Colorado gets $34 million to buy foreclosed homes
December 30, 2008
DENVER ” The Department of Housing and Urban Development has approved Gov. Bill Ritter’s request for a $34 million federal grant to help communities buy and redevelop foreclosed properties that might otherwise become sources of abandonment and blight.
According to the Colorado Division of Housing, there were 25,320 completed foreclosures during 2007, and the Division estimates there will be approximately 22,000 completed foreclosures during 2008. Adams, Denver, Weld, Arapahoe, and Pueblo Counties have experienced some of the highest foreclosure rates in Colorado in recent years.
The Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides a total of nearly $4 billion to states and local communities experiencing particularly high foreclosure problems and risk of property abandonment.
Ritter said it is a public safety and economic issue.
“Foreclosed and abandoned properties are often targets for vandalism and other types of criminal activity. Having these HUD funds available to help distressed communities is important to keeping these communities stable and safe for the long-term,” Ritter said.
As part of the program, housing counseling is required for families receiving homebuyer assistance. The agency also requires that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices.