Mayor calls for campaign to shame banks
Mayor Elizabeth Tisdahl Monday suggested Evanstonians should try to shame banks into taking more aggressive action to solve the foreclosure crisis.
Speaking at the City Council meeting, the mayor picked up on an idea suggested by U.S. Sen. Dick Durbin during an appearance in Evanston Friday to promote the $18 million federal housing grant won by the city.
While speaking with a homeowner facing difficulties selling her inherited property because of the depressed real estate market, Durbin said he'd suggested to residents in the Marquette Park neighborhood on Chicago's southwest side that they should post signs on foreclosed properties criticizing the banks' inaction.
And U.S. Rep. Jan Schakowsky, suggesting that smaller community banks have generally been more cooperative than major banks during the crisis, said she'd taken some direct action herself.
Alderman Ann Rainey, 8th Ward, said Monday she doubts the merits of putting up signs -- suggesting they would only draw attention to the financial plight of some neighborhoods.
But Tisdahl responded that many of the properties are pretty obvious already, because they are boarded up.
Since the city now has federal funds to buy up as many as 100 abandoned and foreclosed properties for renovation into subsidized housing, the city has a financial interest in trying to drive down the prices banks demand to hand over housing units for the rehab program.
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Banks don't tend to make good landlords
A year or three ago, the City of Evanston and a large group of neighbors were working hard to get rid of one of our very worst slum buildings. This property had a laundry list of building citations, the worst of which I recall was that a basement room was rented as living space and the tenant was offered a bucket for sanitary facilities. Many of the citations involved serious violations: incorrectly built interior walls, electrical problems, and issues with the windows.
Eventually, the bank foreclosed on the building. All of us breathed a sigh of relief, until we realized that the bank had absolutely no intention of taking care of the property, either. They left it empty, in the sorry state it was in, and I believe it stands in that state to this day*. In its current condition, it is unsaleable - but the bank refuses to put even the slightest effort or money into this property, even if it might mean being able to resell it.
This wasn't because the bank was broke: they hired a costly attorney to prevent the City from requiring them to bring this building up to code. Banks need to take some minimal responsibility for the buildings they foreclose on. At this point, if publicly illustrating the bank's role in this derelict building is what it takes to improve it, I'm all for it.
*Update: apparently this building was sold by the bank this October. It is still, however, in the same condition.
Classless
A classless thought and act if pursued. To shame the banks?
Focus on the problem, not the retribution. Think ahead, not behind.
Just a classic example of the tone of Washington - pure retribution and attack.
I am embarrased that our Mayor actually brought this to light.
And anything coming from the brilliant minds of Durbin and Schakowsky should be discarded - look at D.C. today.
Evanston is better than this. Why even make the effort to create and execute a campaign to shame the banks.
Perhaps one of the most ridiculous things I have heard and a classic example of misplaced ideologies, priorities and if executed, expenditures.
Voters need to shame the arrogant Democrats
Oh, now Durbin, Schakowsky and Mayor Tisdahl think shaming banks will solve the foreclosure crisis as if the banks are at fault for the inability of homeowners to pay their mortgages.
In case anyone hasn't noticed, banks are closing on us left and right.
As these Democrats continue to raise our taxes, grow government, spend us into endless debt and capitulate to unsustainable union demands, they demonize the private sector - banks, insurance companies, financial corporations, etc. Schakowsky wants to end the private health insurance industry and allow the government total control of our healthcare system.
There have been five recent affordable housing projects in Evanston that have failed, forcing the city to bail them out. Now, Evanston is participating with it's handpicked developer, Brinshore, to spend $18 million in stimulus money to buy up vacant and foreclosed homes, rehab them and build NEW properties for low income rentals and purchases.
Anyone care to venture what that will do to the existing homes on the market that are not short sales or foreclosures?
BTW-the homeowner that Durbin, Schakowsky and Tisdahl were speaking to and using an example for the need of the $18 million stimulus money does not have her home on the market yet! So, how does she know she will face difficulty selling her brick, 2-flat building until she puts it on the market? Properties are selling if they're priced right.
The remarks by these Democrats are duplicitous and appallingly arrogant.
Perhaps Evanstonians should shame Durbin, Shakowsky, Mayor Tisdahl and city aldermen for raising taxes in the past few years in a severe Recession, causing many people problems in paying their taxes - some of whom actually and ironically take out equity loans to pay their property taxes.
Folks, getting angry is not enough. Get involved and do something or else it will be the same old shameful display of poor, fiscally irresponsible and inept governance in an area that totally lacks political diversity.
End the arrogance of the one-party system. Shame these Democrats in the voting booth this November.
Why not use existing regulations?
The city has a nuisance property ordinance and a vacant buildings ordinance which they don't seem to be too aggressive in using.
"Shaming the banks" is likely to be ineffective. Bankers will not see them and--as we've seen with the government bailout of these banks--the big banks don't seem to have much shame.
If a property is out of compliance with property maintenance, the city should actually start enforcing its own ordinances.
This $18bn "grant" is a travesty for property owners since basically the city is going to reappropriate foreclosed properties, give them to a developer who will then saturate the market with below-market housing, bringing down the value of other property owners.
The city is already in compliance with the state's affordable housing requirement, so this effort seems like a colossal waste of resources.
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