Foreclosures High; Columbus To Receive $23.2 Million As Aid
The US economy is on a downturn. Unemployment is at its peak. As people lose jobs, they falter on mortgage payments. Hence, banks are taking over the properties. Foreclosures have become common. The Federal Government has come up with a program to help troubled owners. As part of this program, the loans of homeowners are being modified, first on an experimental basis, and then permanently. The program has had a slow start. But slowly it is picking up pace. Some areas are also getting funds being referred to as federal stimulus package to help homeowners buy foreclosed properties.
In Columbus, officials learnt that they will receive $23.2 million to aid in stabilization programs. The city wanted $64.8 million but the mayor of the city Michael B. Coleman said that he knew the Federal government would not send the amount. Coleman said that unless money is asked for, the Federal government does not give. The city had initially got $22.8 million.
The funds are aimed at revitalizing neighborhoods, particularly those areas, which are replete with vacant, foreclosed properties. The money will be used to build homes and also rehabilitate old ones. Homes that have been lying vacant will also be demolished.
The state is also expected to get $175.2 million. About $25.4 million will be kept aside for areas like Fayette, Licking, Fairfield, Marion, Perry, Pike, Morrow, Scioto and Vinton counties. The Ohio Department of Department will decide how the money will be utilized. It may be noted here that across the nation, the US Department of Housing and Urban Development gave away funds of $2 billion.
The secretary of HUD, Shaun Donovan said that his department got requests for $15 billion. The money will help to turn foreclosed properties into housing for the poor. True, the housing market is recovering but the recovery is very slow. Coleman said that the foreclosure problem is bigger than what the city can grapple with. The city had also sent a second request for $10.3 million. This would be required to help Wagenbrenner Development construct 305 homes. Also 300 apartments will be built in the Weinland Park neighborhood. President Mark Wagenbrenner said that work on the road network will begin in 2010. Also 40 homes will be constructed.
Wagenbrenner said that the neighborhood should be stabilized at any cost. The money would help in revitalizing the site. That would also include construction of solar panel fields. Redeveloping vacant houses is also on the agenda.
In Columbus, officials learnt that they will receive $23.2 million to aid in stabilization programs. The city wanted $64.8 million but the mayor of the city Michael B. Coleman said that he knew the Federal government would not send the amount. Coleman said that unless money is asked for, the Federal government does not give. The city had initially got $22.8 million.
The funds are aimed at revitalizing neighborhoods, particularly those areas, which are replete with vacant, foreclosed properties. The money will be used to build homes and also rehabilitate old ones. Homes that have been lying vacant will also be demolished.
The state is also expected to get $175.2 million. About $25.4 million will be kept aside for areas like Fayette, Licking, Fairfield, Marion, Perry, Pike, Morrow, Scioto and Vinton counties. The Ohio Department of Department will decide how the money will be utilized. It may be noted here that across the nation, the US Department of Housing and Urban Development gave away funds of $2 billion.
The secretary of HUD, Shaun Donovan said that his department got requests for $15 billion. The money will help to turn foreclosed properties into housing for the poor. True, the housing market is recovering but the recovery is very slow. Coleman said that the foreclosure problem is bigger than what the city can grapple with. The city had also sent a second request for $10.3 million. This would be required to help Wagenbrenner Development construct 305 homes. Also 300 apartments will be built in the Weinland Park neighborhood. President Mark Wagenbrenner said that work on the road network will begin in 2010. Also 40 homes will be constructed.
Wagenbrenner said that the neighborhood should be stabilized at any cost. The money would help in revitalizing the site. That would also include construction of solar panel fields. Redeveloping vacant houses is also on the agenda.
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