Funds for rehabbing, demolishing and boarding up empty distressed properties, including those under foreclosed and bankruptcy sale listings have piled up in Minneapolis, Minnesota. Money that came from the federal government's stimulus programs plus funds from an inspection effort from a few years ago have padded the rehabilitation purse and provided extra money to the state.
As the number of foreclosed homes in Minneapolis and in the rest of the state increases, the funds also grow. Now, the city is considering where the extra money should go. City officials have suggested using some of the money to pay for a computer system that will help track properties around the area. Some members of the city council have reportedly questioned the plan.
According to reports, the money was originally meant to serve as nuisance abatement funds or resources for rehabbing foreclosed homes in Minnesota. Council members have reportedly asked whether the tracking project is a high priority concern or whether it would be wiser to channel the surplus to the general fund of the city, which is in need of cash injection.
The city of Minneapolis has initiated various efforts to keep vacant properties in relatively good condition, including those under foreclosed and bankruptcy sale listings that have yet to be sold. Owners of the unoccupied properties are asked to keep their buildings and homes in order and are charged with fees or additional tax costs if they failed to do so. For abandoned premises, the city either tears them down or rehabilitates them.
With a lot of foreclosed homes for sale that ended up unsold and abandoned, local officials have been busy with its anti-nuisance program. The revolving fund meant to finance this effort was first established in 2006. The federal government provided $1.7 million for the local initiative and the fund expanded further after property owners who failed a housing inspection were asked to pay non-compliance fees.
Regulatory officials have asked for some of the funds to be channeled to the property tracking initiative which keeps tabs of records of real estate all around the region, including bankruptcy sale listings and non-foreclosed properties. The estimated amount needed to upgrade the computer system is $12 million.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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