Find Foreclosure Properties Articles

Public housing agencies in the nation’s largest cities such as Los Angeles, New York City, Baltimore and Chicago are concerned that they will not receive allocations from the $1 billion funding that Congress has been seeking to give to housing authorities to stimulate housing sector activities and to fight the devastating effects of foreclosed for sale properties on communities.

According to the trade association Council of Large Public Housing Authorities, many large public housing agencies will fail the threshold set by federal officials for receiving Recovery Act money, which was intended to stimulate public housing activities held back by the problem of foreclosed for sale properties.

However, all of the about 3,200 public housing agencies across the country will each receive money from the $3 billion allotted for capital improvements by housing agencies.

But the larger public housing agencies are complaining that the threshold may leave them out of another $1 billion funding that would be released in the following months.

Sunia Zaterman, head of the trade association, said the requirements for getting money to stimulate the housing sector battered by foreclosed for sale properties exceeded the requirements set by Congress. The trade group wrote a letter to HUD Secretary Shaun Donovan about the alleged arbitrary thresholds.

The Housing and Urban Development earlier announced that the first funding round would only allocate money to public housing agencies which have shown the ability to utilize grant money quickly in the past, such as the use of funding to fix foreclosed for sale properties. HUD classified these authorities as high performers.

In response to the complaints of the trade council, HUD spokesperson Melanie Roussell explained that the eligibility requirements ensure accountability. She explained that HUD is committed to ensure that the Recovery Act money is spent quickly and properly, so the first funding round must prioritize public housing agencies that have proven capabilities to spend funding quickly and appropriately.

Housing agencies are graded according to the actual condition of the properties, financial management and customer satisfaction. Top-performing agencies will be given public recognition, including relief from some government regulations.

John King, a top housing authority executive for Los Angeles, related that his agency is just two points below the cutting line for high performers. King explained that larger public housing agencies have been facing tougher situations than smaller agencies because they are forced to stretch declining budgets to maintain a large number of aging public housing. Besides, agency resources have also been used to solve the problem of foreclosed for sale properties.

Related Posts:

• Nearly $50 M in Bonds to Address Foreclosed Properties in CA Cities
• FTC Wants Tougher Repossession Houses Rescue Rules
• Foreclosed Homes for Sale in Nevada Offered to Families
• Schwarzenegger Tackles the Foreclosure Problem
• $1B Budget – Answer to Foreclosure Dilemma