Cities In California To Receive $13 Million To Fight Foreclosure

Posted on November 6th, 2008 by saman

Three cities in Victorville, who have some of the highest rates of foreclosure, will get thirteen million dollars in federal funding to combat the blight that the many empty foreclosed homes have left.

Three million dollars has been allocated to Apple Valley, Four million dollars is going to Hesperia and five million dollars will be given to Victorville. These funds will be dispersed through HUD

The funding for these cities is part of the four billion dollars that HUD is giving local governments across the U.S. to fight the foreclosure mess that is now gripping the country and to stabilize communities. The cities will be able to put the money toward buying discounted foreclosed homes, refurbish or demolish them, or to be put toward a down payment for potential home buyers of low or moderate income.

Like many states that received money for foreclosures, the cities now have to sit down and work out a plan on the best way to spend the money.

By December the cities have to send the proposal back to HUD. The distressed towns are hoping to work with nearby cities in order to develop a program that has similar eligibility and requirements. This is so the cities can be consistent and so that they can make the most of the money.

.Officials in Victorville were thrilled and surprised to find out the amount of money they would be getting. The cities were given a third of what entire states have been given. .

There are no definite spending plans for the money as of yet but the economic departments of these cities are currently analyzing where the funds will go and how they would work for the greatest good.

These three Victorville homes are considered high risk areas when it comes to abandoned homes. The foreclosed homes in these areas are often not sold.

Victorville and Hesperia have the highest foreclosure rates among the cities that are eligible for the funds. These two cities have an eleven percent foreclosure rate. Apple Valley has a ten percent foreclosure rate.

Another city, Adelanto was not eligible for the funds buy may get part of the twenty two million dollars allocated to San Bernardino County. They also could get a portion of the one hundred and forty five million dollars that have been given to the state.

Ten percent of home in Apple Valley are in foreclosure and three million dollars have been given to the city to stabilize the communities that have been hit hard for foreclosures. Eleven percent of homes in Hesperia are in foreclosure and that city was given four million dollars. Eleven percent of homes in Victorville are in foreclosure and that city was granted five million dollars. Nine percent of homes in San Bernardino County are in foreclosure and that county was given twenty two million dollars.

Across the state, about six percent of all homes are in foreclosure and four billion dollars has been dispersed amount local and county governments.