How to Save the World - Use Foreclosed Homes to Create Affordable Housing

I came across an article in the San Diego Unionseed capital and private investment capital to buy
Tribune that was very thought provoking. The articleforeclosed homes and fix them up for lower income
discussed some novel ways which cities werepeople who have been priced out of the home
brainstorming to solve the problem of foreclosedmarkets in recent years and then sell these homes
homes and the blight they create when they sit onwhen the markets return is a total win for everyone.
the market. How will cities deal with rows and rowsVariations of this such as rent to own for those who
of foreclosed homes lowering the value of homeswould like to get into the market at a later date
near them and inviting squatters or worse. Onewhen homes have reached price equilibrium is another
solution being explored by the San Diego City-Countygreat possibility.
Reinvestment Task Force is to create a regionalWho Wins
bank. A new agency would be created that would1. The city that maintains vibrant neighborhoods
buy up these homes before they became city blightrather that shuttered homes that are a blight, an
or a speculators dream and instead create affordableinvitation to crime and a potential health hazard
housing. The proposal was much more far reaching,2. Real estate agents that see less property on the
but what intrigues me is the use of these homes tomarket
solve other growing problems. Heres what they said:3. Rows of foreclosed homes can only lower the
"Form a regional land bank to buy foreclosedvalue of neighboring homes
properties to create affordable buying opportunities4. Affordable housing is a community benefit
while guarding against neighborhood blight. Purchased5. According to Task force member Robert F.
homes could be rented at affordable rates and laterAdelizzi, a retired banker and chair of the
sold at affordable prices."subcommittee that rafted the recommendations, this
Wow! The idea of creating a bank using Governmentcan be both profitable and socially beneficial.