Avondale, AZHousing Crisis: Impacts and Strategies

Avondale, AZ

2000: 35,883

(approximately 126% increase in population from 2000-2008)

1990: 16,169

2008: 81,299

Boom Times

• Residential Construction off the charts• Fast appreciation of residential values• New Retail • Revenue Growth healthy• Investors: Rentals and Flipping

Houston, we have a problem…

Foreclosures by SubdivisionFall 2008

High: 21%

Median: 7.2%

Low: 0.1%

City Sales TaxFY Monthly

Building Permits

Foreclosures -- Impacts

• Values plummet• Abandoned homes

– weeds– green pools– vandalism

• Partially-built/occupied subdivisions• Tons of “for sale” signs• Spirits plummet

In Depth Look: AvondaleResidential Foreclosures Since 2007

Current Total: 5110 of 20236 (25.25%)

Median Re-Sale Home Prices

2006: $255,000

Current: $105,000 (59% Drop)

New Home Sales Volume

2006: 1,139

2010: 82 (93% Drop)

Strategies• Public Relations/communication• HOA Coordination• Code Enforcement

– Clean and Lien– Definition of “responsible party”– Rental registration

Foreclosures Mitigation

• Purchase updated foreclosure data• Track all foreclosures through database• Regularly map• Update database monthly

Knowing where they are and the status

Foreclosures Mitigation

• Inspect every foreclosed home– Secure properties as needed– Treat pools for mosquitoes– Enforce property maintenance compliance

• Monitor and document condition until occupied

• Keep neighborhoods looking good

Proactive monitoring of ALL foreclosures

Foreclosures Mitigation

• Awarded $2,466,000 for foreclosure mitigation

• Consumer-driven homebuyer program• Acquisition – rehab: Energy Star Home• Demolished 4 blighted, multi-family

properties• Created a buzz on purchasing Avondale home

Use of federal Neighborhood Stabilization Funds

Foreclosures by Subdivision

Fall 2010

High: 10.7%

Median: 2.5%

Low: 0%

The Future and the Recovery• Inching our way out of the recession• Making things happen: City Center, American

Sports Center

Percentages of Foreclosures --

Subdivisions

2008 2010

High 21% 10.7%

Median 7.2% 2.5%

Low 0.1 0

City Center

City Center

American Sports Center