Asking Banks, Not Taxpayers To Pay For Foreclosure Costs

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Click on image of Coon Rapids City Council to watch the public testimony on foreclosures

When a home becomes vacant because of a foreclosure, taxpayers end up footing part of the bill for increased security and maintenance costs. A report titled “Big Banks Make Bad Neighbors” from Our Future Minnesota implies that those kind of foreclosure costs are draining public resources in Coon Rapids where foreclosures skyrocketed more than 600% from 2005 to 2009.

Tuesday night, residents of Coon Rapids delivered a petition to City Council members asking them to pass an ordinance that makes banks pay for the impact of vacant homes on the community. The residents say foreclosures not only devastate families and individuals, but hurt the entire city.

Residents want the City of Coon Rapids to require owners of foreclosed properties to pay the full cost of maintenance. It proposes a simple solution that requires banks to register the properties with the city and pay a fee to cover the expenses of the properties to the city. Minneapolis and other cities around the nation already implemented similar ordinances in response to the foreclosure crisis. This registration allows the city to adequately fine banks for unkempt and problematic properties so costs don’t unfairly burden taxpayers.

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