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Purchasing Foreclosed Homes to Help San Joaquin Valley

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By : John Cutts    99 or more times read
Purchasing foreclosed homes in San Joaquin Valley and rehabilitating them for lower-income families is the main goal of the consortium called California Partnership for the San Joaquin Valley in asking for $193 million from the second funding round of the federal Neighborhood Stabilization Program.

The consortium, created by 9 local government agencies, submitted its proposal to the U.S. Department of Housing and Urban Development. It said it is committed to rehabilitate about 2,300 problem housing units across the valley by buying and fixing foreclosed houses, demolishing blighted properties and rehabilitating vacant buildings.

In a document sent to the media this week, the consortium said that house prices in Central Valley areas have fallen by more than 50 percent since 2006 and that the rates of foreclosures in the biggest cities in the valley are among the highest in the country.

In Merced County, house prices have fallen by almost 75 percent, making the average house in the area worth much less in 2009 than it was 9 years ago.

As described in the proposal submitted to the HUD, the consortium also planned to help the federal government's push for more energy efficient homes by purchasing foreclosed homes from large banks at special prices and then convert them into energy efficient houses. These would then be sold at discounted prices to qualified low-income households.

Additionally, the consortium would work with HUD-certified nonprofits and counseling organizations to prevent further foreclosures and assist lower income families buy foreclosed houses.

It would also create a regional initiative that would encourage builders to launch affordable housing projects to enhance transportation projects and create jobs.

Assistance from the San Joaquin Valley Clean Energy Organization is also included in the proposal. The consortium would share best practices and collective resources to help other areas increase the number and scope of energy efficient projects.

To make the project flowing smoothly and to make sure that funds are spent properly and correctly, the consortium would submit regular reports to the HUD using the services of the Fresno office of HUD.

The consortium California Partnership for the San Joaquin Valley was created in June 2005 by Governor Arnold Schwarzenegger to enable Central Valley representatives and state agency secretaries to work together and think of ways to help the governor improve the economy and quality of life of valley residents. Purchasing foreclosed homes would be one of the most effective ways for the consortium to fulfill its goals.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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