American Planning Association

Community Reinvestment and the Foreclosure Crisis February 22, 2011 According to the Woodstock Institute, lenders repossessed more than 25,000 homes in the Chicago area during the first three quarters of 2010. According to the same analysis, these lender-owned foreclosures will take an average of 16 months to be absorbed by the housing market. Vacant properties cause blight, which destabilizes neighborhoods and local real estate markets, and also weakens the ability of municipalities to maintain a comfortable quality of life by shrinking tax rolls and increasing maintenance costs. Geoff Smith from the Woodstock Institute took an in-depth look at recent trends in foreclosure activity in the Chicago region with a focus on the shifting patterns of regional foreclosures, the concentration of vacant properties tied to foreclosures, and implications for community development.