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Economic Factors - Arson, Housing, and Neighborhood Stabilization (From Government Executive's Guide to Arson Prevention and Control - A Handbook on Information Systems and Action Programs, 1981, P 21-45, by Clifford L Karchmer et al - See NCJ-86285)

NCJ Number
86287
Author(s)
J Greenfield
Date Published
1981
Length
22 pages
Annotation
The dynamics contributing to the deterioration of inner city housing are described, and the relationship of arson rates to deteriorated housing is examined, followed by descriptions of programs to combat this circumstance.
Abstract
Several studies suggest a relationship between fire incidence and various housing and economic variables. The studies focusing on arson incidence specifically lend support to the argument that such variables as abandoned buildings, disrepair of housing units, and vacancy rates are key indicators of economic problems burdening a neighborhood's housing stock, thereby increasing its possibility of falling victim to arson. Abandoned or deteriorated buildings are prime targets for vandals, and the profit motive for 'torching' such buildings is strong. Insurance proceeds can be fraudulently obtained; a worthless building can be demolished at no cost to make the land available for more profitable ventures; and an arson fire may be used by the owner to prevent further operating losses. One program designed to arrest the deterioration of urban core neighborhoods due to the unavailability of property insurance by private carriers is the FAIR (Fair Access to Insurance Requirements) plan, a federally sanctioned pool for high-risk insurance policyholders; however, this plan has been criticized for allegedly promoting arson-for-profit by making insurance available to professional arsonists. The rigorous enforcement of building and health codes has also been used, but some say this may pressure owners toward arson. Demolition programs have also been adopted by some cities. The most important involvement of the private sector in the residential arson problem lies in insurance practices and mortgage financing. These two areas are interrelated in that most mortgage loan arrangements require that the property serving as collateral be insured. Six references and 23 notes are provided.