Foreclosure program faces opposition

Maitland City Council will hold a workshop on June 24 for a proposal that would have the city buy up foreclosed homes and rent them to its police officers. But the idea has already been shot down by the mayor.

On May 23, Councilman Ivan Valdes said a foreclosure-buying program would work to improve property values, lower crime rates and make the city an affordable place to live for those who work there. But during further discussion on Monday night, Mayor Howard Schieferdecker came out strongly against it.

Schieferdecker, also a developer, argued that buying vacant properties would be an irresponsible way to spend what little money the city has.

“I have a problem with it … this money is not ours, this money is our citizens’ money,” Schieferdecker said.

City’s 13 vacancies

Schieferdecker said Maitland doesn’t have an unusual amount of foreclosed single-family homes — 13 according to the Orange County Property Appraiser — and that buying two or three vacant homes will not make much of an impact. But he said it would pit the city against its citizens. “We would actually be competing with residents to buy these foreclosed properties,” he said. “The city should not be in that position.”

Valdes agreed that foreclosures are not a real problem in Maitland — yet — and said that if a citizen had a bid on a foreclosure, then the city would step down. “I’m more fearful of not doing something … one foreclosed home can be managed, two are a problem and four are catastrophic to a neighborhood.”

Schieferdecker said if the city has leftover money, it should go toward staff salaries. “They haven’t seen raises in a while. These people are working their tails off.” He also said a surefire way to up the tax base is new development. Only after the city pays off its bond debt, he said, should it implement a foreclosed home buying program.

But Valdes said foreclosed homes are tied to property values, citing that a vacant $2 million property could easily be worth $500,000 the following year. It’s better to nip the problem in the bud, he said.

Working out details

City Manager Jim Williams said $1 million could be allocated for the program, allowing the purchase of three or four homes.

Councilman Phil Bonus said that might be too much. “I don’t know if I want to commit $1 million to it … we should look at a few houses, maybe one or two to start out with.”

Six police officers have already expressed interest in renting a city-owned home. Valdes proposed that officers be given the option to purchase the home after four or five years. If an officer refused, it would be put on the market.

City as an investor

Maitland realtor David Earle, of Charles Rutenberg Realty, also expressed concern at Monday’s meeting about spending taxpayer money without having an eye on maximum return.

“I have mixed feelings about the city getting into the business of real estate investing. … My attitude is you buy it to make a profit,” Earle said.

But Valdes said that the city would see more return on the money under the proposal than if it sat in the bank. He also said many benefits would be intangible. “The value of having a police officer parked in Dommerich versus Oviedo when someone with wrong intentions is driving through that day … it goes beyond just dollars.”

Councilwoman Linda Frosch was hopeful that something useful would come out of the June 24 workshop.

“Even if it doesn’t turn out to be a good idea, it may spawn other ideas,” Councilwoman Linda Frosch said.

Learn more

A workshop to discuss the foreclosed-home-buying proposal will be held at noon Friday, June 24, in Council chambers at Maitland City Hall, 1776 Independence Lane.