Fontana City Council officials will meet and vote to decide on a program to acquire foreclosed homes, rehabilitate and sell them in an effort to revive the housing market.
At the meeting, city officials will consider whether to use the federal grant estimated at $5.9 million to fund the program which would target abandoned and deteriorated houses. The funds, made possible by the 2008 Housing and Economic and Recovery Act, were released to address the foreclosure crisis.
Under Fontana’s program that helps homebuyers, the opportunity to purchase the rehabilitated houses will be offered first to teachers and city employees.
According to deputy city manager David Edgar, Fontana must submit its application for the federal grant to the Department of Housing and Urban Development on or before December 1, 2008 to receive the funds by early 2009.
He said that the plan will be beneficial in rehabilitating foreclosed properties and helping revitalize the neighborhood.
Councilwoman Janice Rutherford believes that the program is one way to address the problem of foreclosed properties that are in the state of deterioration.
Rick Edwards of Meisen REO and Pool Services said that the city plans to buy about 15 to 25 homes in several Southern California neighborhoods, including Southridge, Montelago, Sierra Lakes and Citrus Heights.
Fontana is expected to spend up to $50,000 on repair for each property. Edwards explained that prospective homebuyers would be consulted during the rehabilitation to give them an opportunity to contribute on how improvements can be made on their homes.
A median income of below or equal to 120 percent is required for homebuyers to be eligible to buy rehabilitated properties under the program. For example, a family with four members should be earning $74,000 annually to become eligible for the program.
Money from sales of rehabilitated homes would be invested back into the program to allow Fontana to continue rehabilitating other foreclosed properties.
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