by MarkJ » Fri 22 Jan 2010, 08:19:17
We have some poor sections of Upstate NY cities with similar issues. When industry, supporting businesses, the middle class, the upper middle class and wealthy moved out, it left pockets of cities with many century old vacant, abandoned or condemned structures, lead, asbestos, industrial mill waste and a much smaller tax base.
Many of the people that remained behind were poor, uneducated, unemployable renters, or poor and fixed income homeowners that couldn't afford to cut and run. Many single family homes were cut up into 2/3/4 Plus unit multi-family homes, then rented to low income tenants.
Many of the vacant tax auction properties were purchased by out-of-town slumlords, then rented to welfare tenants, criminals, thugs, sex offenders, disabled or retarded tenants.
Public housing projects, slumlords renting to Section 8 tenants, welfare motels and liberal welfare benefits attracted even more poor, uneducated, unemployable renters to these regions.
As tax base decreased and property values declined, cities were forced to raise tax rates and cut services which caused even more businesses and homeowners to move to neighboring towns, villages and suburbs.
In some of these cities, Medicaid spending alone consumes well over 50 percent of property tax revenue. The high property taxes alone prevent many people from renovating, building or selling.