We read about all of the MONEY that is going into so many “EFFORTS” to save our decaying Inland Empire….I’m sure we will all be watching closely; we here in the Inland Empire have not seen bottom yet.
This is hot of the wire:
Federal officials have given an official thumbs up to local officials’ plans to spend millions in an effort to save foreclosed homes from decay.
The U.S. Department of Housing and Urban Development announced Thursday that 19 California municipalities will get a share of funds made available under a plan called the Neighborhood Stabilization Program.
The program allows redevelopment officials to spend federal money, to purchase and repair foreclosed homes. The money, which totals to nearly $4 billion to be allocated from coast to coast, can also be used to help low- and moderate-income buyers purchase homes.
San Bernardino County municipalities included in HUD’s announcement are:
-Fontana – $5,953,309
-Hesperia – $4,590,719
-San Bernardino – $8,408,558
-San Bernardino County – $22,758,188
HUD required local redevelopment officials to submit spending plans before funds could be disbursed.
In San Bernardino, for example, the plan shows that there are more than 3,100 foreclosed homes citywide. The plan reports that the greatest need is in within the western and central areas.
Money could be used for down payment assistance, rehabilitation of rental homes, purchase and resale of properties and demolition of blighted properties.
Carey Jenkins, director of housing and community development for the San Bernardino Economic Development Agency said officials could start making purchases in April.
“We’re all hoping that we can get additional funds,” Jenkins said. “It’s a minimal amount when you have the number of foreclosures that we do.”
Hmmm….house prices are projected to decline substancially here in the Inland Empire for the next two years. This plan sounds like a buy and flip program. Problem is, buy it, fix it, put it back on the market after several months and the initail investment will never be recooped? Is this the best way for funds to be spent? My thoughts are that people living in homes that want to keep them and save them from foreclosure should be the focus of a great deal of this funding.
You have to wonder with the credit crunch, even with down payment assistance….unemployment on the rise…how many people are going to qualify to purchase? My guess: A great deal of these homes purchased will sit, and sit, and sit along with the plethora of other empty homes for sale at much better prices. I see property management as the next venture for these programs, they will make great rentals!
