When the nationwide recession of the early '90s caused businesses to leave and tenant incomes to fall, the city's lower-income neighborhoods went into a tailspin. Lawrence realized it had to do something, and the only thing was to tear down the housing. The squatters who invade the abandoned housing are typically drug addicts, drug dealers and prostitutes. Once they are present, problems spread throughout the neighborhood. Ferris and Galle describe abandoned housing as an infection, a spreading disease.
Vacant buildings attract criminals.
Criminals in the neighborhood reduce rents and housing values. Marginal tenants move in and can't pay their rent. Owners can't pay their mortgages, can't fix up their properties, and can't evict tenants. Asked for Rent Escrowing Two years ago, Ferris and a group of city councilors finally went to then Senator John O'Brien from their district and asked for a rent escrowing law to help their situation and stop unchecked rent withholding. That's exactly what's killing the small landlords here.