Today the US Treasury announced it is going to give Illinois $118 million dollars for " Hardest Hit Funds" to address Foreclosures and abandoned buildings caused by the financial crisis
Its a crime because I see another failed policy by the US Treasury and even worse decision by the city of Chicago in how to address the foreclosure crisis in the hardest hit communities.
Most of the money will be going to the Chicago Community Land Bank and will be used to demolish buildings that pose a threat to health and safety because of structural defects . Once these building are removed the intent is to get developers into these neighborhoods .
But there is a flaw to this thought process . First removing abandoned buildings actually brings down values to the neighborhood because these buildings now become vacant land and vacant land has less value than a home sitting on it. Removing the home actually displaces families . There will be less homes or apartments to live in or rent until developers come into build new homes .Finally what makes you think new developers will be interested in these neighborhoods. Can these developers get financing in these neighborhoods and will the rent be affordable or will people be able to afford to buy new homes these neighborhoods ? Or yet a better question are lender going to give new loans to families in these neighborhoods ?
i think the biggest problem is the city had no plan for revitalizing these neighborhoods. I say money should be spent fixing up some of the abandoned buildings and used to create jobs and trainings or jobs like carpenters , plumbers, electricians , to boost the community . Then use part of this money to build new schools or create business's like day care centers , Internet training centers , grocery stores to address th food dessert issue .
I could go on but the bottom line is the city needs to address and come up with a comprehensive plan to revitalize and distribute the wealth in the hardest hit communities.