Indio Becomes Model for Maintaining Forclosed Properties
The California town of Indio has been standing tall in front of large banks and larger cities nationwide. It has been able to force some of the largest banks to maintain their forclosed properties within its jurisdiction.
When the town was starting to get filled with abandoned foreclosure properties covered with overgrown grasses and various kinds of litter, the town passed an ordinance that would require banks and other lenders to maintain their forclosed properties in the area.
Jennifer Stroud, a law enforcer in Indio, said the ordinance has made a big difference in how the town looks. As of date, the town has around 2,600 forclosed properties, with around 1,100 units abandoned.
Aside from the ordinance, the town has also been conducting sessions to advise homeowners in danger of foreclosure and help them find ways to prevent their homes from becoming forclosed properties.
Also, Indio will start to implement this summer its program of purchasing vacant forclosed properties, fixing them and then selling them at affordable prices to low-income families.
The purchase and resale program will be funded with $2.8 million provided by the county.
Mark Wasserman, an Indio city official, said the town’s programs help people keep their homes and help lower-income families become homeowners through the purchase of affordable forclosed properties.
The California town was the first city in the valley to require banks to maintain their forclosed properties. Town officials passed the law in March 2008 when vacant foreclosed homes were starting to fill the town. The law also ordered banks to register their foreclosed properties so the properties could be monitored properly. Offending bankers would be fined or arrested on a charge of misdemeanor.
Jason Anderson, one of the town officials who helped create the bill, said the compliance rate is high because the banks realized the city was serious with its arrest and misdemeanor provisions.
Since the implementation of the ordinance, 458 forclosed properties have been registered and an estimated $68,700 in charges has been paid.
The success of the town’s ordinance has led federal officials to invite Anderson and other Indio officials to discuss the ordinance and their experiences in the U.S. capital, together with officials from Miami, Dallas, Baltimore and Saint Louis.
Recently, town officials have approved the improvement of their programs to reduce the number of forclosed properties, including the implementation of mediation schemes and homeownership workshops.
