Foreclosures:

Government help can’t come too soon for 89131 families

Blight in Vegas neighborhood chasing homeowners away

Tiffany Brown

Neal and Michelle Williams, who have owned their Las Vegas home for 13 years, have seen their neighborhood deteriorate as the ZIP code has developed one of the highest foreclosure rates in the nation.

By Timothy Pratt (contact)

Thursday, March 26, 2009 | 2 a.m.

Chris Morris

Real Estate in Crisis

Housing help for Nevadans in budget bill (3-25-2009)
Report: Las Vegas home values fall 28 percent in year (3-24-2009)
Reid: Obama housing plan not enough (3-23-2009)
Whether to walk away: Housing's moral minefield (3-22-2009)
Professionals pessimistic about speedy economic recovery (3-20-2009)
LV reclaims top foreclosure ranking in U.S. (3-20-2009)
Reid, Goodman tour foreclosed homes, present remedy (10-22-2008)

Foreclosure Tour

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Maria Kriegh’s two daughters signed up about 20 neighbors for Girl Scout cookies in late February, but when they returned to deliver the boxes two weeks later, the mother of four was shocked to find that a few of the homes were empty, bare living rooms glimpsed through window panes.

The Kriegh family lives on Wandering Street, in ZIP code 89131 — ground zero for the nation’s foreclosure crisis.

The area was in the spotlight five months ago, when Senate Majority Leader Harry Reid, Las Vegas Mayor Oscar Goodman and federal officials stood behind a podium on the lawn of an empty house across the way on Moradi Avenue and announced a federal program called the Neighborhood Stabilization Plan.

The program is designed to help fix neighborhoods knocked asunder by the wave of foreclosures. It sends $70 million to Nevada, $20.6 million of which goes to nine ZIP codes in Las Vegas, including the one where the politicians spoke. They described 89131 as “the hardest-hit area in Southern Nevada in terms of foreclosures;” as of February, the Las Vegas metropolitan area had the highest foreclosure rate in the nation.

Now that the federal government has signed off on Neighborhood Stabilization plans for Las Vegas, North Las Vegas, Clark County and Henderson, grants are expected to be handed out by mid-May. In the case of Las Vegas, the largest amount, $7.3 million, will go to buying foreclosed houses and selling them to people who earn less than 120 percent of the area median income — up to $77,000 for a family of four. An estimated 245 families could be helped by the money.

But will that be enough, and soon enough, to stabilize a neighborhood like the one where Reid and Goodman stood? For that matter, what is it like to live at ground zero?

Kriegh looks back in time to answer the question. Her family was the last one to move onto the newly laid-out street in December 1996. Back then, it was nearly a rural idyll, a place where “my children could go outside and chase lizards.” Kriegh’s friend and real estate agent Beverly Ann Lacey was her neighbor. Lacey remembers the neighborhood as a “nice mix of middle to upper-middle class” families living in 1,500- to 2,200-square-foot houses; a place “where everybody was hoping for the best.”

Fast forward to the past year or so and Kriegh says the worst part is not just losing everyone except for three or four neighbors, many forced out by foreclosure, lost paychecks, or both. She says it is more than the gap-tooth geography that comes with double-digit foreclosure rates. She runs down a list of things she never saw in her neighborhood until a year ago: gas siphoned from pickup trucks in the streets and driveways, graffiti splashed on walls, punches landed against her 10-year-old boy’s face, shopping carts tossed into the street, carpenter’s tools snatched from a longtime neighbor’s truck across the way, gunshots popped in the night.

Kriegh says this list has grown as new people have moved into the neighborhood, renting houses that banks have foreclosed on and sold to investors.

She no longer lets her children out after dark. She is trying to rent out her family’s house and hopes Lacey can find them somewhere to move, far away.

A few houses down Moradi Avenue, Neal Williams has a ready description of the effect foreclosures have had on his neighborhood.

“Just look at this,” he says, pointing to a gate he is still installing, meant to protect the house he has owned for 13 years. “This should let you know how I feel about how things are going.”

The father of three and owner of a custom concrete company points upward to burglar alarm sensors he has put in on the wall overlooking the street. He has also recently put locks on the gas caps of his company trucks parked in the driveway. Williams has his own list: three bicycles stolen from his back yard, rocks tossed at bedroom windows, a gangbanger at school trying to talk his teenage son into stealing his own father’s guns.

As a business owner who depends on residential construction, Williams has taken one hit after another in the past two years, dropping from 81 to 23 employees and withholding his own salary some months. “We’re on the verge of losing everything,” he says.

Add to that the stress of seeing his neighborhood change before his eyes, and it is hard to see an end in sight. “I just don’t understand why the people moving in here don’t take care of their homes, of their neighborhood,” he says.

Lacey, the real estate agent who was Kriegh’s neighbor from 1997 to 2005, explains, “What has happened is you’re bringing in temporary residents, rental properties, people who are staying six months, one year, and then they leave. They don’t take care of the property, there’s no upkeep ... This opens the door for crime, the quality of life changes.”

In the current situation, “neighbors don’t know who the neighbors are; there’s no stability.”

So, what can the Neighborhood Stabilization Plan do?

Tim Whitright, development manager for Neighborhood Services Department of Las Vegas, will oversee the plan. He has put out a request for proposals from nonprofit organizations to administer the $7.3 million that will help hundreds of families move into houses. Federal rules require him to work with nine ZIP codes, the top five in numbers of foreclosures as of Dec. 1, when the city submitted its plan to the federal government for approval; and the top four in numbers of houses headed for foreclosure. As of Dec. 1, 89131 ranked third in the first category, with 1,515 foreclosed houses, behind 89108 and 89110.

Nonprofit organizations have until April 9 to send in their proposals; the money must be spent in 18 months.

After hearing of the conditions on the streets where politicians walked in October, Whitright says the stabilization plan is meant to get people into neighborhoods, taking care of their properties and streets, supporting local businesses.

“Our intent is to help address some of the collateral effects of the foreclosure crisis,” he said.

At the same time, he notes that “neither the free market nor government programs can control who moves into a neighborhood.”

Tabitha Hardy moved to Moradi Avenue with her three children in December 2007 in part because her former husband grew up nearby and described the area as “like a small town, where everybody knows everybody.”

But Hardy, who is an emergency medical technician, soon found that she didn’t even have a next-door neighbor. The house next to her went into foreclosure soon after she moved in and has been a magnet for vandals ever since. She has also endured loud parties throughout the neighborhood, cars driving by at all hours. And when she asks children who come over to play with her children if they’ve told their parents, they tell her their parents aren’t home. A staggering drunk stepfather did make it to Hardy’s door one time, to pick up his son. Hardy is disappointed in her neighborhood. “People aren’t caring anymore,” she says, attempting to describe what she thinks has been lost.

Would it help to have families moving into houses like the one next door, through the federally funded program?

“Any homeowner is more likely to care about his neighborhood,” she says. “Is it enough? I don’t know.”

In any case, she probably won’t be around to see. About two months ago she heard four gunshots outside. She called the police. And after officers took her report, she started looking for somewhere else to live.

A foreclosure ground zero ZIP code, she says, is “not what I wanted my children to grow up in.”

Discussion: 14 comments so far…

By sanddunes

3/26/09 at 7:17 a.m.

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How appropriate to include a picture of sir Harry Reid. What exactly has Reid accomplished for Nevada? I know he has been a chaperon of bills around the house. Scrutiny, or even reading the bills is not required, signature only please.
By LasVegas2009

3/26/09 at 8:07 a.m.

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What has Reid accomplished for Nevada? Harry Reid put Nevada on the map! Without Reid this state would just be another Mississippi. Whens the last time Mississippi got any federal funds at all? Harry Reid is the best thing to ever happen to Nevada.
By AngryReader

3/26/09 at 9 a.m.

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What exactly is this pork barrel piece of crap joke supposed to do to stabilize neighborhoods?

You clowns know full well all this money will be eaten up in 'administrative costs' and fluff PR projects to try to convince the public you have not ripped them off!

This kind of window dressing does nothing to address the deeply 'underwater' conditions created in this valley by unscrupulous mortgage lenders and crooked wall street sellers of mortgage backed securities.

You might as well take all this money and drop it out of a helicoptor over the strip! This plan is going to did diddly squat to stem foreclosures, and the associated increase in crime etc.

Who exactly are the idiots coming up with this nonsense! You stop foreclosures by forcing the lenders to come to reasonable and fair terms to keep existing owners in their homes. Not by spray painting dead lawns or whatever this rather unclear double talking crap is about.
By wannabe1indc

3/26/09 at 9:01 a.m.

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Let me first say that I feel sorry for all of those families that live in the area! But I too lived not too far away from this area and I too saw this type of actions happening before I left Vegas. It is sad to see neighborhoods go down so quickly. Good luck Vegas! I do wish you luck, you have/had some great neighborhoods.

DC Dave
By homer

3/26/09 at 10:02 a.m.

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Harry Reid has done more good for Nevada than anyone in the last thirty years. The question is what has the dim wit,party boy,golf playing, George Bush clone Ensign done for anyone except himself? Ensign is known in Washington as the idiot who gets sent on errands just to get him out of the way.

Angry Reader You have some valid points but must you insult everyone just to make them? You must remember it is our tax money as well as it is yours that is promoting these ideas. It is for damn sure Bush and his administration was not going to stop unscurulous lenders. In 2002 he asked congress to come up with plans to make housing more affordable for people who wanted to buy homes but could not qualify under normal circumsatnces and in 2004 Greenspan asked Wall Street for plans to do the same thing. And the Democrats had their hands in this failed policy as well. Now we all will pay dearly.
By goingbust

3/26/09 at 10:09 a.m.

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When the gangbanger asked for the guns, the kid should have gone to the coppers. They could have set up a sting were the gangbanger took possession of the guns and then get 10 years for each one under the federal law.
By Mandy

3/26/09 at 10:58 a.m.

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We're familiar with this neighborhood and it's been crap for years, way before the foreclosures started to happen. Even then, most of the residents didn't seem to care; on Wandering itself, only about a dozen homes looked as if the residents cared, the rest was ghetto.
By getalife

3/26/09 at 11:07 a.m.

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While I feel for those HOMEOWNERS who are feeling the pinch, I have no sympathy for the landlords who are losing multiple homes.

Show the stats for that.
By LasVegas2009

3/26/09 at 12:56 p.m.

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March 26, 2009

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The Reid Report
Senator Harry Reid -- Putting Nevada First

Dear Fellow Nevadan:

The housing crisis has hit our state harder than any other in the nation. Even among homeowners who don't face foreclosure, many find themselves owing more than the house is worth. Beyond just affecting homeowners, this crisis is at the root of our larger economic challenges. The situation is very serious and Nevada's homeowners, workers and businesses are desperate for help.

That is why I have worked hard over the past several weeks to ensure that Nevadans can begin to see light at the end of this tunnel. On Monday, I wrote a letter to the Chairman of the Senate Budget Committee requesting that a reserve fund be created in the budget to provide assistance to struggling homeowners. I am proud to announce today that we succeeded in inserting this provision into the budget we consider next week. This fund gives struggling homeowners more leverage in their efforts to seek loan modifications with lenders and expands eligibility to those with substantial negative equity. The economy won't be able to rebound until we fix the housing crisis, and I believe this program will help us do just that. To see my speech on the housing problem, click on the picture below:

The other major factor in economic recovery is preserving and creating jobs. I am working in many ways, large and small, to promote jobs in Nevada. Congress enacted a major recovery package to help preserve and grow jobs, while making critical investments in America's future. I have been making calls over the past several weeks, along with Senator Ensign, to the heads of major banks encouraging them to give the MGM City Center Project a fair shake. MGM is Nevada's biggest employer and taxpayer and its City Center project, which will be the biggest LEED-certified project in the world, is the largest project in our state. This is an extraordinary situation. 10,000 Nevadans are currently working on City Center, which will, directly and indirectly, create 50,000 jobs in Nevada in the future. Our state has more than 10% unemployment and I am fighting for every job out there.

The Economic Recovery bill that we passed earlier this year will create 34,000 jobs in Nevada, but businesses have had a tough time figuring out how to access that money. I created a Guide for Nevadans so that our state gets its fair share.

Thanks for reading this update. I know Nevada's families and businesses are struggling, but I'm fighting for them every day. If you would like to read more about these plans, please visit my website or the links below.

HARRY REID
United States Senator for Nevada

Recommended Reading:

Reid: Stimulus Funds to Help Housing, Create Jobs in Nevada
Reid Stands up for Nevada's Struggling Homeowners
Reid Works to Help Nevadans Take Advantage of Economic Recovery Funds
Economic Recovery Plan
By yamma

3/26/09 at 1:33 p.m.

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I can only hope that the angry or upset readers who responded to your article are now moved to become more positively involved and educated in their own communities, counties, states, and country! Way to go...a factual article that spurs controversy, causes people to ask questions, to listen, and to "think" for themselves, rather than to simply "accept" by being followers. Good reporting.
By perry161492

3/26/09 at 8:59 p.m.

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we had housing crisis back in the beginng of 2007 what the hell took so damn long to take care this messed look in archive of review journal, these mortgage company knewed in 2007 we were having problem but went on there way continue with loan so they get a new benz if there any honest mortgage back they would have told the truth. what is so hard to tell the truth hope they alll burn in hell.
By perry161492

3/26/09 at 9:04 p.m.

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YOU EXPECTING THE GOVERNMENT TO YOUR NEIGHBOR GOOD LOOK THEY GOING TO HELP POLITICIAN NEIGHBORHOOD POLITICIAN DO NOT GIVE A CRAP ABOUT US. ALL THEY CARE ABOUT CASINO. U HAVE REID AND ENSIGN ASKING BANK TO HELP CITY CENTER THAT BULLCRAP
By chengold

3/27/09 at 12:46 a.m.

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Las Vegas is a very nice place to live. Fresh air, not too congested roads compare to other cities. Good whether, beautiful outdoors, Red Rock, Spring Mountain Ranch, Mont Charleston to only name a few. But for some reason our city government doesn't promote that part of our city. Only the Strip is been promoted over and over again. This cause people to believe the strip is Las Vegas. Don't get me wrong I love the strip although I am not a gambler. It is magical. But the reality is Las Vegas is a lot more than the "strip". Our suburbs are beautiful. We have world class mountain claiming and hiking area. We have the greatest outdoor activities. We have the best convention facilities a long with best shopping center and best entertainment. I mean non-adult entertainment. We should tell the whole nation and the whole world what we can offer. We need to erase the old not too positive images and create a new one. Our politicians should promote less of gaming business more of other businesses. Perhaps we need to create other business as well. Tech parks could be a good idea. Our education system ranked low compare with other states. We need to strengthen our education systems from grade 1 to University level.
Las Vegas has a potential to be a great city if our government promote the city using less of the "Sin" element. I hate people calling our city the Sin city. Let's promote Las Vegas in a more positive way and tell people what we can offer. I am sure visitors will come back. Business will pick up again and more people will move to Las Vegas again. A long with other businesses I am sure we will over come this terrible economic down turn very soon.
By relaytheword

4/7/09 at 5:38 a.m.

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Sadly, Mr. Reid is part of the problem that was created, along with Barney Frank, Christopher Dodd, Maxine Waters, Nancy Pelosi, Bill Clinton, George Bush, and everyone who pushed for families to buy homes who could not afford them. They forced lenders to "get creative" and when the downpayments became too little to be significant, many first time homewners abandoned their mortgages, and ultimately their homes. Mr. Reid is part of the problem. It is hard to look at someone you voted for and admit that you helped make the problem with your vote, but we all did. We have a chance to correct it and vote ALL of them out in the next election cycles. We must flush the toilet in Congress, and drain the swamp in the senate. Remediation is not possible unless we start at the base of the political corruption. Let's CHANGE our country ourselves!!!