Detroit Is Demolishing Homes With Federal Money Meant "To Save Them"

[Swordsmyth]

Contrary to popular perception, not all of the money approved as part of the federal government’s emergency effort to save the American financial system in the fall of 2008 went to the big banks. Some of it – nearly $10 billion, all told – went to support the government’s “hardest hit” program, meant to help forestall foreclosures in 18 states.
And unsurprisingly, nearly a decade after the program was signed into law, government investigators are finding that much of this money was squandered by state governments. Money initially earmarked to help troubled homeowners struggling with underwater mortgages was instead spent on demolitions meant to boost prices of surrounding homes and help ward off crime in city neighborhoods. Except the money was often squandered by state governments, disproportionately robbing poor citizens in cities like Detroit of a program meant to save them from homelessness.

More at: http://www.zerohedge.com/news/2017-07-23/detroit-demolishing-homes-federal-money-meant-save-them

More "Other People's Money" fraud.

[angelatc]

Yeah. There was a little house in my neighborhood the land bank tore down. My son tried repeatedly to buy it but when he could actually get anybody on the phone all he got was a run-around. The contractor that demolished it is related to the people that dole out the cash.

[nobody's_hero]

I can't imagine that demolishing a derelict home in a Detroit neighborhood is going to make the surrounding houses all that much more valuable. The city itself is still a shit-hole.

[angelatc]

I can't imagine that demolishing a derelict home in a Detroit neighborhood is going to make the surrounding houses all that much more valuable. The city itself is still a shit-hole.

It serves to keep druggies out and also from setting fire to them. It isn't just a derelict home here and there. There are literally blocks and blocks where only 1 house is still occupied and standing. They tried selling them for $1 - nobody wanted them. The crime is that bad.

[nobody's_hero]

It serves to keep druggies out and also from setting fire to them. It isn't just a derelict home here and there. There are literally blocks and blocks where only 1 house is still occupied and standing. They tried selling them for $1 - nobody wanted them. The crime is that bad.

But I'm guessing the homes that are still standing are worth, what, $5 now? Not to mention now you've got a bunch of homeless druggies standing on the sidewalk and you've got the only house still standing?

I just don't see how it computes, lol.

$17 grand to demolish a home to bring the other homes up a few dollars seems like a huge waste to me. They'd have been better off giving a few thousand for moving expenses to those people who wanted to leave, but then I suppose there would be no one left to vote in the democrats.

[angelatc]

But I'm guessing the homes that are still standing are worth, what, $5 now? Not to mention now you've got a bunch of homeless druggies standing on the sidewalk and you've got the only house still standing?

I just don't see how it computes, lol.

$17 grand to demolish a home to bring the other homes up a few dollars seems like a huge waste to me. They'd have been better off giving a few thousand for moving expenses to those people who wanted to leave, but then I suppose there would be no one left to vote in the democrats.

The houses aren't really even worth $5 now. The plumbing has been ripped out, roofs have big holes, a lot of them are partially burned up. The best chance of getting anybody to buy the place is to turn it into an empty lot.

Imagine blocks and blocks of this:

http://calsound.net/memoir/wp-content/uploads/2011/09/IMG_4842.jpg

http://calsound.net/memoir/wp-content/uploads/2011/09/IMG_4985.jpg

http://img.izismile.com/img/img3/20100718/640/detroit_ruins_640_02.jpg

http://img.izismile.com/img/img3/20100718/640/detroit_ruins_640_10.jpg

I left off a lot of the gorgeous old brick manors that were also felled.

[Krugminator2]

The houses aren't really even worth $5 now. The plumbing has been ripped out, roofs have big holes, a lot of them are partially burned up. The best chance of getting anybody to buy the place is to turn it into an empty lot.

Imagine blocks and blocks of this:

I left off a lot of the gorgeous old brick manors that were also felled.

Detroit is the most dysfunctional place on Earth. I have a friend who lives in Indian Village and was telling me that a few people are buying up large amounts of land because of how cheap the prices are. But if they want to develop the land the city wants to tax the hell of it. You have a situation where the city is getting no revenue and the place looks like Afghanistan. But at the same time, they want to punish private developers (i.e. whitey) if they try to make money through improvements in the city. I thought this was worth watching put together by some libertarians. http://www.landgrabfilm.com/trailer/

To respond to your comment, it is kind of funny how in some neighborhoods every third house has been set on fire at some point.

[angelatc]

Detroit is the most dysfunctional place on Earth. I have a friend who lives in Indian Village and was telling me that a few people are buying up large amounts of land because of how cheap the prices are. But if they want to develop the land the city wants to tax the hell of it..

When we first moved to MI we looked at foreclosures in Detroit. We found one in a neighborhood we'd never be able to afford in a regular city. GM executives, bank presidents, etc...

The house was $10,000 (this was before the real estate market hit bottom) and was liveable. Had plumbing and a good roof. The taxes alone would have been $30000 a year.

Yeah we didn't move there.

[tod evans]

Just a few more million and everything will be better....

[r3volution 3.0]

Quick fix:

Detroit takes in $1,910 million in taxes per year. The police department costs $250 million per year.

Double the police budget, cut everything else. That makes for a 73% tax/spending cut.

Privatize all city owned enterprises. Eliminate all city regulations.

Boom, prosperity.

[Swordsmyth]

Quick fix:

Detroit takes in $1,910 million in taxes per year. The police department costs $250 million per year.

Double the police budget, cut everything else. That makes for a 73% tax/spending cut.

Privatize all city owned enterprises. Eliminate all city regulations.

Boom, prosperity.
That is a little too extreme but on the right path none the less.

[r3volution 3.0]

That is a little too extreme but on the right path none the less.

I forgot a step: put the Michigan national guard on speed dial (might need them in the first few months).

[Schifference]

Imagine the SJW if a bunch of white wealthy people bought up huge parcels and redeveloped the land into beautiful estates. Then it would be, "they stole our homes."

[The Northbreather]

When we first moved to MI we looked at foreclosures in Detroit. We found one in a neighborhood we'd never be able to afford in a regular city. GM executives, bank presidents, etc...

The house was $10,000 (this was before the real estate market hit bottom) and was liveable. Had plumbing and a good roof. The taxes alone would have been $30000 a year.

Yeah we didn't move there.
$30,000!

Is there an extra zero here?

[angelatc]

$30,000!

Is there an extra zero here?

No...$30,000. The property taxes in the city cripple any real recovery chances. Their property taxes are some of the highest in the country.

[r3volution 3.0]

No...$30,000. The property taxes in the city cripple any real recovery chances. Their property taxes are some of the highest in the country.

Yup, and moreover they seem to be still using old assessments, from before the city became a dystopian hellscape.


Imagine the SJW if a bunch of white wealthy people bought up huge parcels and redeveloped the land into beautiful estates. Then it would be, "they stole our homes."

"Muh slums!"

[Swordsmyth]

Yup, and moreover they seem to be still using old assessments, from before the city became a dystopian hellscape.
Property taxes NEVER go down silly.