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Ryan Eashoo
F L I N T O I D
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Treasurer's race critical with Genesee County, and many communities within, on the brink of fiscal collapseShare
Yesterday at 4:16pm
By Barry Simon
Genesee County is well past the political arguments of whether (or not) to "Shrink" the community! The county as a whole (not just Flint), is clearly shrinking leaving it with too few households to fill too many housing units. Property values have plummeted at least 30% since 2005, leaving most communities, and the county as a whole, with significantly less (realistic) revenue potential than required by their budgetary obligations. Furthermore, property values will not stabilize, let alone recover, so long as the surplus of housing units remains.
If the area will have any possible chance at turning around, it will require strong and effective leadership from the next Genesee County Treasurer …. Without a County Executive, the Treasurer will be in a unique position to bring together the elements of the community that can have a positive impact on the property valuation crisis that has brought the over all community to that "brink."
Today we’re just two weeks from the August 3rd primary and there’s been virtually no media coverage of the Treasurer’s race .... a race far too critical to be left to political alliances and 30 second sound bites. Quite frankly, there's a need for the local media to focus directly on this race, and examine the positions of the candidates in full view of the voters.
Realistically speaking, we will be electing the next Genesee County Treasurer in that August 3rd primary, not the November General Election. Consequently, the county’s future may well be dependent on how the primary winner deals with the following realities:
Reality - The next treasurer will inherit responsibility for the more than 7,000 properties currently in Tax Foreclosure in the Treasurer's Office and Land Bank
Reality - Census data suggest the area's lost 18,000 residents (7,200 households) since '06
Reality - The loss has taken us to some 170,000 households to fill 197,000 housing units.
Reality - While local employees comprise the primary market for Flint area housing, there are only around 133,000 jobs in Genesee County, or just 0.68 (jobs) per housing unit.
Reality - According to RealtyTrac, the county has 5,300 homes in some stage of ban
k foreclosure, with 3,300 currently "Bank Owned.
Reality - The combination of 27,000 more homes than households, combined with more than 12,000 in foreclosure, had a devastating impact on property values! Consequently, in the "best case scenario" (the Federal House Price Index [HPI]) Flint area homes have lost 30% of their value since 2005.
Reality - Luxury homes, residential investment and commercial/industrial properties have lost even more of their value than the "conforming" homes covered by the HPI.
Reality - Despite recent reductions in "taxable value," most Flint area homes are taxed at a level well above their actual value.
Reality - The burden of those unrealistic assessments make it more difficult to place County owned properties into private hands, while increasing the likelihood that additional owners and deed holders will walk away from their current properties.
For the next Treasurer to deal with these crises facing the county, and its residents, effectively, he/she must:
A) Recognize the seriousness of the realities that impact property values;
B) Be willing to lead from a position of reality versus political expediency, and;
C) Acknowledge that the primary purpose of private property is NOT to provide funds for
government, but to provide wealth and security for its owner.
In particular, the Treasurer must:
1) While acknowledging that rehabilitation of Land Bank properties is the "Politically Expedient" goal,
also acknowledge that dollars spent on rehab that go beyond the real value of a home are wasted.
Consequently, the primary focus of dealing with county owned properties should be on demolition.
2) When individuals (politicians or media) attack that policy, stand by the reality that, if ALL
county owned properties were demolished, there would remain a surplus of roughly 20,000 housing
units (homes to households) in Genesee County.
3) That the few tax foreclosed homes that should be saved should also be taxed at their real value.
Consequently, no County owned home should be sold or rehabilitated without a prior agreement from its Municipality that its assessed value will match its selling price.
4) That older homes have high maintenance costs. Consequently, just because a buyer can afford to buy a home doesn't mean he/she can afford to be a "homeowner."
5) Understand that, while it's politically expedient to maintain a goal of converting foreclosed properties
to "owner occupied" residences, the maintenance costs of homeownership often make it far more
eco-nomically feasible, and in the best interest of the community as a whole, to sell to professional
land-lords.
6) Recognize the fact that the crises of property value devastation and blight are not exclusive to
Flint. The whole county is faced with a housing surplus that continues to drive down values.
Consequently, the suburbs need the same type of attention to preservation that Flint's uniquely
received in the past.
7) As the countywide wide leader, bring together the elements of the local housing industry (Realtors,
Landlords, Builders, Lenders, Neighborhood groups, etc.) along with local units of government and get them "on board" with a rational policy on dealing with foreclosed homes in particular, and the
valuation crisis as a whole.
As Executive Vice President of the Builders’ Association of Metropolitan Flint (1997-2007) Barry Simon has been the primary source of housing data and forecasting to Genesee County’s media, business, government and education communities for more than three decades. He’s also been the Publisher and primary writer for “Housing Quarterly” Magazine (1990-2007) and “Veritas” (1977 - present), both publications with a focus on housing in Southeast Michigan.
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Thu Jul 22, 2010 4:51 pm |
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untanglingwebs
El Supremo
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| Estimates are that property values will drop another 15 % and recovery is further away than previously thought. People keep moving out of the north end. You are right when you say we are already shrinking. |
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Thu Jul 22, 2010 8:07 pm |
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00SL2
F L I N T O I D
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| True, the blight-ors and crime are beginning to infest the rest of the city. |
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Thu Jul 22, 2010 8:34 pm |
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Adam
F L I N T O I D
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What we be doin in Flint Town
gentrification
The restoration and upgrading of deteriorated urban property by middle-class or affluent (white) people, often resulting in displacement of lower-income (black) people. |
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Thu Jul 22, 2010 9:44 pm |
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Ryan Eashoo
F L I N T O I D
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I am voting for Lee because he has the knowledge to run the office on Day 1.
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Flint Michigan Resident, Tax Payer, Flint Nutt - Local REALTOR - Activist. www.FlintTown.com |
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Fri Jul 23, 2010 10:04 am |
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