Las Vegas repo houses for sale finally got attention from Housing and Urban Development Secretary Shaun Donovan, based on a statement released this week by Senate Majority Leader Harry Reid of Nevada.
According to Reid, Donovan has written him a letter informing him that HUD is sending three foreclosure response experts immediately to the HUD unit in Las Vegas and will be sending five more to assist the city in the resolution of its foreclosure problem.
Nevada and Las Vegas officials and lawmakers, including Senator Reid, got upset recently when Las Vegas did not get anything out of the $1.93 billion distributed to foreclosure-hit counties and cities across the country in the second-round allocation of Neighborhood Stabilization Program funds.
While fellow foreclosure-ridden states, Florida and California, got $348.31 million and $318.05 million, respectively, Nevada got a miserable $20.99 million, which was specifically allocated to the housing authority of Reno.
Although Las Vegas topped the list of the most foreclosure battered metro areas in 2009, posting a 12-percent foreclosure rate and nearly 95,000 foreclosure filings, its application for financial help was rejected.
The cities with lesser foreclosure rates were the ones that received the highest amounts, such as Los Angeles, which got $100 million, and Chicago, which got $98 million. Phoenix also received $60 million to mitigate the impact of its large number of repo houses for sale.
According to David Cherry, spokesperson for Representative Shelley Berkley of Nevada, one of the reasons for the rejection of NSP funding applications from Southern Nevada was the failure of the city of Las Vegas and nearby local governments to use the around $60 million given by the HUD to Southern Nevada in its first round of NSP fund distribution.
HUD Secretary Donovan also noted that his department received a total of $15 billion in funding applications, but had only $1.93 billion to distribute.
Nevertheless, Donovan said the HUD is pursuing ways to extend help to Las Vegas and nearby communities. He said that two HUD employees will work in the Office of Community Planning and Development and another two employees will be assigned to the Office of Fair Housing and Economic Opportunity.
According to Representative Berkley, the main goal of the foreclosure experts is to help Las Vegas fully utilize the resources provided in the first NSP funding round by coordinating various prevention programs and mitigating the impact of repo houses for sale on communities.
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