Coming on the heals of last month's statewide foreclosure summit, and action by the aldermen holding banks responsible for the upkeep costs of their foreclosed properties, Mayor Emanuel announced last week a new program to combat foreclosures. The new neighborhood-oriented approach will work less on a case-by-case financing basis, and more through an incentive-driven community loan program involving private funding led by a $15-20 million loan from the John D. and Catherine T. MacArthur Foundation. The city hopes to use this to leverage up to $50 million in private loans for rehabilitation projects, with allied non-profits to help allocate it responsibly. According to the city, there were more than 10,500 foreclosures in 2010, up 20% from the previous year. And 95% of those remain vacant.
The blight is widespread, but concentrations are, obviously, in western and southern quarters. So the city will target small subsections of nine neighborhoods, where geographic boundaries are unambiguous, property records are largely intact, and some mild market interest remains, such as Humboldt Park, Chatham, West Woodlawn, and Auburn Gresham. It hopes to be enough to spur the market and heal communities. If it's modestly successful, the program will spread to other downtrodden areas. Just to give a taste of what's out there for all you conscientious investors, Curbed dug up some listings from the Chase Bank portfolio- something for everyone, all under $50,000 (excluding the many, many condemned homes, often for far less). Bon Appetit!
· Listing: 4006 S. Western Ave. [Chase Real Estate]
· Listing: 2732 W. Thomas St. [Chase Real Estate]
· Listing: 4731 S. Ingleside Ave. [Chase Real Estate]
· Listing: 2101 E. 67th St. [Chase Real Estate]
· Mayor's Press Release [City of Chicago]