Paul L. Caron
Dean




Thursday, December 17, 2020

Property Tax Foreclosure And Predatory Cities

Bernadette Atuahene (Chicago-Kent), Predatory Cities, 108 Cal. L. Rev. 107 (2020):

Between 2011 and 2015, the Wayne County Treasurer completed the property tax foreclosure process for one in four properties in Detroit, Michigan. No other American city has experienced this elevated rate of property tax foreclosures since the Great Depression. Studies reveal that the City of Detroit systematically and illegally inflated the assessed value of most of its residential properties, which led to inflated property tax bills unaffordable to many homeowners. Extraordinary tax foreclosure rates and extensive dispossession resulted. Consequently, Detroit has become a “predatory city”—a new and important sociolegal concept that this Article develops.

This Article is the first attempt to understand the intersecting economic, social, and political factors that have caused these struggling cities to become predatory.

Through an ethnographic study of illegal property tax assessments in Detroit, I find that predatory systems, rather than a few predatory people, initiated and perpetuated the illicit practices. More specifically, several factors made the City and its residents extremely vulnerable, and thus susceptible, to predation. Against this backdrop of vulnerability, certain legal and governance failures created structural opportunities for predation to advance at scale. Using the Detroit case, this Article identifies, defines, and examines the phenomenon of predatory cities, which scholars and policy makers must begin to better understand and address.

https://taxprof.typepad.com/taxprof_blog/2020/12/property-tax-foreclosure-and-predatory-cities.html

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