Miami-Dade to Buy Up Bank-owned Homes to Help Stem Foreclosures
To stabilize local neighborhoods suffering from the effects of foreclosures, Miami-Dade County officials have drawn up a spending plan for the $62.2 million in grant money they got as part of a mammoth housing stimulus measure passed earlier this summer by Congress.
The money will primarily be used to buy, rehab and resell or rent bank-owned properties to low-income residents.
Miami-Dade, especially hard hit, received more money under the law than any other local jurisdiction, owing to a funding formula that looked at the concentration of subprime loans, percentage of homes in foreclosure, and the likelihood of future foreclosures.
Congress approved nearly $4 billion in additional neighborhood stabilization funding to offset the effects of foreclosures, which can depress property values of neighboring homes, attract crime and cause eyesores and safety hazards.
The state and other local governments received a total of $541 million. Broward County received $17.7 million, while Monroe County was excluded. A handful of large cities in both counties received their own money directly.
County and city administrators are required to follow certain guidelines when deciding how and where the money will be spent. Areas heavy with foreclosures and where more than half the residents earn less than 121 percent of the area's median income will be the county's top priority, said Robert Cruz, a county economist who analyzed foreclosure trends to determine the areas of greatest need. Broadly, the targeted areas extend throughout central Miami-Dade and southeastern parts of the county. The money cannot be used to prevent homeowners from losing their homes.
Miami-Dade's proposal would directly help about 1,500 residents in the form of counseling, down-payment assistance or the rental of refurbished apartments, said Clarence Brown, who heads the county's community and economic development office.
The county plans to set aside $10 million to buy bank-owned properties and will spend $1 million to tear down about 80 blighted structures. It has also proposed putting aside $26.6 million to buy apartment buildings, with the expectation of adding 215 new units to the market.
''We're figuring we can get the biggest bang for our buck if we utilize the money for rentals because we can house the most people that way faster,'' said Cynthia Curry, a senior advisor to County Manager George Burgess.
Source: Source: Miami Herald | Published on November 5, 2008
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