White Eyes Tax-delinquent Properties

[HeightsGuy]

City to foreclose on 1,500 tax-delinquent properties

White eyes tax-delinquent properties

Mayor's plan to make room for affordable housing

By RON NISSIMOV

Copyright 2005 Houston Chronicle

The city of Houston will foreclose on 1,500 tax-delinquent properties beginning next month in an effort to add affordable housing and stem the gentrification of poor neighborhoods near downtown, Mayor Bill White said Monday.

ADVERTISEMENT

He announced the initiative, "Project Houston Hope," during his State of the City Speech before the Greater Houston Partnership, saying it would be one of his major goals in 2005.

"We are going to target the most neglected neighborhoods, where most of the houses have been abandoned and where weeds grow taller than humans," White said. "These areas are magnets for crime. ... We want to build affordable housing where crack houses now stand."

White said the city plans to focus on properties in six neighborhoods: Acres Homes, Trinity Gardens, Clinton Park-Fidelity, Settegast, Sunnyside and Independence Heights.

White said at a news conference after his speech that with the help of the Texas Legislature, he hopes to complete the foreclosures in six to 18 months. After that, he said, the city envisions working closely with developers and funneling tens of millions of dollars in local, state and federal funds to build mostly subsidized, single-family homes on the 1,500 lots.

The city also plans to improve infrastructure in these areas, he said.

White said that too many subsidized housing units now are being built in outlying areas of the city, "far away from work centers." White also has expressed concern that the increasing popularity of inner-city neighborhoods could drive out low-income homeowners as rising property values increase tax bills.

White said the city has not taken such a comprehensive approach to dealing with abandoned properties before, instead dealing with such issues on a sporadic basis when neighbors have complained. For example, he said the city foreclosed on 300 properties in 2003.

"I'm personally going to spend more time than anything else this year on this issue," White said.

Legislature's help needed

Steve Tinnermon, White's special assistant for neighborhoods, said White's plan is more ambitious than anything the city has tried in an effort to clean up tax-delinquent properties and build affordable housing.

Tinnermon said the city will ask the Legislature to pass two laws to help the plan. The first would eliminate, in some cases, a requirement that courts appoint a lawyer to represent the interests of property owners who cannot be located.

Tinnermon said the city wants to remove that requirement on properties that have delinquent tax bills and fees greater than their appraised values. About half of the 1,500 properties are in that category, called "upside-down" in real estate parlance.

Tinnermon said such a law could expedite foreclosures by reducing the entire process to as little as four months from as much as 18 months. He said the city has been unable to locate owners for about 80 percent of the city's tax-delinquent properties and that taxes have been unpaid on some properties for almost 20 years.

The city will also ask the Legislature to create a Houston "Land Bank," such as one already authorized in Dallas, that would give it the first right to buy foreclosed properties by paying the lesser of either the delinquent tax bill or the appraised value.

The city then could pass along the savings in selling the property to developers who would build affordable housing.

The city has lobbied the Legislature for a land bank since the early 1990s. In 1998, then-Mayor Lee Brown allocated $300,000 for a pilot land-acquisition program targeting three neighborhoods in the Third and Fifth wards. Tinnermon said a little more than 200 tax-delinquent lots have been acquired through that program.

Tinnermon said the city "is not putting all its eggs in one basket" in terms of relying on help from the Legislature. He said the city also plans to work with judges and constables to speed up the foreclosure process as much as possible.

White said the city may use its eminent domain powers to acquire foreclosed properties. Tinnermon said he does not have details on how this might work.

[Guest danax]

Just a few initial thoughts on this seemingly innocent proposal. The president of our civic club told me last weekend that she attended a City of Houston Housing & Development meeting recently and that they mentioned our neighborhood, which got me a bit worried because I don't think that we are in the same category as those other neighborhoods mentioned in this article and when the City lumps us in a category of needing their "help", that concerns me.

City to foreclose on 1,500 tax-delinquent properties

White eyes tax-delinquent properties

Mayor's plan to make room for affordable housing

By RON NISSIMOV

Copyright 2005 Houston Chronicle

The city of Houston will foreclose on 1,500 tax-delinquent properties beginning next month in an effort to add affordable housing and stem the gentrification of poor neighborhoods near downtown, Mayor Bill White said Monday.

Stem the gentrification? Why stop it. Gentrification ends up with the same result as "revitalization", doesn't it, just done by citizens and not government? Government should step back and let the natural process of property value increase happen. Implanting lower income people into neighborhoods to slow down gentrification reminds me of public housing projects and bussing in schools.

White said at a news conference after his speech that with the help of the Texas Legislature, he hopes to complete the foreclosures in six to 18 months. After that, he said, the city envisions working closely with developers and funneling tens of millions of dollars in local, state and federal funds to build mostly subsidized, single-family homes on the 1,500 lots.

Developers get sweet deals thanks to tax payer funding to sell to low income people, which will artificially keep the poor people in the area. Maybe this is a stretch, but is this a plan created by certain city councilpersons to try to prevent their constituency from being driven out?

White said that too many subsidized housing units now are being built in outlying areas of the city, "far away from work centers." White also has expressed concern that the increasing popularity of inner-city neighborhoods could drive out low-income homeowners as rising property values increase tax bills.

Work centers? Is he going through all of this to help low-wage workers stay close to work? What about buses, or MetroRail? And so lower income people will not be able to afford higher taxes as "gentrification" takes place? And? This is the way that the free market operates. The areas will get cleaned up in the process, am I being mean to say that?

The city will also ask the Legislature to create a Houston "Land Bank," such as one already authorized in Dallas, that would give it the first right to buy foreclosed properties by paying the lesser of either the delinquent tax bill or the appraised value.

A personal Land Bank approved by the Legislature? Gee, can I have one of those too? What about letting the rest of the world bid on these homes? Are they afraid the private sector would not build "affordable" housing.

This might sound like a nice idea on the surface but I don't know if I want "subsidized" housing in my neighborhood. Sounds like they'll be knocking down every single house they get and allow the builders to contruct the cheapest thing they can get away with. I wouldn't want a red-brick, garage-in-front new home where I live along side cute cottage style houses from the 30s. It would ruin the potential for the kind of revitalization that I am hoping for, where the existing housing stock is fixed up and the neighborhood retains it's identity and charm, instead of being "re-invented" by a mish-mash of tear-downs and cheap replacement housing representing no particular style or era.

[VelvetJ]

^

Wow.

[KinkaidAlum]

It amazes me how some people think.

This is a GREAT program. White is targeting long neglected properties that are mostly vacant and in some cases where back taxes are owed by the owners!

Additionally, why is it that when Houstonians hear "affordable housing" they immediately think of an episode of "Good Times?"

Quite frankly, I have seen affordable and mixed use affordable projects in cities such as Seattle, Portland, LA, Chicago, Boston, and Philly that would put all of Houston's new "market-rate" projects to shame.

I also want to applaud White for reminding us that Government can be proactive and positive. I cannot wait until this 30 year draught of anti-government resentment goes away. It's just so damn selfish.

[Guest danax]

It amazes me how some people think.

This is a GREAT program. White is targeting long neglected properties that are mostly vacant and in some cases where back taxes are owed by the owners!

Additionally, why is it that when Houstonians hear "affordable housing" they immediately think of an episode of "Good Times?"

Quite frankly, I have seen affordable and mixed use affordable projects in cities such as Seattle, Portland, LA, Chicago, Boston, and Philly that would put all of Houston's new "market-rate" projects to shame.

I also want to applaud White for reminding us that Government can be proactive and positive. I cannot wait until this 30 year draught of anti-government resentment goes away. It's just so damn selfish.

<{POST_SNAPBACK}>

I too want the vacant homes sold, but without the city's involvment after the sale. If they want to be proactive and accelerate the process of foreclosure that's fine, as long as proper due process takes place. They did mention the possibility of using eminent domain, which sounds a little aggressive.

I'm opposed to them tearing down houses and making sure that they remain 'affordable". Aren't those neighborhoods already the most "affordable" in town? He referred to them as "crack houses" and "magnets for crime". The vacant houses in my neighborhood are neither. And, the city doesn't seem to be asking the neighorhoods what they want. At least they can construct these new houses in a style to match the existing houses.

I will try to check out some of these other affordable housing projects that you mentioned. Maybe I'll change my mind. Maybe I need to understand this a bit more but for right now, they do sound like single family housing projects. Where do you live? Do you want these in your neighborhood? Let's pretend there were vacant properties in Midtown. Would residents there welcome these?

Does anyone disagree that there is a correlation between crime, trashiness and low income areas, or am I the only one with the guts these days to say this. I like Jerry Brown's approach in Oakland. Encourage gentrification and you will solve many problems. People being displaced? Having to sell their homes due to high taxes? 1) the over 65 are property tax exempt for the most part. 2) oh well.

Should we try to keep property values down just so everyone can stay?

Besides cleaning up neighbohoods, that is the other motive for this project, to "stem gentrification". I might have to move one day too if taxes get too high. I will deal with it.

Can someone feel this way and still be compassionate and help people? Sure.

[bachanon]

i know some of you get tired of me tooting the woodlands' horn. however, if planned appropriately, neighborhoods with mixed incomes can live in harmony. here in grogan's mill there are 100K dollar homes on the same street as 275K dollar homes across the golf course from million dollar homes with 65K dollar townhomes around the block and section 8 housing near the local elementary and intermediate schools, all connected by hike and bike trails. everyone shops, learns, works and plays together. most of the time you have no idea who lives where or what their living situation is.

it's the large concentration of lower income housing, coupled with bad management/maintenance of infrastructure that becomes the problem. an environment with mixed incomes eliminates many of these issues. what occurs is better amenities for everyone, better culture, better understanding.

[jm1fd]

here in grogan's mill there are 100K dollar homes on the same street as 275K dollar homes across the golf course from million dollar homes with 65K dollar townhomes around the block and section 8 housing near the local elementary

<{POST_SNAPBACK}>

Now...if only it wasn't a 12 hour commute away....

[bachanon]

actually, it takes about 35 minutes to get downtown via the hardy toll road. of course, i never drive downtown during rush hour.

[Guest danax]

i know some of you get tired of me tooting the woodlands' horn.  however, if planned appropriately, neighborhoods with mixed incomes can live in harmony.  here in grogan's mill there are 100K dollar homes on the same street as 275K dollar homes across the golf course from million dollar homes with 65K dollar townhomes around the block and section 8 housing near the local elementary and intermediate schools, all connected by hike and bike trails.  everyone shops, learns, works and plays together.  most of the time you have no idea who lives where or what their living situation is.

it's the large concentration of lower income housing, coupled with bad management/maintenance of infrastructure that becomes the problem.  an environment with mixed incomes eliminates many of these issues.  what occurs is better amenities for everyone, better culture, better understanding.

<{POST_SNAPBACK}>

I love the Woodlands. It was my first stop in Houston and I stayed with a friend who lived in the cheap section when I moved out here in October '92, I guess it was Grogan's Mill. It was around the block from an elementary school. Went to see Santana at the CW Pavillion a couple of days later.

As far as the mixed income situation, The Woodlands, I'm assuming, has total control of that area. Tough deed restrictions to keep it looking nice and lots of policing, if needed, to keep things in order. And Sec. 8 doesn't necessarily mean murders and drug dealers but it does increase the odds.

The Heights is probably a more normal example of the mixed income scene. The townhouses, old-house types have moved in and co-exist with graffiti, crime, general ugliness.

I suppose it's just a question of percentages. The Heights is a better place now than it was 10 years ago due to a shift in income demographics.

[VelvetJ]

2) oh well.

I might have to move one day too if taxes get too high. I will deal with it.

Can someone feel this way and still be compassionate and help people? Sure.

<{POST_SNAPBACK}>

Those words spoke volumes.

Even after the years I have been alive, it still unsettles me from time to time to see just how differently we view the world. I'm still trying to get used to the fact that everybody doesn't believe that red means stop and green means go.

[Guest danax]

Those words spoke volumes.

Even after the years I have been alive, it still unsettles me from time to time to see just how differently we view the world. I'm still trying to get used to the fact that everybody doesn't believe that red means stop and green means go.

<{POST_SNAPBACK}>

? I'm not sure what you mean.

[KinkaidAlum]

I live in Boston's South End neighborhood. My condo (I own) is literally one block away from Methuen Manor and two blocks from Villa Victoria. Both are low to moderate income communities. That hasn't stopped my house from appreciating in value by 155% since I purchased it in 1997.

However, the greatest part of it all is that all income levels (there are $4 million dollar townhomes located on the same block as section 8 housing) share the same sidewalks, take the Orange and Green lines, and shop at the same stores. It's the interaction across class lines in these daily tasks that makes Boston such a great city.

It's one of the reasons I favor lightrail. Wealthier folks are much more likely to ride rail than a bus and if/when Houston expands, it will offer a rare opportunity for the classes to mingle in Houston.

[westguy]

I think the majority of low-income residents live across the freeway from the Woodlands in areas of substandard infrastructure. Those affordable houses seem to me like window dressing.

[MidtownCoog]

Boston such a great city.

Now only if the races could get along up there.

[Lowbrow]

Now only if the races could get along up there.

<{POST_SNAPBACK}>

Is there something going on up there that I'm not aware of?

I don't recall any racial tension when I lived there. It was quite diverse and accepted as such. I didnt head south much but I loved jumping on the T and getting off at some random stop to see what was up in that neighborhood. Never felt unsafe or anything like that.

I'm glad to see Houston is finally getting a reputation for being as diverse as Boston. I'd much rather see many interdispersed ethnic cultures than just say a hispanic side of town, a black side of town, etc etc. Say a few blocks with strong viet majority, then a black majority, italian, whatever. I like to see people with a feeling for strong cultural identity but not segregation.

[KinkaidAlum]

Midtown is stirring the pot. I believe he's probably referring to the South Boston fight against bussing over 30 years ago. It was an ugly, ugly event in Boston's history. Of course, integration of schools in Houston came about without a hitch...

Boston has come a long way since then. Neighborhoods like the South End, Jamaica Plain, Mission Hill, Allston/Brighton, and even ethnic enclaves like Lower Roxbury (African-American) and Chinatown are becoming fully integrated.

[Subdude]

Now only if the races could get along up there.

This kind of remark tends to hijack the discussion. Keep it on topic please.

[MidtownCoog]

It's related to the topic of Boston as a utopia of rich and poor loving one another.

It's not.

Anyway, Brown tried to get this started years ago.

White has so many irons in the fire, but nothing has been finished.

Nothing but a bunch of 1/2 jobs.

[Astro]

I'm just glad White is doing something... As opposed to the previous administration. Time will tell if he can complete the jobs or not. I don't always agree with White's ideas (like forcing all clubs to close at 2 PM!) but I admire him for taking a stand, and the fact he is addressing many issues around town that people care about, like traffic congestion, pollution, housing, parks, etc.

[Hunter]

I agree that it is a wonderful idea to keep this area low income affordable. Houston needs more areas like this in the inner city but why do we all think that it will be low cost bidders building these homes and building them cheap? Because of Houston's history. In the past the contractors that got the job have always built them fast and cheap. Why should they change now?

I will not mention the subdivision but in one area Houston did this and after they were complete the city had to come in and put in a ton of money in repairs because of all the short cuts the contracts took in the construction phase.

I see no reason why they should change now. Many of the city ordinance inspectors are so crooked anyway that they rarely even inspect anymore now. I remember one that was even caught on film by a local new crew a few years ago during an inspection. All he did was peer in a few windows and then signed off on the project. Not all of them are bad but some are.