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$3 Billion to Renovate Vacant Houses in Baltimore City

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Real Estate Agent with 410-935-5844 Office 634480

$3 Billion to Renovate Vacant Houses in Baltimore City

There are, at least, 15,000 vacant properties in Baltimore City.

The City of Baltimore is trying to scrape together $3,000,000,000, and maybe as much as $8,000,000,000 to renovate these 15,000 properties and possibly as many as 45,000 properties.

Here are some thoughts and ideas regarding this monumental initiative:

Good!  It is about time! 

These houses are dangerous to adjoining properties, dangerous to fire fighters, utility workers, and citizens. 

They have been used as drug stash houses, locations for dog fighting, extremely inadequate squatting houses for the homeless, and other undesirable activities.

They are a psychological impediment to good health and to the development of strong minds.

They are a breeding grounds for disease.

They are a major blight to what, otherwise, is one of the most beautiful cities in the country.

Although this is a major undertaking, the price seems too high.  When investors renovate houses, they have the cost of buying  the properties, the closing costs involved in purchasing the properties, the cost of the renovations, holding costs, and the closing costs involved in selling the renovated properties.  With all of these costs, the investor can sell the property at a reasonable price that allows for the recouping of all of these costs plus a profit.  In other words, the project for the investor pays for itself.  Once Baltimore City renovates these homes, do they intend to sell them at reasonable prices such that they, too, can recoup the costs, thus allowing for the program to pay for itself, or do they intend to give the houses away?  Of course, it is understood that some upfront money will be needed, but the amount that they are stating seems to be extremely excessive.

Who will perform the work necessary to execute this program?  The planners of this program have stated some organizations that would be responsible for overseeing the project, but numerous, currently not hired, people will be needed to work on this program.

This creates an incredible opportunity.  Baltimore City has an inordinate amount of either unemployed or underemployed people who lack the education, skills, training, and experience to obtain employment that can pay them wages above the poverty level.  This leaves them in a position where they can not pay their bills, where they sometimes resort to crime, and where they, consequently, become poor role models to their children. 

Another primary objective of this program could be to address this employment concern.  There are many skills that will be needed to complete this project.  These skills include: accounting and bookkeeping, project management, purchasing, and such, which are mainly office related skills.  Other skills include: electrical, plumbing, HVAC, roofing, carpentry, and other hands on skills.  These are all skills that could be taught and immediately applied on the job.  With $3 billion, there should be sufficient funding to create this training program, pay these workers, and complete the project.

With these new skills, these people could eventually move on to more permanent positions with employers who need workers with these skills, thereby providing them with decent paying jobs.  This could even put them in a position where they could become some of the first homeowners of these newly renovated homes.

By renovating the vacant homes using the citizens of Baltimore, improving the skills of the citizens so that they can obtain good employment, and increasing the tax base of the City with occupied homes so that it can adequately address other issues such as schools, the citizens will develop a new pride in their town which will go a long way towards eliminating crime.

If you would like to buy into Baltimore before this rejuvenation occurs, feel free to give me a call.

Ron Trzcinski

Sachs Realty

410-935-5844

zenithret@gmail.com

 

Karen Krzniak
Zenith Realty - Towson, MD

Ron,

I agree that $3 billion is excessive, but if they can get it, then they might as well use it.

Dec 15, 2023 12:10 PM
Kathryn Sparks
Zenith Realty - Baltimore, MD

Ron,

That is an excellent idea of creating a training program to elevate the skills of so many people.

Dec 15, 2023 12:11 PM
Adam Feinberg
Elegran - Manhattan, NY
NYC Condo, Co-op, and Townhouse Advisor

Excessive, maybe, maybe not.

 

I bought my home in a gentrifying neighborhood. There were plenty of shell brownstones and dangerous buildings when I first bought here. The city opted to provide long and deep tax abatements to attract developers which could then be passed on to home buyers. As a result, I received a 25 year tax abatement. My property taxes almost 18 years later are still less than $4/month (not a typo). Everyone thought I was crazy buying into the neighborhood. Turns out my upstairs neighbor- a Nobel laureate in Economics, and an advisor to a US President had the same thoughts on the value of the neighborhood that I did. 

What the government is doing in Baltimore is a gamble- but it might ultimately prove to be wise. 

Dec 16, 2023 07:27 AM