Politics & Government

Dundalk Leaders Fear Housing Crisis Jeopardizes Community

During a meeting with state Comptroller Peter Franchot on Tuesday, Dundalk officials raised worries about mounting foreclosures and investors converting homes into Section 8 rental properties.

State Comptroller Peter Franchot's Tuesday morning meeting with Dundalk leaders was supposed to have focused on how tax credits and other government efforts were helping to revitalize the historic Dundalk Shopping Center.

Instead, with rain delaying a walking tour of the shopping center, the discussion inside the (DRC) offices quickly turned to the area's housing crisis.

Baltimore County Council Chairman John A. Olszewski Sr. praised the DRC's work, which is funded by the county, but quickly turned his attention to foreclosures in Dundalk. Olszewski asked Franchot about the potential for a pilot program to assist home buyers.

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The councilman expressed two majors concerns: the large number of homes in foreclosure and the likelihood that investors would convert them into Section 8 rental properties. Olszewski would prefer that the houses are sold to new homeowners committed to living in Dundalk.

He also said potential buyers are struggling to come up with required down payments, which have risen, as well as closing costs.

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“It needs to be more affordable for home buyers to come in,” Olszewski said.

Sellers whose homes have lost value can not afford to assist buyers with settlement costs, Olszewski said.

“We have to find a way for people to become homeowners,” Olszewski said, adding that he’s been shocked driving around Dundalk at the number of homes with white papers in the window explaining the houses have been winterized while vacant.

Donna Bertoni, a real estate agent at RE/MAX Signature, said currently 62 homes that are actively for sale or under contract are foreclosures.

Bertoni noted that many local families are paying more in monthly rent than they would be under a mortgage for a similar or even newer home in better condition. However, they lack the savings, credit or financial literacy to buy a home, problems that can be overcome with education, she said.

“There are $7,500 federal home grants available right now,” Bertoni said.

Renaissance Corporation Executive Director Amy Menzer said Dundalk is filled with residents who have built strong community ties after living here for many years.

“If people buying homes are overwhelmed by investors, this will be lost," Menzer said.

She said that the school-age population in Dundalk already comes almost entirely from the rental population. “That creates turnover and a lot of other challenges,” she said.

Olszewski said, however, that with a new and being built, there’s an opportunity to keep and attract young families in the area—if something can be done to assist potential home buyers.

“I don’t want to put money into the schools, and have the entire school population still coming from rental population,” Olszewski said.

Franchot said a lot of places around the state are in a similar position as Dundalk.

“We keep looking for the bottom [of the housing market],” Franchot said, adding that economic experts now fear a double-dip recession with increasing oil prices.

“Let’s see if we can do something, not just with the county, but with the state and federal government,” Franchot said, pledging future meetings about the issue.

Olszewski later added that the 2005 Defense Base Closure and Realignment Commission (BRAC) was expected to bring more jobs and families to Baltimore County, but even that expectation has been stalled by the recession.

Fred Theiss, an administrative assistant with state Sen. Norman R. Stone Jr., said that the concentration of subsidized housing is growing locally, but that with new home construction, and assistance for buyers, that still could change.

Historically, Menzer said, Dundalk has had a higher-than-average homeownership rate for Baltimore County.

Franchot, who after the meeting said he was generally pleased with outcome of the General Assembly's handling of fiscal issues and dismissed rumors that he’s already decided to run for governor in three years, said Dundalk has a good story to tell would-be homeowners. The community just needs to get the word out.

Menzer agreed.

“We have beautiful parks and waterfront parks,” Menzer said. “People who don’t live here might not know that. They might not think there are any trees at all. In the past, other people have been telling our story, too often, dumping on Dundalk.”


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