Town of Summerville Planning Area - BCD Council of Governments

The fiscal impact on a municipality is due to a variety of factors. These factors can include1) The decrease in taxes from the drop in home value;2) Costs related to the eviction of residents3) Costs related to the auction or sales of the home;4) Cost of ensuring the home continues to meet code;5) Increased law enforcement costs;6) Potential demolition costs if a foreclosed home falls too far into disrepair; and7) The decrease in the tax base as a whole if clusters of foreclosed homes were to occur in acommunity.Conversely, the cost to keep a home out of foreclosure has been estimated to be between $3,000 and$5,000. Foreclosed homes also serve to depress the overall housing market, making it more difficult forexisting homeowners to sell their homes if circumstances required them to move or downsize.According to Realtytrac, a database that is the leading source of information on home foreclosures inthe United States, as of September of 2010, there were 864 homes in the Summerville area that were atsome point in the foreclosure process. Of these homes, approximately 454 homes are in preforeclosure,335 homes are owned by the banks, and 75 homes are being advertised for sale at auction by the localsheriff’s departments.ConclusionWhile there is a large range of housing options available for Summerville residents, much of the housingavailable in the town is traditional suburban tract housing, and a large portion of the housing stock hasbeen constructed in recent years. Because of these factors, a significant number of residents (nearly 30percent of all households in Summerville) are spending more than 30 percent of their gross income onhousing related costs, putting them at greater risk for foreclosure if an unforeseen life change (divorce,sickness, unemployment) occurs. Additionally, a portion of the local workforce is unable to afford to livein the Planning Area, and a more significant portion of the local workforce is unable to afford topurchase a home in Summerville. As previously discussed in the 2009 Comprehensive Plan Update,Summerville should look for opportunities to work to create quality housing that is safe and affordablefor all residents and workers within the Summerville Planning Area.Housing Element Page 19