Foreclosures bring devastating public costs in lost property taxes, falling property values, and the cost to the city to inspect, maintain and secure foreclosed properties.
The typical foreclosure costs local governments $19,229 for increased expenditures in safety inspections, police and fire calls, trash removal, and general maintenance.
Bank-owned foreclosures cost the City of LA up to $144,582,851. South LA foreclosures costs upwards of $70.5 million, or perhaps even more since these foreclosures happen to be some of the most neglected properties in the city.
With 19,000 LA families in some stage of foreclosure today, these costs have nowhere to go but up.
Isn’t it time banks pay their fair share?
For more information, see ACCE’s September 2011 report “The Wall Street Wrecking Ball; What Foreclosures Are Costing Los Angeles Neighborhoods”