Federal Funds To Mop Up Foreclosures

Federal funds are on its way to mop up foreclosures. Southwest Ohio government had been assured last summer that it would be get over $25 million of federal help to help the regions that had been hardest hit by foreclosures. On 17th November 2008 it was announced which localities would be getting the most in Hamilton County and Cincinnati. In Hamilton County 15 communities would be getting the most from $7.97 million sanctioned for it, depending on the number of foreclosures in each. Colerain Township will benefit the most with $585,000. Here 844 houses had been foreclosed upon since 2004. There are 62,205 residents in the township. Except for Cincinnati this region has the highest proportion of foreclosures.

Springfield Township with a population of 39,755 will be getting $510,000 to address the problem of 610 foreclosed units.

Cincinnati has its own plans for using $8.3 million but details have not been released as yet. The areas in focus are East and West Price Hill, Northside, Westwood, Madisonville, Bond Hills, Avondale, College Hill, South Fairmount and Evanston. Other localities would also be considered for a share of the help funds after taking into consideration certain circumstances said Michael Cervay of community development. Included in the measures is the demolition of 143 houses and repairing for rehabilitation 70 other units. Hamilton County has opened discussions with its communities regarding how the money should be spent.

Twelve other jurisdictions in Ohio will receive funds. Butler County, Hamilton City and Middletown will be receiving $4.2 million, $2.3 million and $2.1 million respectively. Nearby municipalities in Kentucky and Indiana will not qualify for funds. In foreclosure rates in 2007 Ohio had ranked sixth. A record had been made in Hamilton County with 7,000 foreclosures in 2007.

The Housing and Economic Recovery Act had been passed by the Congress in July this year sanctioning $3.9 billion to communities. It was to be done through Neighborhood Stabilization Program. From that Ohio will be getting $117 million.

The money would be used to purchase, repair and resell abandoned foreclosed houses to qualifying buyers as affordable units. The money would be used as land banks for foreclosed houses. The Colerain Township administrator David Foglesong said, “We’re hoping we can abate some nuisances and make improvements to these houses and bring them up to standards. If the best thing to do is demolish them, then that’s the route we’ll take.”