Too Many Vacant Lots, Not Enough Housing: The U.S. Real-Estate Puzzle – Wall Street Journal

Chicago, whose population has fallen by about a third since the 1950s, has more than 10,000 city-owned vacant lots. Another 16,634 are caught in a limbo of back taxes and unpaid fees.
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David Hardy
8 months ago

This is all from a recent Land Bank audit: https://www.cookcountylandbank.org/wp-content/uploads/2023/06/RSHC_Final.Report.pdf Land bank acquisitions: Following its creation in 2013, the CCLBA quickly ramped up operations. Initially, the Land Bank acquired the majority of its properties through donations and direct purchases from private entities (such as Fannie Mae, Freddie Mac, the National Community Stabilization Trust, among others). In FY14, for example, the Land Bank acquired 31 properties (10 through purchases, 19 through donations, and 2 through forfeiture). Today, almost all of the Land Bank properties are acquired through the Scavenger Sale, which is managed by the Cook County Treasurer. In FY20, for… Read more »

David Hardy
8 months ago
Reply to  Mark Glennon

I’ve got a lot more. I’m just getting warmed up.

taxpayer
8 months ago

The article focuses on Chicago, but also discusses Detroit and Pittsburgh. Detroit has a serious proposal to raise reduce taxes on houses by increasing land tax, so vacant lots become more expensive to hold. Pittsburgh had a system much like this, but abandoned it about 20 years ago for unrelated reasons, so now they have a vacant lot problem too.

David Hardy
8 months ago
Reply to  taxpayer

Higher taxes on lots are going to cause more people to abandon lots. Like I posted below, the problems are all rooted in the failure of the state, counties and cities.

If you improve the school system, people will be inclined to move in. If you make transportation improvements, people will be inclined to move in. If you subsidize shopping and recreational options, people will be inclined to move in. If you lower taxes, people will be inclined to move in.

David Hardy
8 months ago
Reply to  David Hardy

If honest commitments to maintain safety are enforced, people will move in.

David Hardy
8 months ago

I found part of the information I was looking for. SB0074, if enacted, would amend the property tax code and put in place an installment system for late taxpayers. If folks are on installment plans, their taxes cannot be sold. Well, where are the counties going to get the money to make up for lost tax revenue? How much is this program going to cost taxpayers? A task force has been created to study the impacts of this proposal and the report is due on November 15, 2023. https://www.ilga.gov/legislation/BillStatus.asp?DocNum=74&GAID=17&DocTypeID=SB&LegID=143281&SessionID=112&GA=103&SpecSess=0 Amends the Property Tax Code. Provides that each county treasurer in… Read more »

David Hardy
8 months ago

I can’t emphasize enough how ridiculous this solution is. Reporting is lacking and, just like everything else that’s important, only surfaces after the laws change. I still don’t understand the point of a land bank, and I’m well educated in this subject matter. A tax deed wipes out all encumbrances and subordinate liens, basically everything except demolition liens. The major obstacles for someone entering a competitive bid for property in a Cook County tax sale are legal complexities, the city’s own encumbrances and poor property records administration. THESE ARE ALL CLEARLY THE RESPONSIBILITY OF THE CITY COUNTY, AND STATE. The… Read more »

Tom Paine's Ghost
8 months ago

A good start to Chicago’s recovery and the redevelopment of these vacant lots would be elimination of Public Sector Unions and school vouchers for all kids. The constitutional argument against public sector unions is growing, rational and strong. School vouchers will eliminate culprit number one of Chicago’s decline: The Chicago Teachers Union.

David Hardy
8 months ago

The City of Chicago has no business running a land bank and bidding against private interests. This land bank idea is a terrible vehicle to curry favors to insiders.

David Hardy
8 months ago

One of the biggest problems holding back development and growth moving forward is this Illinois Supreme Court case. It completely destroys the Foreclosure Sale process by permitting circuit courts to vacate sales after foreclosure buyers put up the money and walk through the transaction in good faith, but before the sale is confirmed by a court. It deters most from participating in the wholesale market because money could potentially be tied up indefinitely. Household Bank v. Lewis, 229 Ill. 2d 173 https://caselaw.findlaw.com/court/il-supreme-court/1098491.html The issue in this case is whether the Illinois Mortgage Foreclosure Law (735 ILCS 5/15-1101 et seq. (West… Read more »

David Hardy
8 months ago
Reply to  David Hardy

Why are you trolling my post? It makes us look bad and diminishes the seriousness of the matter when we resort to personal attacks and grade school jokes.

Old Joe
8 months ago

This article could have been written about the Detroit of yesterdecade. Thousands of formerly inhabitable property tax paying home have been demolished. So many that enter city blocks have reverted to farmland.

David Hardy
8 months ago

What a mess. There are lots of errors and misleading tangents in this article. A high water bill is wiped out by a tax deed. Thole point of the Scavenger Sale is to give land a second chance and for purchasers to acquire clean title to land. A Scavenger Sale will not wipe out a demolition linen and these are often huge and higher than what the unencumbered land is worth. Lots in Englewood have cheap assessments because they aren’t worth anything!!! From what I remember, a typical lot in Englewood is worth from $10K to 25K. Grass cutting fees… Read more »

Ken Burke
8 months ago
Reply to  David Hardy

David Hardy, you should write a rebuttal to the WSJ story for publication at Wirepoints.org that draws upon your own experience/knowledge interacting with the CCLB.

That WSJ report is a travesty.

Da Judge
8 months ago

Guv Pigchop hates Illinois and won’t be happy until all the lots are vacant. He wears a man girdle to keep his massive gut under control!

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