Buy Foreclosed Houses Program in Florida
Buy Foreclosed Houses Program in Florida
The county of Hillsborough in Florida received a federal grant amounting to $19.1 million to help it buy foreclosed houses. With the program, county officials are planning to transform neighborhoods devastated by the foreclosure crisis.
Foreclosed homes in several targeted areas would be purchased under the county’s Neighborhood Stabilization Program to create more affordable housing.
Last month, the county was able to buy its first foreclosure house for $22,000. Hillsborough Affordable Housing Department director Valmarie Turner is hopeful that the program could make an impact on neighborhoods.
Industry experts are also hoping that the program could make a big difference in eliminating foreclosure houses that have become blights in neighborhoods. These foreclosure properties benefit buyers but bring nothing but problems to other people. For one, they pull down prices and values of surrounding properties. Secondly, abandoned and vacant foreclosure houses have become haven to criminals.
The $4 billion Neighborhood Stabilization Program, approved by the U.S. Congress in 2008, provides funds to local governments to buy foreclosed houses, renovate and resell them to families with low income. The main goal of this federal program is to revitalize and stabilize neighborhoods hardest hit by the foreclosure crisis.
Hillsborough County is given 18 months to use the funds to buy foreclosure houses and fix them. Florida received about $541 million in federal funds, the biggest compared with other states because of its high foreclosure rate.
In the Bay Area, counties and cities received nearly $75 million in federal grants. Officials in the Bay Area said that their foreclosure buying program is focused on old neighborhoods that are showing some neglect.
In Hillsborough, officials plan to focus the program on six neighborhoods, including the Orient Park, Clair-Mel, Town ‘N Country, Gibsonto, Plant City and near the University of South Florida.
Turner explained that proceeds from the sale of renovated foreclosure properties will be returned to the program to buy more foreclosures.
Hillsborough County plans to work with partners to find eligible families to purchase and live in renovated foreclosure homes.
To be eligible, buyers should meet income requirements. If approved, they will receive an interest-free loan and closing cost assistance.
Industry experts said that since its inception, the buy foreclosed houses federal program has helped many neighborhoods across the country. In addition, it has also created jobs for out-of-work construction contractors and crews.