real estate market to create revenue and jobs in our city;
WHEREAS underwater mortgages are at significantly greater risk of going into foreclosure: Research shows that homeowners who are severely u...
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