Residents of Cleveland Have Become Used to Seeing Bulldozers Pulling Down Foreclosed Structures
Photo by Respres
Cleveland has become one of the states hardest hit by foreclosures. In fact, residents have become used to seeing bulldozers pulling down vacant structures. Cleveland was one of the first cities to be hit by the foreclosure crisis and the blow had been one of the worst in the country. The facts behind the recent spate of demolition, however, are novel and drawing in the attention of the rest of the country.
Some of the mega banks of America have started to donate many properties that have been abandoned or could languish for an indefinite number of years. These are pulling down the housing market of the localities.
However, demolition expenses are being paid by the banks. Each property is costing them about $7,500. The housing crisis is continuing into its fourth year and the weight of all the taxes and maintenance has become heavy on the banks. On top of all these payments, code violation penalties and expenses relating to marketing these units need to be paid as well. For the banks, it has now become cheaper to knock down houses that nobody wants.
After foreclosed properties are razed to the ground in Cleveland, community gardens can be found in these places as well as parking lots and church lands. Even if the plot is empty, it is not an eyesore like a vacant building. There is also the danger of too many demolitions crowding urban spaces. But those promoting this scheme contend that the buildings being pulled down are beyond salvage; what the bulldozers are doing is “burying the dead”.
The Cuyahoga County Land Reutilization Corporation is administering the ploughing-down program. In 2009, a state law was introduced with the purpose of creating land-banks with the authority and funds to take over unwanted estates and make better use of them – or at least engage in mercy killing.
Other states are also introducing laws along similar lines to tackle the foreclosure epidemic problem. Last summer, a measure like this one was introduced in New York. Legislation with the same purpose is also being worked out in Philadelphia, Georgia and elsewhere.
Progress was smooth because of the common interest that bound the land-bank of Cleveland with the interests of the financial entities – those that were responsible for the financial mayhem. “Initially, however, there were some minor errors”, said Gus Frangos of the land-bank (president).
When the operation started two years ago, both sides were on their guard. But innumerable meetings made between both sides made them comfortable with each other. Frangos came to the point sharply and clearly. He said they were taking only the worst units; all the banks had to do was not to walk away from these.
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