The Dynamics of Information Sharing – How sharing timely accurate information could prevent urban blight Manuel De Tuya December 2016

What is Information Sharing Agency A B N Ext. Partners Taxonomies Data Retrieval User Behaviors Information Sharing

What is Information Sharing Information sharing is a process designed to govern flows of data and information (Žabkar & Arslanagić-Kalajdžić, 2014) It is complex because of diverse agendas (political, organizational, legal and technical) (Gil-Garcia, Chun, & Janssen, 2009) Key technological challenges: interoperability among systems; data and governance standards; need for more efficient processes (Gil-Garcia et al., 2009; Yang et al., 2014) In order to succeed, governments need to create collaborative arrangements (Wenjing, 2011)

What is Urban Blight … the result of a series of economic and social circumstances that produced decaying conditions in neighborhoods … identified by the presence of decaying properties, vacant parcels of neglected land and other characteristics of slum-like settlements …

Audience – Who is interested on fighting urban blight? What is “The Problem”? Context – Fighting Urban Blight in a Medium Size City in New York State The city of study is located in the Capital District of New York State. City government made the decision to implement an information-sharing framework across city agencies and external partners. Audience – Who is interested on fighting urban blight? City Departments – Mayor’s Office; Buildings; Information Technology; Fire Department; Police Department; 911 Dispatch; Code Enforcement; Finance; Legal Counsel External Partners – Banks; Realtors; Community Groups; Neighborhood Associations; Media Outlets The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

What is “The Problem”? The first step: Identify a root cause or at least the trigger of the decaying of properties. Two main scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

What is “The Problem”? The process is filled with information exchanges between lenders and borrowers. However, information is not always shared with city authorities or agencies advising them of the potential abandonment of properties. The vast majority of properties where owners (borrowers) fall in default are abandoned within the first 40 days after the loan becomes delinquent. The Foreclosure Process in New York State The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

What is “The Problem”? Causal loop diagram for sharing foreclosure information The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

Sharing timely, complete information on foreclosures = A decrease in the obsolescence rate of worker housing Causal loop diagram for sharing foreclosure information The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. Worker Housing Sector of Forrester’s Urban Dynamics Model - (Forrester, 1969) The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

Housing Stocks and Flows Build, Decay, Demolish, Repeat? Causal loop diagram for sharing foreclosure information The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

Working Hypothesis Other Questions Sharing timely, complete information on foreclosures = A decrease in the obsolescence rate of worker housing Other Questions What happens with premium housing? It goes to a similar decaying cycle as worker housing. Would foreclosures affect premium housing as they affect worker housing? If government agencies have access to more accurate, timely information and go after delinquent homeowners, would that de-incentivize investment in worker rental units? Causal loop diagram for sharing foreclosure information The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process. The first step for city officials was to identify a process as the root cause or at least the trigger of the decaying of properties. Two main non-dynamic scenarios that lead to housing decay were identified: Non-foreclosure scenario – Property owners neglect their properties and eventually abandon them. Under this scenario, there is no clear identified motive that triggers the negative behavior of the owner other than lack of interest on the property. Foreclosure scenario – Property owners default on their mortgage obligations and a foreclosure process is initiated against them. Properties are abandoned and neglected at different stages of the process.

What is Next ? Literature Review – Urban planning, urban dynamics, information sharing, simulation as a policy tool Building a dynamic model for sharing foreclosure information across public agencies and external partners Report back next semester