Okay, this isn’t necessarily my solution, just the most recent thing I’ve come up with, but it would take a LOT of effort for it to happen, and there are probably a great many problems to it as well (my more conservative brethren can speak up now). But, here’s my idea.
I think urban centers that have experienced the negative affects of absentee landlords (many slum lords) and now the recent foreclosure crisis, should make homesteading mandatory in those neighborhoods. What homesteading means is that a home must be owner occupied, they must live there. I slightly looser option would be that all owners of property in that zip code or neighborhood must live in the same neighborhood. Basically, this would mean you can only own property in the neighborhood if you lived in the neighborhood.
One of the primary things I believe this will do is create a vested interest in the community. Many of our problems today from slum lords to sweatshops exist because we are able to distance ourselves from the injustices we often passively (or actively) contribute to and participate in. Requiring all owners of pieces of a community to actually be a part of that community would create geographic proximity that would build awareness and sensitivity to the problems within that community.
As it relates to the foreclosure problems currently, it would force banks to liquidate the properties in a community, rather than being able to sit on vacant houses in hopes of riding out the low parts of the real estate trend. And, those properties would then be available to people who are interested in living in that particular community and not a wealthy investor who is interested in the bottom line rather then the interest of the people in the community. This would more then likely drop the value of the property in a neighborhood considerably, since those interested in purchasing and living in the neighborhood might not have the financial means to offer what the previous market values might have been. However, the benefits of increased homeownership in a community, vested interest, and the possibility for individuals to build equity would far outweigh the loss in property value.
It seems this sort of thing has been done in a few cities before, but the goal was more for a sort of ‘urban renewal’ that brought middle and upper class folks back into cities. It in effect pushed the people of the neighborhood out and basically gentrified the neighborhood to the degree that the original people of the community were no longer there. I think efforts toward this sort of required homesteading would need to be done sooner in a city facing a lot of abandon and foreclosed houses, so that the original community isn’t displaced.
I haven’t thought through all the ins and outs but it seems like, with the right planning, it could be a very beneficial solution to many urban neighborhoods.