Sacramento Will Get $32 Million to “Flip” Foreclosures
SACRAMENTO, CA - The Central Valley has been impacted by the foreclosure crisis more than any other area in the country. Finally that recognition brings with it some reward.
Sacramento city and county officials announced Friday they will receive nearly $32 million in federal aid to buy and rehabilitate foreclosed homes in the hardest hit neighborhoods.
The money comes as part of the Housing Rescue bill passed by Congress last summer.
“It is our intention to take it and target it in areas where we think we can make a real difference,” said county supervisor Roger Dickinson.
Pending approval next week from the city council and county supervisors, the Sacramento Housing and Redevelopment Agency will administer the federally-sponsored Neighborhood Stabilization Program.
SHRA has already identified areas where it will buy bank-owned homes and subsidize developers to rehab them for new homeowners or renters. The areas include Galt, south Sacramento, Del Paso Heights and North Highlands.
In cases where developers are not interested, SHRA will take a more active role.
“The city and county are becoming flippers,” joked Mayor Heather Fargo.
SHRA expects to supervise the purchase and rehabiliation of more than 400 homes within 18 months. Money raised from the operation will be used to buy more homes over the next five years. Any excess money must then be returned to the federal government.
No city in California is receiving more money for foreclosure purchases other than Los Angeles. The money going to Sacramento is more than the amount being received by any one of 20 individual states.
Stockton will be getting $12.1 million for a similar program, and unincorporated San Joaquin County will get $9 million.
Modesto will get $8.1 million and the rest of Stanislaus County will get $9.7 million.