Staff Report | News

Federal foreclosure money not coming to Isabella County

The state of Michigan will receive about $244 million from the federal government to help certain counties and areas in the state buy foreclosed properties.

Isabella County, however, is not getting any of the money.

Louis Berra, field office director for the U.S. Department of Housing and Urban Development in Grand Rapids, explained that the basis for distribution of the money was data in Washington D.C.

“The data that is submitted to Washington reflects the number of foreclosed properties in each area,” Berra said.

The funds will help municipalities either redevelop or demolish foreclosed properties, or help low-income families purchase them.

The allocation is part of the last $731 million in payment from the Department of Housing and Urban Development from a $4 billion appropriation in the 2008 stimulus bill.

Based on the way the money is divided and who it is distributed to, Isabella County did not have a high enough number of foreclosed properties to receive any of the funds.

Most of the money was distributed to major cities and their surrounding areas, Berra said, and to some counties that did not already receive support.

Detroit had about 6,201 foreclosed properties. Grand Rapids had about 1,969 properties. Flint had about 1,198 properties, and there are about 9,368 foreclosed properties for the state of Michigan overall, Berra said.

All of these properties have gone through foreclosure, and the Department of Housing and Urban Development is now trying to sell them.

Lana Vacha, field office director for the Department of Housing and Urban Development in Detroit, said the money given to Michigan was distributed to about 23 cities, counties and communities.

“The biggest project Detroit is going to use the money for is the demolition of houses in the worst condition, and to rehab houses in local target areas,” Vacha said.

Vacha also said that some communities will purchase and hold on to some properties until the market changes, particularly the communities around the Flint and Lansing areas.

metro@cm-life.com

E-mail the author: Vanessa Fayz

This post was written by:

Vanessa Fayz - who has written 17 posts on Central Michigan Life.




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