This information was presented at a breakfast meeting in Springfield September 14, 2010 by:

Peter Gagliardi, Executive Director HAPHousing

Additional data presented by:Mary SuterSales Manager, Data SolutionsThe Warren Group

Full text of this presentation will be posted here shortly

Welcome

Why Are We Here?• To explore an issue threatening our region• To begin to understand the magnitude and

potential consequences of the problem• To understand steps already taken• To explore what else needs to be done• To in motion steps to address the threat

The Wave of Foreclosures

• Map showing all addresses which were taken by a lender from 2007 to date. (Western Mass? Hampden County? Springfield? – Jennifer is working on this.

Look at Data

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

HAMPDEN 7.43% HAMPDEN 5.59%HAMPDEN 6.44%

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

Hold for Warren Group

Focus on SpringfieldFrom Data Digest, Pioneer Valley

Planning Commission:

• Springfield had highest foreclosure rate in Valley• 2.5 times rate for the region• Nearly 4 times rate for the state

• Of 30 Census Block Groups with highest rates in the region, 29 were in Springfield

• Springfield and Holyoke had 2/3 region’s total foreclosures

• Highest levels of sub-prime loans, found typically in urban core and minority communities.

Foreclosure Petitions Filed for Springfield2007-2010

Foreclosure Deeds Filed for Springfield2003-2010

REO PropertiesAs of 9/8/10, REO properties in Springfield totaled 337

Mapping the DamageForeclosures in Target Neighborhoods

Mapping the DamageTax Title Cases in Springfield

Mapping the DamageBlighted Properties in Target Neighborhoods

The View on the GroundOne Block on Quincy Street

Even Forest Park Is Affected

Abandoned Property is NOT a Victimless Crime

In the early 90’s, one owner filed bankruptcy and abandoned 7 buildings in Springfield with a total of more than 200 units while owing the City more

than $500,000 in back taxes. He left a similar legacy in Holyoke.

Springfield’s Old Hill

One in Ten Residential Parcels Were Vacant Lots or Boarded Buildings

Wreckage Wrought by Prior Foreclosures

The Good News TodaySpringfield’s vigorous response

The Good News TodaySpringfield’s vigorous response

The Good News TodaySpringfield’s vigorous response

The Good News TodaySpringfield’s vigorous response

The Good News TodaySpringfield’s vigorous response

• Citi Stat/ do we have a graphic from Citi Stat that would demonstrate what hey can do? Jennifer or Sarah? – Jennifer getting details.

The Good News TodaySpringfield’s vigorous response

Our Response is Still Outweighed by the Magnitude of the Crisis

• The numbers are far beyond what we can do with public resources alone– Number of foreclosure deeds has been rising– REO properties remaining unsold is increasing

• Properties are not “aging” well during the foreclosure process

• Investors with cash have been buying up properties; – Not all are fixed up and rented or re-sold– Some have become part of large pools

• Bold revitalization plans are threatened by increased blight – State Street Corridor and the South End Initiative

• Coordination of overlapping initiatives is lacking

Why Do We Care?• “Metropolitan areas here and abroad are the unequivocal engines

of national prosperity, because they concentrate at an unprecedented level the assets that matter.”*

• “Our top 100 metropolitan areas alone take up only 12% of our land mass but harbor two thirds of our population and generate 75% of our GDP.”*

• “Incredibly, 96% of the economic output of Massachusetts is generated by the four metropolitan areas in the state that rank in the top 100 nationally.”*

NOTE: Springfield is the core city of one of the 100 largest metros in the United States.

*Bruce Katz Vice President and Director,

Metropolitan Policy Program

Why Do We Care?

• To quote Dean John Mullin from the University of Massachusetts,

 "There is no great region without a great center city, there is no great center city without a great downtown and there is no great downtown today without the presence of medical and educational institutions".

Why Do We Care?

• “The recent housing crisis threatens to undo the progress made in communities over the past 20 years.”

• “The issue of vacant and abandoned properties threatens the very sustainability of many communities.”

“REO & Vacant Properties / Strategies for Neighborhood Stabilization”A Joint Publication of the Federal Reserve Banks of Boston and Cleveland and the Federal Reserve Board

What Are Our Obstacles?

Federal Reserve Bank of Boston: 2009 Annual Report / “Lessons From Resurgent Cities”

• Leadership, collaboration• Transformation of the economy• Development of human capital• Extension of prosperity to all

What Can We Do?• Lead: take on the issue of neighborhood

stabilization• Collaborate: bring our many efforts together

under a big tent, bringing together public, private, and community

• Recognize housing and the fabric of our communities as economic development issues

• Continue to build upon the progress of the past few years

Join Us on November 10!Bring Colleagues!

• Text• Text

Next Meeting

We invite you to join us on December 14th!