The Culpeper town in Virginia has received about $1.2 million in federal funds to help it buy from foreclosures list. The funds will be used to buy foreclosed house in some new housing developments.
The money was awarded under the federal government’s Neighborhood Stabilization Program which was launched by the Obama Administration to help stave off the foreclosure crisis, allowing the housing market to recover and become stable.
Governor Tim Kaine announced the grant award which is part of the almost $9.4 million given to nine localities in the state. In July, the town of Culpeper applied for the $1.9 million fund. The program also aims to address problems associated with growing vacancy rates in neighborhoods severely affected by the foreclosure.
Under the town’s plan, it will use the federal funds to buy, repair and resell houses in the Lakeview, Highpoint and Meadows of Culpeper neighborhoods. According to industry analysts, these distressed neighborhoods were classified as having the biggest number of foreclosure homes in the town.
Foreclosure properties eligible for the program should have been abandoned or vacant for at least 3 months. Buyers who are interested to make a purchase are mandated to meet income requirements and to undergo and complete a home counseling program.
Other areas in Virginia that have received the federal funds under the Neighborhood Stabilization Program include the city of Chesapeake with $1.5 million, Catholic or Housing of Prince William County with $1.5 million and Chesterfield County with $500,000.
Additionally, Fauquier County also received $1.5 million, $400,000 for the city of Franklin, $1 million for Lynchburg Neighborhood Development Foundation, $600,000 for Pathways of Petersburg and $1.2 million for Virginia Beach Community Development Corporation.
According to industry experts, the federal grants will be used to buy about 85 foreclosure properties at discounted prices in 24 neighborhoods. Under the plan, the acquired foreclosure houses will be renovated and placed on the market for sale to low-income, moderate-income and middle-income homeowners.
So far, over 28,000 homeowners in Virginia are in some kind of foreclosure process while over 16,000 distressed properties remain empty around the state.
In July, the number of properties that received foreclosure filings increased by 23.5 percent compared with June figures and higher by 11.5 percent from same month the previous year.
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