Tuesday, November 18, 2008

Input sought on $40 million rehab project

by Sadie Jo Smokey - Nov. 14, 2008 12:00 AM
The Arizona Republic

Phoenix residents on the brink of losing their home won't be rescued with the nearly $40 million Uncle Sam gave the city to deal with the foreclosure crisis.

The federal government awarded Phoenix the money in September based on the high number of foreclosed homes, subprime mortgages and mortgage delinquencies in the city. But the grant is meant to spur neighborhood stability, not bail out homeowners.

The city plans to use the money over five years to buy vacant single-family homes to rehab and sell, with incentives, as an owner-occupied home. A quarter of the money is dedicated to buying and rehabbing multifamily homes for low-income rentals.

"This isn't a prevention program," Deputy City Manager Ed Zuercher said.

"It's an after-the-fact program. We hope at least 800 families see benefit from the program."

Citizens have a chance to have a say over how the city plans to spend the money. The Neighborhood Stabilization Program's deadline for comments is Nov. 26.

 

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