Showing posts with label Housing. Show all posts
Showing posts with label Housing. Show all posts

Sunday, May 31, 2015

THE HANKS HOUSING CRISIS CONTINUES

Mayer David Hanks and his Photo Op!
Opinion Editorial
By Joseph Wiszowaty

Driving through Sauk Village these days would bring tears to many who once grew up or raised their families in this small community in the Southeast Suburb of Chicago.   The first question they may wonder is what went wrong?  Today, according to Cook County statistics for 2015 there are 480 vacant homes in Sauk Village and what’s worse is that Cook County projects vacant homes to grow to 532 in the next five years.

Well, yes the economic downturn of 2008 really took its toll on the home values.  As many folks mortgaged their homes to the rafters with the cheap cost of money, as values fell investors found opportunity for rental properties.  Many simply walked away from their homes or sold out in short sales to investors who in turn rented those homes out to tenants fleeing the City of Chicago when former Mayor Richard Daley closed the housing projects.

They say hindsight is 20/20, well we can see what went wrong.  As values dropped drastically in 2009, the Federal Government through the Department of Housing and Urban Development began offering communities millions of dollars in Neighborhood Stabilization Programs.  Many communities took advantage of these NSP dollars to help shore up their housing markets from 2009 to 2012.  Now most of the NSP monies are dried up and Sauk Village has been left out in the cold.

Neighborhood Stabilization Program (NSP) grant is to support the redevelopment of foreclosed, vacant, or abandoned property or land through demolition, new construction, acquisition, and/or rehabilitation activities. The primary goals of the program are to stabilize communities disproportionately affected by the foreclosure crisis and to create or preserve affordable rental or ownership housing for low- and moderate-income households.  Cook County has distributed millions of dollars in NSP money to municipalities.

Now Mayor David Hanks, served as Chairman of the Housing Authority from 2009 to 2012 when he became acting mayor.   During his time in charge of the Village’s housing crisis, Hanks and most of the Village Board were too self absorbed with playing politics with then Mayor Lewis Towers instead of addressing the housing crisis and obtaining NSP dollars to shore up the Village’s housing crisis.  Many communities used NSP money to encourage homeownership opportunities, Sauk Village received $0 in NSP money to help.

Shortly after becoming Acting-Mayor, Hanks began to campaign for election, after stating publicly he would not seek election, that they were so busy fighting Lewis Towers that they were “blinded” by the housing crisis and didn’t see the eyesores of the vacant and abandoned houses.  ***CLICK HERE TO VIEW*** fast forward to 2:58 and listed till 3:33

2014


2009

What is Hanks’ plan for Housing you may wonder as we continue down the path of further deterioration?  Well we wonder too and to date there has been no plan put out publicly.  While Housing Commissioners, exceeding their mandate, have been working on housing issues by identifying vacant properties, there has been no long range plan.  The Village received a grant through the Illinois Housing Development Authority to secure and maintain vacant and abandoned houses, the housing commission identified only 100 out of the 480 vacant homes in which grass mowing would be done in 2014.  Unfortunately, the grant money was for reimbursement of monies spent by the Village and controversy ensued when there was no money budgeted for the grass mowing initiative in 2014.  As a result of Hanks’ misstep on the budgetary oversight last year, the Village Trustees had to borrow money from the water fund in order to make payments.  Because of poor planning the IHDA was not prepared and many delays and changes happened with the grant program as a result of the change in administrations to Governor Bruce Rauner, the money has now been frozen.

What made matters worse, was the 2015-16 Budget that Hanks and his Bobble Heads ramrodded through, did not include a single penny toward any housing initiatives nor any grass mowing for that matter.  But he found $200,000 to hire just 2 new people, and yes they would be "outsiders" of course, how ironic!

Some housing commissioners have said on social media that resident’s should take up the slack and mow vacant properties and volunteers are needed to pitch in to maintain these properties, I beg to differ!  While it’s a “neighborly” thing to do, it exposes those individuals to danger and liability.   A stronger emphasis on Code Enforcement and a more aggressive and proactive approach is sadly missing from this Administration.  This administration is so focused on politics and less on policy that it continues to be “blinded” by the blight which has taken hold of Sauk Village, and according to Cook County will remain at least until the next administration.

In fact, this administration is all about “propaganda” as illustrated in the propaganda video Mayor David Hanks has on the Village’s official website ***CLICK HERE TO VIEW***  Can you believe this? 

Residents need to start asking David Hanks the “tough questions” and stop telling him, like one of his Bobble Heads, Trustee Lynda Washington, “you’re doing a fine job”.  Really Lynda?  I beg to differ!  Maybe now they will not be "blinded" by this housing crisis any longer!
 
Housing Opportunities:
 
This one Won a HANKY Award! ------***22517 Yates Avenue****

Friday, October 25, 2013

SAUK VILLAGE'S HOUSING DILEMMA - 2nd in a Series

THIS IS A SECOND IN A SERIES ABOUT SAUK VILLAGE’S HOUSING CRISIS-
SAUK VILLAGE LACKS SOLUTIONS

by Joseph Wiszowaty
SAUK VILLAGE |  This is the second in a series of stories addressing Sauk Village's Housing situation.  Sauk Village has a very serious housing crisis including the housing conditions and property values.  Since the housing crisis began in late 2007, Sauk Village seems to have been completely unprepared for what was to transpire.
 
To answer the housing problems facing Sauk Village former Mayor Lewis Towers and current Mayor David Hanks have relied on the Housing Commission.  Some suggest that the Housing Commission is not equiped nor does it have the legal authority to address the problems.
 
When the Housing Commission of Sauk Village was formed it was formed to answer complaints of discrimination in housing. It was never intended to perform the duties of a housing authority. The Housing commission, by law, is not intended to act or perform the duties of a housing authority, yet we see that they are doing exactly that.

HAS THE VILLAGE EXCEEDED ITS  AUTHORITY?  (CLICK HERE AND READ LEGAL OPINION)
 
The Commission’s “powers” are as follows (CLICK THIS LINK TO VIEW THE CODE-per Sauk Village Municipal Code "Fair Housing" Sec 38-23):
1- Administer Oaths and take sworn testimony at hearings;
2- Subpoena witnesses and pertinent documents, and its subpoena power may be enforced by proper petition to any court of competent jurisdiction;
3- Issue orders and impose fines and penalties;
4- Require all persons subject to the application of this article to maintain such records as may be necessary to demonstrate compliance with the provisions of this article;
5- Submit to the Village an annual report and such special reports as it may from time to time deem advisable.
Keep in mind these responsibilities are as they apply to housing discrimination
 
Also, homeowners are required, per ordinance to notify the village if they “intend” to sell their home or rent their home.
 
The Housing Commission currently has no legal authority to carry out the mission that they are currently undertaking as it appears to have exceeded the mandate of the Corporate Authorities of Sauk Village. The Housing Commission has no authority to conduct surveys of vacant homes nor assist with the South Suburban Mayors and Managers Housing Bank, that clearly exceeds their authority established by ordinance.
 
A Housing Authority is an autonomous entity that are charged with handling many challenges facing communities housing issues including administration of housing grant programs and other housing initiatives. Housing Authorities have much broader power than housing commissions. In the mid-1990s Sauk Village had a Housing Authority which ran into controversy over the mismanagement of the Village’s Community Development Block Grant program. The Cook County States Attorney Investigation found many improprieties and the Village Board dissolved the Housing Authority.
 
So what is the answer to Sauk Village's Housing woes?  There are no housing initiatives to encourage first time home-buyers to buy homes as many other communities have established.  There is no homebuyer education classes or workshops to educate buyers on what they need to do in order to purchase homes in Sauk Village. 
 
Several emails and calls to the Housing Commission Chairman Gary Holcomb went unanswered.  Emails to Mayor David Hanks also went unanswered.

Housing Commission:  Heidi Parker, Gary Holcomb, Sharon Nowak, Ronnie Stark
Wanda Lemmell, Lawrence Stewart and Trustee John Poskin

Sunday, October 13, 2013

SAUK VILLAGE HOUSING DILEMMA

THIS IS A FIRST IN A SERIES ABOUT SAUK VILLAGE’S HOUSING CRISIS-
SAUK VILLAGE HOUSING HISTORY

By Joseph Wiszowaty
SAUK VILLAGE
| Sauk Village has faced many housing hurdles in the past 56 year history. In 1975, Sauk Village faced some tough economic times as area mills closed leaving many young homeowners and their families scrambling to make their mortgage payments.   Many homebuyers purchased their first homes in the late 1950s and 1960s using their Veterans Administration loan guarantee with virtually no money down. 

The late former Mayor Roger Theisen walked along Theisen Avenue in 1975, named in his honor in the Bell Air section, where brand new homes sat vacant for more than two years with no buyers. The Village was also battling the Cook County Forest Preserve District at the time which literally landlocked the Village’s eastward expansion.  That began a stall in housing expansion and by the early 1980s 20% interest rates pretty much killed it.

A longtime resident said “When I moved here in 1982, the house we purchased on was 3 years old. We bought from a young professional couple. Back then prevailing interest rate for mortgages were at 15%, but because we had just sold our first home, we were able to "assume" the couple's home at a low interest rate of 8.75%”.  Rising interest rates, unemployment and an economic downturn essentially stopped new housing in Sauk Village until the 1990s

Fast forward to the 2007, easy lending terms where a homebuyer could fog a mirror and get a mortgage led to a national mortgage meltdown. The Village’s housing expansion reached its pinnacle as Deer Creek homes were selling for the upper $200s and homes in Lincoln Meadows were reaching $300,000 and many in the older parts of the Village were well over $100,000. Home values plummeted and longtime owners began to literally walk away from their homes. Many older homeowners are still underwater owing more than $100,000 on homes valued at $50,000 and many still walk away. Sauk Village has not been exempt from the exodus and housing crisis.

Many long-time residents of the Indiana Hills subdivision wonder what is to become of Sauk Village. “We have lived here for 50 years” a longtime resident said. “We are so far under water on this house, we have no choice but to walk away. We will never get what we owe on it” the homeowners said. “We worked our entire life and when our house needed work we refinanced and put the money back into the home. We weren’t irresponsible, we thought we were investing in a home was a safe move. We were wrong” they said.

From 2008 to 2012, one of the only tools offered through the Village were NACA seminars. NACA stands for Neighborhood Assistance Corporation of America is a private organization which set out to help homeowners under water renegotiate their mortgage terms through loan modifications. Since NACA set out many national lenders, through legislation, have been offering Home Affordable Refinance Programs (HARP) and Home Affordable Modification Programs (HAMP).

Lenders have been incentivized and loans guaranteed by the Federal Government for HARPs and HAMPs. In fact many major lenders have even forgiven mortgage loans and offered cash payments to some who lost their homes through a national settlement.

Sauk Village faces similar housing challenges today. Vacant homes, foreclosures and investors have caused property values to plummet to record lows not seen since 1960. While many areas of the nation have seen modest gains in property values and many areas have recovered to pre-2008 values, Sauk Village lags way behind. Some homes still are selling for $10,000 which have been keeping values low.


Sauk Village's "Rainbow" Welcome Sign 1978
 
CHECK BACK FOR OUR SECOND EDITION ON SAUK VILLAGE’S HOUSING CRISIS…