Mortgage Foreclosures: Police-Community Response
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Mortgage Foreclosures: Police-Community Response
By Darrel Stephens
Homeownership is a major part of achieving the “American Dream.” In fact the American Dream
Down Payment Initiative was signed into law in December 2003. The focus of the law is to increase
the homeownership rate by helping first-time low-income and minority buyers, while revitalizing and
stabilizing communities.1 The dream has been shattered in the past several years as mortgage
foreclosures have continued to climb across the country with the greatest concentration in high
poverty neighborhoods.2 There are a number of reasons for the increase in foreclosures – some
blame the sub-prime market; others blame unscrupulous lenders and developers; and others blame
homeowners themselves who have purchased homes with little down payment with the hope of
continued property value increases. The mortgage crisis has been cited as a primary source of the
economic disaster America is dealing with which, in turn, has contributed to loss of jobs,
bankruptcies and significant losses in government revenue at a time when demand for programs and
services is increasing.
Policing is one of those government services affected by the mortgage crisis. The Charlotte-
Mecklenburg Police Department (CMPD) in North Carolina first became aware of the mortgage
foreclosure problem in 2005 when Officer J.B. Helton, in the final phase of his field training
program, selected the Brookmere neighborhood for his required problem-solving project.3
Brookmere is a 1.5 square mile neighborhood with 237 residents located in the northwest part of
Mecklenburg County – the site of significant growth of affordable housing. Officer Helton selected
the neighborhood after he noticed that it had been the source of 404 disorder calls for service in 2004.
American Dream Downpayment Initiative (ADDI) http://www.hud.gov/offices/cpd/affordablehousing/programs/home/addi/
2
See for example Baker, Dean, “Homeownership: The Fast Path to Poverty “ T r u t h o u t | Perspective , November
12,2007 and Pence, Karen “Homeownership and Mortgage Initiatives” August 22, 2008 in Synopses of Selected Research on
Housing, Mortgages, and Foreclosures, Homeownership and Mortgage Initiatives, Research Subcommittee, Board of
Governors and the Federal Reserve System, page 58.
3
The CMPD requires all recruit officers to complete a problem-solving project at the conclusion of their field training. In most
cases, officers presented their analysis to the Chief and their Chain of Command in monthly meetings in each of the patrol
divisions. Officer Helton’s presentation identified a looming problem that had not been recognized by the department or the
city’s Neighborhood Development Key Business Unit.As he examined the problem, he discovered a significant number of vacant homes that had been the
subject of foreclosure. Vandalism, burglary, theft of appliances and metal were concentrated in the
neighborhood. The officer focused his energy on making sure the vacant homes were secure and
worked with neighborhood residents to develop an active association that could monitor the
properties.
This project led to a more detailed, department-wide analysis of the foreclosure problem and the
identification of 12 other neighborhoods that were experiencing enormous problems. One of the
neighborhoods was mentioned in a March, 2008 Atlantic Monthly article on mortgage foreclosure:
At Windy Ridge, a recently built starter-home development seven miles northwest of
Charlotte, North Carolina, 81 of the community’s 132 small, vinyl-sided houses were in
foreclosure as of late last year. Vandals have kicked in doors and stripped the copper wire
from vacant houses; drug users and homeless people have furtively moved in. In December,
after a stray bullet blasted through her son’s bedroom and into her own, Laurie Talbot, who’d
moved to Windy Ridge from New York in 2005, told The Charlotte Observer, “I thought I’d
bought a home in Pleasantville. I never imagined in my wildest dreams that stuff like this
would happen.” 4
By the time the Atlantic Monthly article appeared, the mortgage foreclosure problem had hit
homeowners, government at all levels, financial institutions and the police right between the eyes.
Everyone was scrambling to respond to a problem that had shaken America’s economic foundation
and was exacerbated by the failure of some of the largest financial institutions, increasing
unemployment and the belt tightening required by local government due to revenue reductions.
Mortgage foreclosures are an important national problem to be sure – but what can the police do
about a problem that has overwhelmed government at every level and caused many private
sector companies to collapse? This paper seeks to answer that question by focusing on two areas.
The first is to help the police understand the impact of mortgage foreclosures on workload, crime and
neighborhood safety. The second is to outline steps the police can take with local government and
community partners to minimize the effects of mortgage foreclosures on neighborhoods. This paper
addresses why the police should care about this problem by looking more broadly at how it affects
them and the neighborhoods they serve. It will highlight various responses that cities, police and
community organizations such as community development corporations (CDCs) have taken to deal
4
Leinberger, Christopher, “The Next Slum?” Atlantic Monthly, March 2008,
http://www.theatlantic.com/doc/200803/subprimewith the problem. And, it will identify specific actions the police can take along with partners to
respond and minimize the impact of foreclosures on communities.
MORTGAGE FORECLOSURES – IMPORTANCE TO THE POLICE
Using data on foreclosures, neighborhood characteristics, and crime, we find that higher
foreclosure levels do contribute to higher levels of violent crime. The results for property
crime are not statistically significant. A standard deviation increase in the foreclosure rate
(about 2.8 foreclosures for every 100 owner-occupied properties in one year) corresponds to
an increase in neighborhood violent crime of approximately 6.7 percent. Dan Immergluck
and Geoff Smith5
Immergluck and Smith’s 2005 report examines the connection between neighborhood crime and
single-family mortgage foreclosures. It is the study most often cited in the media and elsewhere
establishing a relationship between crime and foreclosures. They analyzed data from the City of
Chicago from 1995 to 2002 and concluded, well before the increased foreclosures of the past few
years, that there is a relationship between mortgage foreclosures and violent crime. Another study by
Clark and Teasdale concluded that “subprime lending is significantly related to crime rates, across
census tracks in Akron.”6 In Jacksonville, Florida the three zip code areas with the most murders are
also the three leading areas for mortgage foreclosure actions.7 In Lee County, Florida, where one in
four houses is vacant, residential burglaries jumped 35% and robberies 58% in the first six months of
2007.8
In Charlotte, CMPD Analyst Mike Bess found that foreclosures lead to higher crime rates and
increased police workloads based on a neighborhood analysis of calls for service and property and
violent crime between the years 2003 and 2006. He found:
• Violent crime rose consistently during the 5-year period in the high-foreclosure
neighborhoods, but remained significantly lower in the low foreclosure neighborhoods,
except in 2004.
Immergluck, Dan and Smith, Geoff. The Impact of Single-Family Mortgage Foreclosures on Neighborhood Crime.
Woodstock Insitute: Chicago, 2005, page 1. www.woodstockinst.org
6
Clark, L. and Teasdale, B. , 2005-11-15 "The Impact of Mortgage Foreclosures on Neighborhood Crime Rate" Paper
presented at the annual meeting of the American Society of Criminology, Royal York, Toronto . 2008-10-09
from http://www.allacademic.com/meta/p33959_index.html
7
City of Jacksonville, FL High Crime, Foreclosures and Abandoned Properties, Thursday, 28 September 2006 – Safeguard
Properties, http:www.safeguardproperties.com/content/view/958/106/• Property crime and related service calls spiked in 2004, fell sharply in 2005, and rose
slightly in 2006. Violent crime followed a similar pattern in 2006, seemingly
corresponding to an increase in housing units foreclosed that year. A number of these
neighborhoods were built in 2004, and many homes experienced appliance and building
material thefts.9
There are many other news media accounts and reports that cite relationships between mortgage
foreclosures, neighborhood decline, increased crime and calls for police service in cities across
America. In a National League of Cities survey, nearly two-thirds of respondents said that mortgage
foreclosures increased in 2007; 18% of these cities made budget adjustments to deal with declines in
revenue and increased service needs.10
The following excerpt of an Associated Press article further captures the range of problems the police
face in neighborhoods hit by large numbers of foreclosures:11
Eighty-five bungalows dot the cul-de-sac that joins West Ontario Avenue and East Ontario
Avenue in Atlanta. Twenty-two are vacant, victims of mortgage fraud and foreclosure. Now
house fires, prostitution, vandals and burglaries terrorize the residents left in this historic
neighborhood called Westview Village.
"It'
s created a safety hazard. And if we have to sell our house tomorrow, we' re out of luck,"
said resident Scott Smith. "Real estate agents say to me '
We're not redlining you, but I tell my
clients to think twice about buying here.'"
Smith, the vice president of Westview Community Organization Inc., keeps a map of the
area, tracking each vacant property and notifying local officials when criminal activity is
suspected.
They've seen a lot of prostitution in the area, vagrants wandering in and out of the empty
houses and drug activity," said Officer Dakarta Richardson of the Atlanta code enforcement
department. "Some people that I talked to are afraid to walk out of their homes at night."
9
Bess, Michael. “Assessing the Impact of Home Foreclosures in Charlotte Neighborhoods” Geography & Public Safety,
Volume 1 Issue 3 | October 2008, pps. 2-3.
McFarland, Christina and McGhan, William. Housing Finance and Foreclosures Crisis: Local Impacts and Responses,
Research Brief on American Cities, National League of Cities, April, 2008, p. 1.
11
The Associated Press, Squalor, crime follow wave of foreclosures: Middle-class, new developments reeling from vacant
homes, shady renters, Tues., Nov. 13, 2007In addition to increased neighborhood crime and calls for 12 indicted in Atlanta mortgage fraud
scheme
service, the mortgage foreclosure crisis is also causing some
Local authorities said Monday they
police agencies to establish mortgage fraud investigative charged 12 men with an elaborate
mortgage fraud scheme in Atlanta’s West
units. In Florida, the Miami-Dade Police Department is a End neighborhood and seized more than
major partner in a mortgage fraud task force created by the $200,000 of assets.
county mayor that includes police, business, regulatory In indictments filed last week, Fulton
County District Attorney Paul Howard Jr.
agencies and a group dedicated to education.12 In April, 2008 accused the men of buying and selling
nine homes using false appraisals that
they announced the arrests of 15 people who were indicted for were more than double the homes’ actual
defrauding more than $17 million dollars from financial value. Seven of the houses were in the
30310 zip code in the West End, where 26
institutions.13 The Atlanta Police Department created a full homes were put up for foreclosure auction
in late June.
time mortgage fraud unit in 2006. They had experienced an
increase in the number of mortgage fraud reports and were By KRISTI E. SWARTZ
The Atlanta Journal-Constitution
able to make use of the Georgia Mortgage Fraud Act passed Monday, September 15, 2008
by the legislature in 2005.14 Other police departments have
established investigative units or directed fraud investigators to focus on mortgage fraud as the
problem has grown over the past few years.
RESPONDING TO THE CRISIS: FOUR CITIES’ STRATEGIES
The impact of mortgage foreclosures was first felt by neighborhoods and local governments. As
neighborhoods became plagued with abandoned houses, crime increased. Because regulation of the
lenders is primarily a state and federal responsibility, mortgage foreclosure was largely outside a
city’s authority to control. And it quickly grew well beyond their financial capability to address at
the root level. While local governments lobbied and waited for new legislation and assistance from
state and federal government, they implemented programs focused on areas within their control. The
key focus was on helping homeowners to avoid losing their homes and minimizing the impact on
neighborhoods where properties had already been foreclosed or abandoned.
Taylor, Charles, Miami-Dade Task Force Targets Mortgage Fraud,
http://www.naco.org/Template.cfm?Section=Community_and_Economic_Development&template=/ContentManagement/
ContentDisplay.cfm&ContentID=25803
13
6 Miami-Dade Mortgage Fraud Defendants Plead Guilty To Roles In $17 Million Mortgage Fraud Enterprise, Florida
Attorney General News Release, April 18, 2008.
14
McFall, Robert, The Law Enforcement Approach to Fighting Mortgage Fraud, Atlanta Police Department,
http://www.aiatlanta.org/pdf/state_of_atlanta-2007/mcfall-real_estate_fraud.pdfMinneapolis, Minnesota
The City of Minneapolis has been dealing with the mortgage foreclosure crisis for several years. At
the time of this publication, city officials projected 3000 foreclosures in 2009. They have been
aggressively working to minimize the impact on
individuals, neighborhoods and the city. Their strategic
The City of Minneapolis is Minnesota’s
largest city with a population of 377,392 plan focuses on three areas: prevention, reinvestment and
in a 58 square mile area. The city has
162,352 housing units with a median
repositioning with a goal of helping the real estate market
household income is $37,974 and 21% of recover. 15
the residents over 25 years old have at
least a bachelor's degree. Minneapolis is
ethnically diverse with a population that is The prevention leg of the strategy provides homebuyer
65% white, 7% Hispanic, 18% black or
African American, 6% Asian and 2% education, foreclosure counseling and issues loans for
American Indian.
reinstatement of mortgages. Reinvestment involves
http://en.wikipedia.org/wiki/Minneapolis rehabilitation and sale of foreclosed homes. The third leg
– repositioning – is designed to expand homeownership incentives through help with down payments
and closing costs.
As a part of their overall strategy Minneapolis Police Department
Minneapolis is: Problem Properties Officer
• Providing easy access to
foreclosure counseling and The Minneapolis Police Department’s Problem Properties Officer
has taken a lead role for the police department in working with
assistance programs using the community and other entities to deal with the impact of
Minneapolis 311 mortgage foreclosures on neighborhoods. Their process involves
• Working with neighborhood several steps:
organizations and developers
to revitalize housing in areas • Problem Property identified through community police
hardest-hit by foreclosures • Investigation focuses on identifying the owner and the nature
of the problem - foreclosure, drug activity, parties, etc.
• Securing and maintaining
• Options are identified - warn, cite, vacate, secure property.
vacant properties until they
• Option implemented
are sold • Follow-up: regulatory services, Safe Teams, property
• Investigating suspicious real management, financial institutions, etc.
estate practices and working • Information is entered into a database
with state, county, and
federal government officials
to enforce Minnesota and federal laws.16
15
The Minneapolis Foreclosure Response, Three Point Plan
http://www.ci.minneapolis.mn.us/cped/docs/Mpls_Foreclosure_Recovery.pdf, p 2.
http://www.ci.minneapolis.mn.us/foreclosureThe city has also taken advantage of other opportunities to further its strategy. In November, 2008
the City Council approved a $5.6 million plan to use federal Neighborhood Stabilization funds for
acquisition and redevelopment of neighborhoods with the greatest concentrations of foreclosed
properties. 17
Minneapolis and its twin city St. Paul were selected as the first two cities in the nation to pilot the
First Look program. They were selected because of their hard work in establishing collaborative
relationships with government, developers, nonprofits, real estate brokers, community groups and
financial institutions.18
First Look was developed by the National Community Stabilization Trust, a consortium of non-profit
housing and community development organizations including Local Initiatives Support Corporation,
Enterprise Community Partners, Housing Partnership Network, and NeighborWorks America. The
goal of First Look is to engage the private sector on a long term basis to recreate a normal real estate
market through strategic investment. 19
The Twin Cities Family Housing Fund has also dedicated $16 million to its new Home Prosperity
Fund to activities such as rehabilitation of foreclosed homes and helping low and modest income
people reenter the housing market. 20
Minneapolis recognized the mortgage foreclosure problem
early and has positioned itself to take full advantage of the Boston, one of the oldest cities in the US,
is the capital and largest city of the
new resources coming its way through federal assistance Commonwealth of Massachusetts. Boston
and private sector initiatives. city proper had a 2007 estimated
population of 608,352, making it the
twenty–first largest city in the country -
Boston, Massachusetts 57% White, 23% Black, 9% Asian and
10.2 other races. Boston has 239,528
households, and 115,212 families residing
The City of Boston began tracking mortgage foreclosures in the 48 square mile city – the fourth
following the huge numbers it experienced in 1992 when most densely populated in the US. There
are 251,935 housing units at an average
foreclosures reached 40% of residential real estate sales.21 density of 5,203 per square mile.
http://en.wikipedia.org/wiki/Boston
17
Minneapolis approves $5.6 million foreclosure plan,
http://www.ci.minneapolis.mn.us/news/20081121HUDForeclosureFundsApproved.asp
http://www.ci.minneapolis.mn.us/mayor/news/20081113newsmayor_firstlooklaunch.asp
19
Ibid.
20
National League of Cities, Foreclosure Prevention Brief February, 2008
21
Boston Indicators Report, Mortgage foreclosures by Boston neighborhood, 1990 – 2002, The Boston Foundation,
http://www.tbf.org/indicators/housing/indicators.Boston Police Department This put them in a position to
see the spike near the end of
The Boston PD plays an important role in supporting the city strategy to
address mortgage foreclosures. Over the past several years they have: 2005 and beef up their
intervention services in 2006.
• Served on the City’s Foreclose Intervention Team to ensure
police service is integrated with other interventions. Also in 2006, Boston Mayor
• Community Service Officers have helped with early
identification of problem properties. Thomas Menino brought the
• In a partnership with the Special Services Division, the Boston
PD assigned additional resources to one neighborhood plagued
banks together to develop a
by gangs and violence. Their worked reduced crime and allowed strategy to help combat the
private contractors to rehabilitate 18 homes for resale.
• Supported and assisted with the ordinance that requires property growing problem. Out of
owners to register property and post a sign with a local contact
number. those meetings came the First
Choice Lender Program in
which banks agreed to: 1) require truthful labeling in all mortgage offers and advertising, 2) require
licensing of mortgage originators, and 3) establish a statewide foreclosure prevention counseling
network and a 60-day foreclosure freeze for homeowners signed up with one of these agencies.22 In
addition the City:
• Expanded foreclosure intervention counseling services and call center
• Purchased foreclosed properties, rehab and re-sell.
• Established an ordinance that requires mortgage servicers to register with the City, so that the
City can locate the responsible party if a property is not properly managed
• Created a Foreclosure Intervention Team (“FIT”) to deliver coordinated and focused City
attention on areas most heavily impacted by foreclosures. These services included: increased
police activity, street improvements, new street trees, stepped up code enforcement, graffiti
removal, acquisition of foreclosed properties and targeted assistance to existing homeowners.
• Expanded the Foreclosure Prevention Initiative. Two of the seminar programs “Can You
Really Afford “That” Mortgage?” and “What Homeowners Need To Know About
Foreclosures, Before It’s Too Late”
Boston’s Mayor also took the lead in working with the state legislative delegation to enact state laws
that included the provisions of The FirstChoice Lender program. By the end of 2007, all three
elements were largely enacted either through regulation or through the anti-foreclosure law signed by
the Governor in October 2007. 23
22
History of Boston’s Foreclosure Prevention Initiative,
http://www.cityofboston.gov/Dnd/hbs/C_Foreclosure_Prevention_history.asp
23
Ibid.Charlotte, North Carolina
Charlotte, NC began looking at mortgage foreclosures in Charlotte is the largest city in North
Carolina and an important economic
2005 when the police identified a significant number of
engine for the state. The 2007 population
foreclosures in the Brookmere neighborhood and estimate is 672,588 people. The city has
experienced remarkable growth over the
presented these findings to the city’s neighborhood last decade. Charlotte has 199
24 neighborhoods with 230,434 housing units
cabinet. In a presentation to the City Council Housing at an average density of 951.2/sq.mi. The
and Neighborhood Committee by the Neighborhood median income for a household in the city
is $48,670, and the median income for a
Cabinet, it was noted that between years 2000 and 2007, family is $59,452. 10.6% of the
population and 7.8% of the families are
mortgage foreclosure filings increased 244% from 2311 to below the poverty line. 5.4% White,
34.9% African American, 10.6%
7941. The number was projected to increase to 8300 in Hispanic, 4.4% Asian, 1.0% American
2008. About half of the filings resulted in the loss of a Indian and Alaska Native.
home.25 Further analysis by the police department and the http://en.wikipedia.org/wiki/Charlotte
Neighborhood Development Department identified 13 newly developed neighborhoods where
foreclosures were a significant problem and a tour of some of these neighborhoods by City Council
led to the development of a two part strategy to help address foreclosures and the issues that came
with them.
Education, Outreach and Advocacy component:
• Monitor and support state and federal foreclosure-related legislation
• Establish a website providing resources/referrals related to citywide foreclosures
• Conduct a targeted outreach campaign to residents in highly impacted foreclosure
neighborhoods
• Work with local pre-and post-homeownership counseling agencies
• Coordinate with financial institutions to make mortgage assistance available
• Work with state and federal agencies to implement foreclosure prevention and
intervention strategies
In 13 neighborhoods at the heart of
Neighborhood Preservation Strategy component: Charlotte’s most concentrated foreclosure
areas, police recorded 52 violent crimes
• Create a model to address a highly impacted and 395 property crimes last year. That’s
foreclosure neighborhood to include: not as high as troubled inner-city areas,
but it’s up 33 percent in three years and
o foreclosure prevention assistance it’s surprising in new suburbs.
o intervention and financial literacy -The Charlotte Observer, Dec. 09, 2007
counseling
24
The City of Charlotte’s organizational structure included several “cabinets” that provides support to City Council focus area
issues such as transportation, economic development, environment, community safety and housing and neighborhoods. The
Neighborhood Cabinet focused on both housing and community safety issues. It includes representation from the city
Neighborhood Development, Police, Planning, Sanitation and Engineering Departments as well as from the City Manager’s
Office and the county school system and human services.
25
Presentation to the Charlotte City Council Housing and Neighborhood Development Committee, April, 2008.o acquisition and repair of foreclosed and abandoned properties
• Progress on the implementation of the preservation strategy includes:
o An agreement with the Self Help Community Development Corporation, Habitat for
Humanity, and the Charlotte-Mecklenburg Housing Partnership to implement the
strategy.
o The Self Help Community Development Corporation has acquired 5 of the 25 homes
targeted for homeownership.
o The residents of Peachtree Hills (targeted neighborhood) have been engaged in a series of
meetings to develop a Service Delivery and Investment Plan.
o The CMPD conducted targeted neighborhood enforcement and organized youth
initiatives. Dayton is the county seat and largest city
o The Peachtree Hills Homeowner' s of Montgomery County. The population
Association developed a newsletter was 166,179 at the 2000 census and has
detailing capacity building efforts and declined to an estimated 152,090 (2008).
initiatives positively impacting their As of the census of 2000, there were
neighborhood. 166,179 people, 67,409 households, and
o The City and Mecklenburg County' s Parks 37,614 families residing in the city. The
population density was 2,979.3 people per
and Recreation Department partnered to square mile. There were 77,321 housing
address the lack of youth activities in the units at an average density of
neighborhood and the need for summer 1,386.3/sq mi. The racial makeup of the
employment. city was 53.40% White, 43.10% Black,
0.30% Native American, 0.65% Asian,
Dayton, Ohio 0.04% Pacific Islander. The population of
Dayton has been declining since the
1970s, as can be observed from portrayal
Dayton has been challenged by the decline its of historical population data.
population since the 1970s. Like other cities, Dayton http://en.wikipedia.org/wiki/Dayton,_Ohio
has worked with local non-profit groups to build new
homes on land donated by the city. They have also identified nuisance property lists, identified the
lenders and property managers, and encouraged residents to call the company CEOs to pressure them
to take care of their properties. In addition, the City has contracted with the non-profit group Home
Ownership of Greater Dayton to provide foreclosure prevention services – their goal is to reduce
foreclosures by 15% from 2005 levels by 2010.26
Dayton’s secret weapon though, is City Housing Inspector John Carter. He was recently recognized
as one of Governing Magazine’s prestigious 2008 Public Officials of the Year for his role in reducing
27
blight in neighborhoods related to mortgage foreclosures. Carter understood the difficulty of
determining who was responsible for properties and that a lender may not know the condition of a
Press Release: City of Dayton, City Commission Acts to Prevent Home Foreclosures, HOMEOWNERSHIP CENTER OF
GREATER DAYTON WILL EXPAND SERVICES, Wednesday, September 10, 2008
27
Fixer Upper By ALAN GREENBLATT, Public Officials of the Year, Photograph by Andy Snow, Governing, November
2008, http://www.governing.com/poy/2008/carter.htmproperty until it had created a problem for the neighborhood. He became the City’s “broker of blight” information source.28 He created a database and regularly notifies lenders and contractors through emails of properties that are on the city list of trouble spots – they generally respond within a couple of days to address the problem. Private contractors are maintaining over 250 homes that otherwise would have been boarded up by the city.29 Other Local Responses Like the cities highlighted above, local governments across America are wrestling with the impacts mortgage foreclosures have on their communities. Response strategies focus on two areas – prevention and mitigation.30 An important implementation step for both areas of the strategy is for local governments to know who holds the mortgages on homes that are in the foreclosure process or have been foreclosed. Cities like Chula Vista, CA, Lees Summit, MO, Riverside, CA and San Diego have passed ordinances that have features such as requiring lenders to provide notification of homes in foreclosure, registration, maintenance and contact information for the person responsible for managing the property. The Chula Vista ordinance makes the lender responsible for a vacant property as soon as the mortgage default is filed, even if the property has not been formally turned over to the lender. 31 These ordinances enable city staff to help connect homeowners with lenders and perhaps prevent foreclosures. When the foreclosures can’t be prevented, cities are in a position to minimize the problems of vacant homes that are not secured and maintained. POLICE ROLE Clearly the police have an important stake in helping deal with the impact of mortgage foreclosures in their community. Although the police are not in a position to take the lead on the mortgage foreclosure problem, there are a number of areas where they can make important contributions. 28 Ibid. 29 Ibid. 30 Immergluck, Dan, Community Response to the Foreclosure Crisis: Thoughts on Local Interventions, Federal Reserve Bank of Atlanta 30309-4470 P: 404/498-7200 F: 404/498-7342 W: http://www.frbatlanta.org/comm.cfm 31 Pierce, Emmet, Blight-prevention law emerges as a national model UNION-TRIBUNE STAFF WRITER, October 12, 2008
Problem Property Identification/Early The Leadership Role of the Chief of Police
Warning I have given considerable thought to the role of the
chief in dealing with the mortgage foreclosure crisis.
The police are in a unique position to help Some might argue that the police really don’t have a
identify problem properties and perhaps even role beyond the fraud aspect and even that might be
limited because federal law may be involved. I
provide an early warning for families in believe the police have an important role to play
because of the crime, workload increases and the
danger of losing their homes. By taking devastating impact on the neighborhood.
advantage of their normal monitoring
The leadership of the Chief is critical to ensuring the
activities – repeat calls for service, crime rate police are engaged in dealing with mortgage
changes and observation of homes on foreclosure issue. There are several things that are
important for the Chief to do:
neighborhood patrols – the police may be able
to identify problems before they have gone • Ensure that the department is closely
monitoring neighborhoods where there is a
too far. high rate of foreclosures
• Communicate the expectation that
commanders and officers work with other
One of the best methods for identifying agencies that are dealing with foreclosures.
• Encourage officers to identify problem
problem properties is to routinely examine
properties and to refer owners who may be
repeat call locations. Most police departments facing foreclosure to agencies for help.
• Make sure that community leaders are aware
have computer aided dispatch systems that of the impact of the foreclosure problem on
make it easy to research calls for service to a crime and neighborhood safety.
specific address or geographic area such as a neighborhood. A sudden spike in calls to a home, street
block or neighborhood should be analyzed to determine the reason for the change.
The same is true of a sudden change in reported crime in a neighborhood. There can be many reasons
for the spike – a one-time burglary spree or incidence truancy, for example – but it may also be an
indication of a more substantive change in a neighborhood. When officers are aware of the mortgage
foreclosure problem they can consider it in their overall evaluation of the neighborhood crime rate
change.
Neighborhood Associations/Watch
Police officers frequently work with neighborhood associations or neighborhood watch on a wide
range of issues. Mortgage foreclosures should be added to the list. Neighborhood groups can also
provide an early warning of a potential problem property when they notice a home has become
vacant or a vacant property has been broken into or not maintained. In fact, these groups are often in
the best position to limit the impact of a foreclosure on the neighborhood.Some neighborhoods have gone as far as providing additional security for vacant homes by keeping a
close watch on the property to ensure it is not entered or vandalized. Neighborhoods also have
organized to provide basic maintenance to these homes in the form of mowing the lawns and picking
up trash. These activities are important to ensuring that blighted properties do not take over the
neighborhood and the police can contribute by supporting
Letter to the Editor of the Providence
and encouraging neighbors to take on these activities Journal, 2008
when they can.
Dear Editor:
The community economic development
Referral Assistance industry in this City has made
unprecedented strides in recent years.
One of the daily contributions police make in serving their Since 2002, we have produced affordable
communities is in a referral role. The police frequently housing at six times the rate of the 1990s.
At the same time, under Colonel Dean
respond to calls for service or encounter people on the Esserman’s leadership, Providence is one
of only a handful of cities in the country
street who are dealing with problems that are not within that continues to enjoy significant crime
reduction. Behind these success stories
the authority or role of the police to address. They are
lies an unassailable reality: without the
able to refer people in these situations to resources that support and progress of the Providence
Police Department, we would not have
may be in a position to assist. achieved what we have - and conversely,
our work in reclaiming abandoned lots
and revitalizing neighborhoods has played
Officers are also in a position to identify families dealing a key role in supporting the efforts of the
PPD.
with the threat of foreclosure. The police respond to
As strategic allies, we count on Colonel
thousands of domestic disturbance calls each year. There Esserman and his team to provide critical
enforcement and problem solving support.
are many sources of family conflict but financial stress is Now is NOT the time to undercut this
very common. As officers help work through the conflict successful collaboration. The PPD needs
every dollar it has to continue to provide
and learn the family may be facing foreclosure, they can the manpower, managerial commitment
and strategic flexibility on which we all
refer them to agencies that can assist them in dealing with rely to maximize the progress we are
making as community developers.
the issue. Police departments should make sure that
officers are aware of the resources available to assist Barbara Fields, Executive Director, Rhode
Island LISC
residents in dealing with a potential mortgage foreclosure.
Be a Good Partner
The foundation of community policing and effective problem-solving involves strong partnerships
where agencies work together to address neighborhood issues. The mortgage foreclosure area is one
where police can make the greatest contribution by taking on a role of a strong contributing partnerby working with city/county agencies to minimize the impact of mortgage foreclosures on the community. It is clearly in the best interest of the police to assist in these efforts as their workload and crime can be affected by concentrations of foreclosed and abandoned property. Being a good partner may also include the police being an advocate for resources to fund mortgage foreclosure prevention and mitigation efforts or for partners to advocate for the police. In Providence, RI, the head of the Rhode Island LISC in a letter to the editor called on the Mayor and Council to maintain police funding because of the success they had enjoyed as partners over the years in achieving mutual objectives. Partnerships like these are invaluable in creating and maintaining viable neighborhoods in the face of the everyday challenges but are even more critical in facing challenges like the mortgage foreclosure crisis. Fraud Prevention and Education The police, in partnership with other agencies can make a difference in the impact of mortgage fraud through thoughtful prevention and education programs and information. Prevention and education should at least address the individual who may be victimized in the purchase of a home or in trying to resolve or avoid a mortgage foreclosure. Many of the people who have fallen victim to scams in the purchase of a home or in dealing with foreclosure struggle with understanding the complexities of these transactions. Because of the complexity, they are easy victims because they place their faith in very people who are taking advantage of them. In Portland, Oregon the police chief sends a letter to everyone that appears on the Notice of Default list.32 The letter contains basic information about the most common scams: foreclosure bail-out, mortgage elimination and equity skimming. The letter also provides information on other resources and encourages the recipient to contact the department’s fraud unit if they have been contacted or know of anyone who may have been a victim to a scam. The Miami-Dade Mayor’s Mortgage Fraud Task Force includes an education committee that focuses on public awareness of the problem. They have developed a brochure that warns potential buyers Mortgage Fraud, Foreclosure Scams, and Local Law Enforcement, http://www.cops.usdoj.gov/Default.asp?Item=2096
they may be participating in fraud if they engage in practices such as signing applications with information that is not true.33 Mortgage fraud is a complex crime that can take many different forms – the key in the education and prevention initiative is to try to connect before they are victimized and provide the link to resources that can help them make the choices most appropriate for their circumstances. Fraud Investigation Mortgage fraud has grown at an unbelievable rate – in 2004 the FBI indicated they received 17,127 mortgage fraud suspicious activity reports which had increased from 6,935 the year before.34 In 2007 they received 46,717 reports with $813 million in losses.35 Given the growth and impact of mortgage foreclosures on crime and workload, police agencies should consider assigning personnel to work with state and federal agencies in the investigation of mortgage fraud. The United States Attorney in the Eastern District of Missouri recently established task force in November 2008 that included five local police departments, federal agencies and private sector groups.36 Police agencies are able to make a contribution to addressing mortgage fraud problems in their own communities by participating in task forces such as these. THINKING STRATEGICALLY The steps identified above will help police respond more effectively to the mortgage crisis and its impact on crime and workload. But what would it look like if police leaders were thinking strategically about crime, fear and safety in neighborhoods? Would their role be different? Would police engage in the process of development and redevelopment of neighborhoods? Could the police have a greater impact on neighborhood stability and reduce the negative outcomes of mortgage foreclosure? Would their partnerships be different? Thinking strategically requires police leaders to look to the future to create greater value in their contribution to the overall quality of life in the community. It is outcome focused and externally 33 Ibid. 34 http://www.fbi.gov/publications/fraud/mortgage_fraud06.htm 35 www.fbi.gov/publications/fraud/mortgage_fraud07.htm 36 http://stlouis.fbi.gov/dojpressrel/pressrel08/sl111208.htm
oriented. It is thoughtful dreaming about a future where police exploit the full range of their potential
contributions to community safety.
Development/Redevelopment
Mortgage foreclosures have devastated neighborhoods across America and left in their wake
increased crime and police workload. Neighborhoods decline for other reasons as well and contribute
to housing values slumping and increased rental property – often leading to police workload
increases. If police leaders were thinking strategically, they would want to position their
departments in a way that they can play a more influential role in the development and
redevelopment process.
In a neighborhood stabilization plan developed by Community Works Rhode Island (CWRI) for the
Central Southside in Providence the police are as a key part of the planning collaborative. In
addition to helping identify “hot spots” in this area, the police are committed to working with CWRI
to engage in initiatives designed to mitigate factors that contribute to destabilizing the
neighborhoods.37 In Charlotte, NC the Housing Partnership collaborated with the police by
purchasing several rental properties that had been the location of a longstanding heroin dealing
38
location. Both of these police departments developed relationships and partnerships with
community development corporations that provided the opportunity for mutually beneficial
collaboration.
The police can also bring expertise and knowledge to the table in any new development projects if
leaders are thinking strategically. If the police imagine a future where they routinely engage with
planners and developers in the design of new neighborhoods, apartment complexes, public facilities
such as schools and commercial projects, they can position themselves in a way to create that
opportunity. Using Crime Prevention Through Environmental Design (CPTED) principles, police
can provide helpful insight into minimizing situations that contribute to crime and fear.39 They can
also contribute to efforts to manage traffic flow or influence zoning decisions related to alcohol sales
locations in neighborhoods.
37
Neighborhood Stabilization Plan Heart of Central Southside Providence, Community Works Rhode Island, January 20, 2009
38
The Housing Partnership was involved in larger redevelopment effort close to the drug dealing location. The purchase of these
properties helped their effort as well as helping the police address a significant problem.
39
CPTED involves five areas – natural surveillance, natural access control, territorial reinforcement, maintenance and target
hardening to reduce the real and perceived opportunity to commit a crime.Although there are examples of police departments actively engaging in the development and redevelopment process, it is far from being a mainstream strategy. In too many cases the police are not taking a long term strategic view of neighborhood design, development and zoning policy as an important way to create safer communities. It is not exactly an apple to apple comparison, but the police could learn from the fire service in the way they have influenced building codes to install smoke alarms in residential property and sprinkler systems in commercial structures. Fire loss and deaths from fires in urban areas have declined dramatically because of these efforts that have taken many years to implement. They developed a strong partnership with the insurance industry that helped overcome the resistance to these measures. Sustained Partnerships There are many examples of ad hoc partnerships the police have developed with neighborhoods and others to address particular problems. Those relationships often fade as the problem is reduced or eliminated. In thinking strategically about crime prevention and fear reduction police leaders must consider ongoing strategic partnerships with those who can affect contributing factors. Potential partners include other governmental agencies, private developers, community development groups, nonprofit social service agencies, neighborhood associations and many others. Thinking strategically, police leaders would look for ways to influence the processes involved in the development and redevelopment process. One of the most effective ways is to develop strong partnerships with those engaged in the process. The partnerships help can position police in a way that allows ideas on development or redevelopment to be given consideration. What is the public policy on street lighting in newly developed neighborhoods, for example? What are the guidelines for sidewalks? What is involved with putting traffic calming measures in place? How are decisions made on connectivity between neighborhoods? What are the policies on the location of convenience stores and the sale of alcohol? How are decisions made to locate recreational programs and facilities? There are many other questions that may affect community safety. In many cases the police are not present to provide their input and recommendations. Investing in the development of partnerships with those who influence and make those decisions can position police to effectively use their knowledge and experience in creating and recreating safe and sustainable communities.
The police spend the majority of the resources provided by the public dealing with events that have already occurred. In responding to crime reports, handling calls for service from the public and conducting follow up investigations the opportunity for prevention has been missed for those incidents. To be sure, dealing with these incidents are critically important police responsibilities and require considerable thought and planning to ensure they are done efficiently and effectively. The challenge for police leaders is to carve out sufficient time and resources to think strategically about how they might be more effective in the prevention arena. CONCLUSION Mortgage foreclosures continue to take their toll on neighborhoods across America. A recent USA Today article indicates that mortgage foreclosure filings jumped by 46% in March 2009 over 2008 as temporary moratoriums lapsed.40 It is clear that police will continue to face the impact of foreclosures on neighborhoods for some time to come. It is also clear from work in Providence, Minneapolis, Boston, Charlotte and elsewhere the police can make a contribution to reducing the negative impacts on neighborhoods by working with partners in government and the community. Strong police executive leadership is the key to ensuring that police are in a position to deal with the mortgage crisis of today and to build safer communities for tomorrow. ABOUT THE AUTHOR Darrel Stephens is currently at the Johns Hopkins University – Public Safety Leadership Program Director of State and Local Programs and faculty member. Stephens retired in June 2008 after serving 9 years as Chief in Charlotte-Mecklenburg, NC and a 40 year career in policing that included serving as Chief in St. Petersburg, Newport News and Largo, FL. He was the PERF Executive Director for seven years and a City Administrator in St. Petersburg for two years. He began his career in the Kansas City, MO PD in 1968 and was involved in the Police Foundation research as a young officer in the early 1970s. He spent ten months as an NIJ Fellow in 1974/74. Stephens has published extensively and co-edited the ICMA Police Management text. He is a member of the NIJ/Harvard Executive Session on policing. He frequently speaks on policing issues and progressive approaches. He is the recipient of both the PERF Leadership Award and ACJS O.W. Wilson Award. He was elected a NAPA Fellow in 2005. In 2006 he was awarded an Honorary Doctorate of Laws Degree from CMSU. He holds a BS degree in the Administration of Justice from the UMKC City and an MS in Public Administration from CMSU. Foreclosures Take a Big Jump, Stephanie Armour, USA Today, April 16, 2009.
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