Local Government Seeks Funds for Fixing Repossessed Homes
A third wave of foreclosure is currently battering Frederick County in Maryland. And the local government, aiming to stabilize and strengthen the local housing market, plans to apply for federal funds to purchase, fix and sell repossessed homes.
The local government is seeking about $6.7 million in federal funds to help alleviate the effect of the foreclosure crisis in the county. It plans to award about $5.5 million to Habitat for Humanity of Frederick County and Interfaith Housing Alliance to allow them to purchase, fix and sell 35 abandoned and repossessed homes.
Frederick County’s Department of Housing and Community Development director Jennifer Short said that the county is currently experiencing a third wave of foreclosure. She pointed out that previous foreclosures were triggered by the collapse of the subprime market and housing speculations. This time, the foreclosure is a result of the poor economy and the rising unemployment rate, Short said.
She added that the county is expecting foreclosures to continue to surge for the next two years. Meanwhile, the Frederick County Commissioners agreed to apply for the federal funds. Seven counties and organizations in Maryland have already applied for the federal funds which are part of the Neighborhood Stabilization Program 2 under the American Reinvestment and Recovery Act of 2009.
As part of its plan, Frederick County plans to allocate $550,000 on its program that provides down payment assistance and another $330,263 for the administrative costs.
The grant that the county is set to receive is on top of the $1.5 million awarded early this year as part of the state’s Neighborhood Conservation Initiative program, The program was part of the Neighborhood Stabilization Program 1. However, the initiative to buy, fix and sell repossessed homes was focused on neighborhoods in Brunswick and Frederick that have the highest foreclosure rates.
The grant money is allocated based on foreclosure rates measured by the Department of Housing and Urban Development. Meanwhile Brunswick Mayor Carroll Jones said that the best way to address the growing number of foreclosure homes is to have the properties occupied so that they will become a part of the community.
The initiative will require homebuyers to undergo counseling to prevent further repossessed homes crisis.
Related Posts:
- Michigan Program to Buy Tax-Foreclosure, Foreclosed Homes HUD
- Foreclosed Properties for Sale to Enter Michigan Land Bank
- Program to Help Residents Buy Bank Foreclosures for Sale
- $34 Million HUD Grant to Alleviate Colorado Foreclosures
- NSP Funds Do Not Benefit Listings of Bank Owned Homes
