Volume 37 No. 4
Page 5
The threat of foreclosure is currently a reality everywhere, especially in places with lower incomes, 2 nd mortgages or recession-bound areas. Yet, Altoona seems to defy this trend. Including August 10, 2010 information from Foreclosure.com it is a straightforward matter to compare how communities are affected by this crisis. Again, the analog city of Johnstown was used but included an “outlier” - State College, a borough one hour from Altoona but home to guaranteed wealth and prosperity thanks to the presence of Penn State. The results are worth reporting. Twenty-two out of 45 homes in Johnstown are facing forms of foreclosure in Cambria County, yet the city has only 14% of that county’s population. Altoona, on the other hand, has 35.7% of Blair County's population. Twenty-one of the 50 homes are in fiscal straits. The foreclosure issue does not seem to have disproportionately hit Altoona. In the neighboring borough of Centre County, State College has 76 of the county’s 74% foreclosure listing, while making up only 26% of the county population.
Altoona, PA
Household Income Relying on AFF data, Median Household income in Altoona rose from $28,248 to $35,156 (inflation adjusted), an increase of 24.45%, while Johnstown’s change was $23,549 from $20,595 (14.34%). In the measurement of families living below poverty level, both cities increased, but Altoona’s rate of increase was 16.2% compared to Johnstown’s 24.3%. Other Factors? Tax policy is at the heart of competitiveness amongst regions, counties, and cities. Economic development officials are well acquainted with “the race to the bottom.” Statewide incentives such as Keystone Opportunity Zones (KOZ), Tax Increment Financing (TIF), and Local Economic Revitalization Tax Assistance Act (LERTA) all of which expire, unlike an LVT which does not impose such limits. Johnstown does have several KOZ zones, and Altoona uses the KOZ program. What differs is that Altoona provides LVT. Altoona's LVT doesn't have a limited life span like a KOZ. KOZ properties under LVT will realize an increase yet minor in comparison to what would occur without LVT. Further Actions? Assessments in Blair County, PA are among the worst in the state; not being up-dated since 1958! CSE encourages Altoona officials to continue to push for annual assessments and consider actions that would allow their school district to enact LVT. Remember, small business once made up the backbone of Altoona’s avenues and boulevards, room must be made for them at the table of low taxes. Ongoing Research 1. Perform meaningful in-depth research on building permits from same-source towns.
“Who can offer the best tax breaks and abatements to get those badly need jobs?”
2. Compare such factors as changing density of population, more square footage of buildings, decline in blight or vacancy and government-held land. 3. Examine business permit issuance, and conversely business closures. 4. Study the number of code violations over the years. Have they increased or declined?
Joshua Vincent