In 2009, the peak of the housing foreclosure crisis, Brooklyn Park had 950 foreclosed homes. As of mid-March this year, Brooklyn Park is in the single digits, a historic low.
The improvement of the housing market helped. But Brooklyn Park was also able to reverse the trend by teaming up with the federal government through the Neighborhood Stabilization Program, where the city received money to rehab homes and provide support for families at risk of foreclosure. Through the program, Hansen says the city was able to rehabilitate almost 200 homes.
"So we found that that investment has translated into others wanting to stay in the neighborhoods and hopefully that’s helped turn the trend," said Erik Hansen, Brooklyn Park’s economic development and housing director.
In a normal year prior to the foreclosure crisis, Hansen says Brooklyn Park would have about 150 foreclosed homes a year.
"We’ll have maybe 35 to 40 foreclosures if that holds through the year, which is well below what we’ve seen historically," Hansen said.
While market forces have played a big role in the steady decline in foreclosures, Hansen says the city’s Economic Development Authority still plans to intervene where they can, with the hope that history won’t repeat itself.
"We don’t want to go back, so even though we have kind of declared victory on the foreclosure crisis, they established a new program, so we’re going to continue to do rehabilitation of homes, in vacant homes in neighborhoods, so that we don’t see that kind of perpetuate through the neighborhoods," Hansen said.
March 29, 2017