Sunday, February 15, 2009

The Effects of Distressed and Abandoned Properties

How does Caledonia Construction Contributes?

Caledonia Services and activities

Total property rehabilitation, building retrofit, building envelop improvement, energy efficient replacement windows, building weatherization, REO clean out and secure

The effects of distressed and abandoned properties

Distresses and abandoned properties in inner city areas should be quickly rehabilitated to reduce their devastating effects on people's lives, to enhance the stabilization of depressed communities, and to aid in the revitalization of older cities and towns.

The abundance of distressed and abandoned properties, a fall out from the foreclosure crisis, has continued to have a devastating effect on people's lives.These properties have adversely affect property values curtailing refinancing opportunities at a time when interest rate are historically very low. They have cause the blighting of once rejuvenated areas of many inner city communities. Some of these areas such as the Dorchester neighborhood of the city of Boston were actually on a up swing after years of disinvestment and now they are exceptionally challenge because of the current crisis.

The government Neighborhood Stabilization Program is a necessary tool in the effort to stabilize these depressed communities. Indeed, it is a vital tool that will provide economic and social benefits in the forms of job creation, housing choice and environmental improvement. It is expected that NSP will generate immediate construction activities creating over 90,000 jobs in skilled and unskilled trades. Most of the job will be generated in in low and moderate income neighborhoods where they are most needed. The NSP will create the housing options ranging from very low income to middle income a combination necessary for vibrant inner city
communities. And, third, the environment improvement will be measurable. The improvement work will be energy efficiency focus, it will utilize existing properties thereby rejuvenate abandoned and distressed properties bringing them back to useful life.

The long term benefits of rehabbing these distressed properties are the revitalization of older section of cities and towns. In truth, many of these areas have long suffered disinvestment and neglect, revitalizing them could be what the national economy needs at this time to create jobs needed to enhance its economic recovery goals.

1 comment:

Nudge said...

Hi BarronREP .. you visited my blog and left some nice comments. I'd like to return the favor. Wasn't sure if you requested email followup on your post, so here is the same one I left there:

BarronRep, your blog has nice stuff on it. Enjoyed that piece on the effects of distressed and abandoned properties. I sincerely hope the Neighborhood Stabilization Program isn't going to get axed as part of the promised spending cuts.

Far, you touched on something I tried to reach in that other post on how it takes a village. Everything that is being done out there now (in the realm of government stimulus plans) touches onto the fabric of society at specific, tiny points and not on whole /areas/. Big difference. In this case, having a cohesive neighborhood means that the neighbors mostly all know each other, are reasonably comfy with each other and on good terms with each other, etc, and have a shared idea of what kind of neighborhood they want to share .. and that last bit probably includes the 20+ people going as a group to the home of the meth dealer and telling him to clean up or get out. Or, having a prosperous economy means that many more parts of it are all doing well, instead of just a narrow class of high-rolling banksters earning $100Mn bonuses and high-fiving each other over living the good life, while the rest of the country slides into decay.

I am going to try to find a different way to approach people about the possibility of squatting. Far, you're right, people automatically jump to a very negative connotation at the mere mention of the word. Maybe it helps if you call it “house sitting” performed as a sort of win/win community service?

Maybe this is just wishful thinking, but I have been hoping to see signs that the banks and RE agencies would realize the scale of the problem and put out bids for people to house-sit their properties. Subject to agreement on certain basic aspects (see below) there seems to be no reason why a bank could not work out a mutually beneficial arrangement with the right type of house-sitters:

* the bank and the house-sitters agree split the RE tax burden;

* the house-sitters agree to pay the utilities costs in excess of the bare-minimum needed to keep the building heated/cooled and hooked up .. they will have this from their records;

* the house-sitters agree to keep the building and grounds in good repair; should they make material investments plus labor that go into improving the property, the materials cost gets deducted from their share of the tax & utilities;

* the house-sitters agree that if/when the owning bank/agency finds a legitimate buyer, they will vacate the property upon being given enough advance notice to find another home (3 months?);

* the bank agrees that if it does not find a legitimate buyer within 10 years, it will work out a purchase or rent-to-purchase agreement with the house-sitters, with them having the right of first refusal on the property;

I know many, many responsible renters who would love a shot at home ownership, who did not drink the Kool-Aide of high prices and toxic loans, and who would probably make pretty good neighbors. They would be an asset to their neighborhoods and would help keep another property from falling into disrepair.

Does that sound like a plan? BarronREP, would love to hear your take on this.