NLC: Foreclosures Taking Toll on Cities

Nearly two-thirds of over 200 cities surveyed report that foreclosures have risen in the past year, and one-third say city revenues have fallen as a result, according to an online/e-mail poll conducted by the National League of Cities. "Mortgage foreclosures are causing havoc in many of our communities," said league president Cynthia McCollum. "Cities are already seeing reductions in their revenues at the same time that more services are needed to address the many related problems caused by the foreclosures." The organization said the ripple effects of the housing crisis on city finances were reflected in the fact that one-third of the surveyed cities reported a funding decline for various programs and projects in the past year. The poll also found that lenders in more than half the cities have not "reached out to local officials" to offer help in dealing with foreclosures and related housing finance problems.