San Diego Gets $5.1M to Buy Foreclosed Homes

Foreclosed homebuyers will get a nice slice of the federal fund pie.

The County Department of Housing and Community Development announced Thursday that it received more than $5.1 million in federal funds from the Neighborhood Stabilization Program. The program, intended to help local and state agencies help deal with the foreclosure meltdown, was created as part of the Housing and Economic Recovery Act passed by Congress last July.

Not everyone can call a piece of the stash his or hers, though. At least a quarter of the families assisted must be at no more than 50 percent of the area median income, which is just under $40,000 for a family of four. What’s left can be used to help families up to 120 percent of their area median income level, about $95,000 for a family of four.

If this is you, hurry up and spend your stack of cash. The funds must be obligated within 18 months of receiving them and can only be used for certain projects.

One of those would be a homebuyer program that provides up to $50,000 low-interest loan to a family to buy a foreclosed home. The other, a program for non-profit agencies and developers that want to buy and rehabilitate foreclosed homes to turn into affordable rental properties for families at no more than 50 percent of the area median income level.

Those who buy can receive up to an additional $12,500 for energy efficiency and conservation projects.

Visit the Housing and Community Development Web site for information about affordable housing.

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