Stabilizing Communities: A Federal Response to the Secondary Impacts of the Foreclosure Crisis

In this 2009 report for The Brookings Institution, Alan Mallach contends the federal government has not only failed in its efforts to stop foreclosures, but is also unprepared to stop the secondary impacts of the foreclosure crisis.  In order to mitigate the community‐level impacts, Mallach proposes a four‐part strategy for the federal government that provides state and local leaders with the tools to stabilize affected neighborhoods and promote market recovery in the wake of the mortgage crisis. 

Mallach's strategy includes:

1)  A redesigned and multi‐year neighborhood stabilization program to facilitate market recovery

2)  Establishment of a Land Banking Entity to finance the acquisition of distressed properties

3)  A targeted federal tax credit to further stimulate market recovery in areas affected by foreclosures

4)  A national mortgage and foreclosure database to aid neighborhood stabilization planning and execution

Read the Report