Program Success September 2010 | Page 5

PROGRAM SUCCESS – SEPTEMBER 2010 PAGE 5 Feds Give Central Florida $48 Million to Battle Foreclosure Blight Money is part of $208 million flowing into Florida - the most of any state 16 are undergoing renovations, including the three- bedroom, 2 1/2-bathroom home where the news conference took place. There is already a waiting list of HUD-approved buyers for the house, part of a tidy upper-middle-income neighborhood. “The impact of this program goes beyond just rehabilitating those properties,” Orlando Mayor Buddy Dyer told reporters, noting the ripple effect of new jobs. Democratic U.S. Rep. Alan Grayson of Orlando also applauded the stabilization program, saying it would further reduce the “blight” of foreclosures. Although the rate of mortgage defaults in Orange County already is slowing, Grayson said, the region “still can use all the help that we can get.” Orlando Mayor Buddy Dyer speaks at a press conference along with Congresswoman Corrine Brown announcing millions of dollars in new funds to help the troubled housing market and slow foreclosures in the Orlando Metropolitan area. By Kate Santich Orlando Sentinel Central Florida is getting nearly $48 million in federal funds to bolster foreclosure- plagued neighborhoods and help would-be homeowners, officials announced Thursday. The money is part of $1 billion in “neighborhood stabilization program” funds from the Obama administration that will help local housing authorities across the country buy and renovate abandoned properties. The money also can be used to offer assistance with down payments and closing costs to low- and moderate-income homebuyers. Florida, which has one of the highest foreclosure rates in the country, will receive about $208 million — the largest amount of any state. The second-largest allocation, $149 million, went to California. Conducting a news conference at a once-abandoned two-story home in southeast Orlando, top officials of the U.S. Department of Housing and Urban Development joined local politicians in trumpeting the allocation, which they said will go a long way to ease the impact of the state’s housing crisis. “To us, it’s an easy investment,” said HUD Deputy Secretary Ron Sims. “It means someone will wake up and have a job to go to. … A community will have a new neighbor. And a new family will live here.” The latest grants are the third, and possibly final, round of HUD neighborhood- stabilization funding. Among the Central Florida grants are $11.5 million for Orange County, nearly $4 million for Seminole and more than $3 million each for Lake, Osceola and Brevard counties and the city of Orlando. Last year, Orlando received $6.7 million from the first round of HUD grants — money it has used to buy 44 foreclosed homes and create 200 jobs for construction workers, contractors and landscape architects. So far, 25 of the homes have been renovated and The program also seeks to prevent future foreclosures by requiring financial counseling for families receiving homebuyer assistance. They must also get their mortgages from lenders who agree to comply with the federally approved “sound lending practices.” The money comes from the Dodd-Frank Wall Street Reform and Consumer Protection Act passed this summer. It follows two earlier rounds of neighborhood-stabilization efforts: the Housing and Economic Recovery Act of 2008, which provided $3.92 billion nationally, and the American Recovery and Reinvestment Act of 2009, which appropriated an additional $2 billion. HUD did not provide specifics on when the money would reach local housing authorities, but it will take several weeks just to issue guidelines on exactly how the money can be spent. Although initial neighborhood-stabilization funds often were slow to be put to use, officials said recipients now have a better grasp on what to do. As of this month, all previous money for Florida has been designated for specific projects. One novel feature of the stabilization program is that rental property is being offered first to nonprofit organizations that want to use it for their clients — often people with some kind of disability. In Orlando, for instance, the charity Attain, which helps people with developmental disabilities, has provided permanent housing to 15 people in four homes obtained through the program.