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Aurora Finalizes Plans for the $4.5 Million HUD Foreclosure Funds

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By : Leticia Carvalho    99 or more times read
Joseph Garcia has been going around his city of Aurora in Colorado as manager of the city’s Community Development Division, inspecting neighborhoods with lots of foreclosed houses. He has been evaluating abandoned and repo homes as he finds ways to help the city allocate the nearly $4.5 million in funds that the city is set to receive from the federal government under the Neighborhood Stabilization Program. Garcia’s division operates under the city’s Neighborhood Services Department.

The NSP initiative, authorized by the Housing and Economic Recovery Act signed by President George Bush in July 2008, aims to help local governments acquire and repair foreclosure properties, demolish and rehabilitate blighted neighborhoods and set up land banks for development projects.

During the first nine months of 2007, the counties of Arapahoe and Adams had over 4,400 foreclosures, as reported by the city of Aurora. According to Jeff Hancock, the city’s coordinator for vacant properties, the city’s northern part accounts for the largest portion of Aurora foreclosures. The section is likely to get priority assistance under the NSP funds.

Before Aurora can receive the $4.5 million NSP allocation, the city must first submit to HUD its plans on how to spend the money in terms of target neighborhoods, budget, time frame and income levels. The plans must also include results of public hearings or public comments gathered through the city’s web site.

Garcia’s plans include the acquisition, repair and resale of about 100 foreclosed homes in the $150,000 range within the five-year period of the program. The rehabilitated properties could be sold as moderately-priced housing for new homeowners or offered as affordable rental housing for low- or moderate-income renters.

Among the key factors required by the NSP in the selection of recipient communities are the foreclosure rates, the number of foreclosed properties, the number of houses financed by subprime mortgage loans, the number of houses in delinquency and the income level of the neighborhood.
Leticia Carvalho has been educated in the finer points of the foreclosure market over 5 years.

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