ST. LOUIS - St. Louis Mayor Cara Spencer has issued a statement on the Slow Flip Lawsuit.
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“Yesterday, the City of St. Louis filed a lawsuit against Bustling Funding, LLC, a Missouri company allegedly engaging in the predatory “slow flip” business model.
The slow flip business model is harmful to St. Louisans, especially our most vulnerable, because it is designed to exploit low-income buyers with poor credit. The business model works by promising eventual home ownership to tenants if they will move into the property, pay rent, and make updates/repairs to the property. Unfortunately, many of the homes are unsafe or have repairs that are too costly for tenants to tackle, and the tenant is ultimately evicted for failing to keep up with rent or make the necessary repairs.
This process will not be tolerated in the City of St. Louis.
Our lawsuit is asking the court to require Bustling Funding, LLC, and any other organizations like it, to obtain occupancy permits for their properties before allowing people to move in. This will allow the City of St. Louis to ensure these homes provide a safe and healthy environment for all residents in St. Louis.
Thank you to Legal Services of Eastern Missouri and to our City Counselor’s Office for their incredible efforts to protect our residents.”
