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HJN local mobileHUD backs plan to save homes in foreclosure
County to use part of grant to buy houses from banks, help homeowners refinance.
Sunday, November 30, 2008
HAMILTON — Butler County has submitted a plan to the U.S. Department of Housing and Urban Development to use a $4.2 million federal grant to combat neighborhood blight and foreclosure.
Central to the county's plan is an untested initiative to keep people in their homes by buying foreclosed homes from banks and helping homeowners refinance them.
County commissioners campaigned for this to be part of the plan and HUD agreed, though it's not what the grant was intended for, said county Development and Planning Director Michael Juengling.
The county has budgeted $1.2 million for this purpose. This will be enough to help 10 families initially, said Development Director Donna Everson.
"Once they get financing to get them back in the home, it immediately revolves back," Everson said. "If we can get this rolling, who knows how many we can help?"
To qualify, a household must have an income between 50 percent and 120 percent of the area median income, which is $66,200, and must be able to obtain financing.
The county also will spend $2.1 million buying abandoned or foreclosed properties, fixing them up and selling them to low- and middle-income families. Seven homes will be resold to families making less than 50 percent of the AMI, and eight will go to households up to 120 percent AMI.
The county will use $500,000 from the federal grant to buy and demolish 50 abandoned buildings deemed beyond repair. The county will then sell or donate the parcels to eligible families.
The federal grant also includes $10,000 to provide housing counseling to eligible homeowners and $403,742 for the county to administer the program.
The county is focusing on parts of Trenton, Fairfield and New Miami, and the townships of Hanover, Lemon, Madison and St. Clair. These areas were identified as having the most need, Everson said.
The county is in talks with mayors and trustees from these communities to identify specific properties for purchase. Residents wanting input in the process should contact their local government, county officials said.
Hamilton and Middletown have their own federal grants, together totaling $4.5 million, and also have outlined plans to demolish or improve blighted properties.
