More federal dollars are headed for Arizona to help some communities deal with the ongoing problem of foreclosures.
The U.S. Department of Housing and Urban Development awarded nearly $45.4 million to the state, several cities and two counties which can be used to acquire, redevelop or demolish foreclosed properties.
Phoenix got the lion's share at more than $16 million.
But both Mesa and Maricopa County each got at least $4 million. Pinal County picked up more than $3.1 million. And Tucson is in line to receive slightly less than $2.1 million.
This is actually the third - and smallest - round of funding for foreclosure relief. Arizona picked up more than $255 million in two prior grants.
In a prepared statement, HUD Secretary Shaun Donovan said the purpose behind the funds is to help reverse the effects foreclosed homes have on surrounding neighborhoods.
"We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight," he said.
HUD spokesman Brian Sullivan said there's a reason some communities got more than others - and some got none at all.
He said the cash was divided up according to a formula. And that formula, Sullivan explained, is based on need.
"Congress directed us to look at extent of foreclosure activity," Sullivan said.
One element of that, he said, is both the number and percent of home foreclosures. HUD officials also looked at the number of "subprime" high-interest mortgages as well as how many homeowners are at least 90 days delinquent in their payments.
Even within that, Sullivan said, HUD looks to focus the grants down to the local level, targeting individual neighborhoods.
One key factor is the vacancy rate, the number of homes in a community that are unoccupied because the owners defaulted on their mortgages and moved out. The agency also looked at unemployment data and the change in home prices.
"This formula tries to at least measure the problem of homes that go into foreclosure and stay that way," Sullivan said. "These are homes that are at high risk of becoming abandoned and therefore prevent a potential blight on their community."
The award system, though, has a cutoff: Any community whose need would entitle it to less than $1 million got nothing.
"We thought that wouldn't have a meaningful impact in that community," he said. So any share each would have gotten winds up in the $5 million give to the state as a whole.
The amount each community got in each of the three stages varies widely because of different methods used to make awards.
For example, Tucson, which picked up nearly $2.1 million this time got $7.3 million the first time around and $13.4 million in the second round.
Pima County got about $4.5 million in the first two rounds but nothing this time.
And Mesa was given $9.7 million the first time, nothing in the second round but got $4 million this time.
Latest recipients of HUD stabilization funds:
Avondale — $1,224,903
Arizona (state) — $5,000,000
Chandler — $1,332,011
Glendale — $3,718,377
Maricopa County — $4,257,346
Mesa — $4,019,457
Mohave County — $1,990,744
Peoria — $1,198,780
Phoenix — $16,053,525
Pinal County — $3,168,315
Surprise – $1,329,844
Tucson — $2,083,771
Statewide total — $45,377,073
Source: U.S. Department of Housing and Urban Development
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wonderweenie posted at 1:49 pm on Thu, Sep 9, 2010.
More wasted money and more debt we cannot afford.
Poorman posted at 6:38 am on Sat, Sep 11, 2010.
What a shame more money wasted,it will sort of get lost overtime and no one will seem to know what happend to it. And its obvious the banks aren't in any hurry to help anyone either nothing to force them to.
berlinfire posted at 2:41 am on Sun, Sep 12, 2010.
$45 million is a lot! What exactly will be done with all of our tax money? The state, cities and counties are supposed to buy some of these foreclosed houses - and then do what with them? Are they getting into the real estate business now? Or they're supposed to spend the funds on redevelopment? What does that mean?
Doesn't the current administration understand that most people just want to see less spending?