Business and economic information you need to know
Nov 9, 2008 12:26 am US/Eastern
Federal Money Will Help With Florida Foreclosures
MIRAMAR, Fla. (CBS4) ―
Florida is on the front lines of the foreclosure crisis, and that's putting the state in the federal spotlight. The Sunshine state will receive more federal money to fight foreclosures than any other state in the country.
Uncut grass, trash and broken fences are all signs of the foreclosure mess festering in South Florida. The neglected properties decrease home values and drive the economy down. But there is help on the way. More than $140 million is coming to South Florida counties and cities to repair the homes and put new owners inside.
The money is coming from the Neighborhood Stabilization Program, run by Housing and Urban Development. Cities across the country are working right now to finalize plans to spend the money. In many cases, cities will identify foreclosed homes, repair them and give grants to first-home buyers who qualify.
Marty Larsen works with several South Florida cities to help redevelop them. "This is to get rid of vacant foreclosed properties, restore neighborhoods. From that standpoint – long term – it's gonna have a great benefit to the local municipalities," he explained to CBS4 Reporter Carey Codd.
In some foreclosed homes, we've seen appliances ripped out, trash left behind, pools half-emptied with tepid, disgusting water and homes with structural problems. Larsen says the federal money will also be used to hire construction workers to fix those problems and make the homes more environmentally-friendly.
The money won't solve the foreclosure crisis, but Larsen believes it will help. "We don't want to have vacant properties for any length of time sitting in neighborhoods," Larsen said. "It's not good, it's counterproductive to market values; it's counterproductive to everything we want to do in having good, safe quality neighborhoods."
David Rosa lives in Miramar. He says there are two houses near him that are abandoned. "If we could get that sold and taken care of and make it look better and the neighborhood looks better, then the values go up."
The federal money should begin making its way into our communities by mid-January. To learn more about how to apply, and find out where the money will go in South Florida,
click here.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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