Governor Bill Ritter has promised to use the $34 million federal grant he received under the Housing and Economic Recovery Act of 2008 to address the Colorado foreclosures problem by rehabilitating, reselling or redeveloping distressed properties in the state.
The grant, provided by the Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program, is also expected to stabilize the housing market by preventing the decline of housing prices.
According to Ritter, Colorado has been affected by the country’s foreclosure crisis but is in a much better position than other states as indicated by a 13 percent decline in the number of repossessed homes in 2008.
Meanwhile, HUD regional director John Carson said that Colorado’s application for the federal grant was among the first to be approved. So far, only 22 grant applications have been approved out of the 308 being processed.
Under the HUD program, state governments are entitled to buy foreclosed homes at bargain prices and rehabilitate, redevelop or resell them to prevent property values from declining.
The program will provide a total of $4 billion grants to state and local communities with high foreclosure rates.
Recipients of the federal grants can use their money to buy land and property, demolish or redevelop abandoned and vacant properties and provide down payment and final payment to homebuyers who are in the low and middle income level.
Meanwhile, Colorado, which received only $34 million from its original loan request of $216 million, plans to redevelop 40 foreclosed properties and rent them to low-income people, purchase 120 homes to rent or sell, demolish damaged structures, provide counseling to 120 homebuyers and help about 100 homebuyers buy and redevelop properties.
Counties and communities that will partake on the $34 million grant are Adams, Arapahoe, Denver County, Broomfield, Douglas, Jefferson, El Paso, Weld, Larimer, Pueblo counties and cities of Denver, Colorado Springs and Aurora.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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