San Bernardino County allocates $22.8 million to stem foreclosure tide
San Bernardino County is trying to stem housing market woes by tapping into a federal program that will free up money for home buyers who want to purchase foreclosed houses.
The program also will allow government agencies to buy blighted properties and rehabilitate them.
The Board of Supervisors approved a plan Tuesday that allocates nearly $23 million in federal money from the Neighborhood Stabilization Program.
The money, however, may not be available for several months. Before funds can be given to home buyers, the U.S. Housing and Urban Development Department must approve the county plan, a process likely to extend into January.
The county plans to assist 167 people with their down payments, said Paul Herrera of the county Economic Development Agency. Another program could help up to 260 people purchase foreclosed houses through mortgage assistance.
"People need to go out and find the homes first," Herrera said. "Once they have a target, a home they want to purchase, that's how the program is based."
Herrera said the county is working on a Web site that will detail how prospective home buyers could qualify for the money. In September, HUD pledged to spend $3.92 billion on the Neighborhood Stabilization Program to help areas hardest hit by foreclosures.
The agency earmarked $125 million for San Bernardino and Riverside counties. The money will be distributed to cities in the counties and to county governments for use in unincorporated areas.
Fontana will receive nearly $6 million; San Bernardino, $8.4million. San Bernardino County's share is $22.8 million.
The county plans to use some of its $22.8 million to buy six single-family homes and 26 multifamily homes, said Herrera.
About 42,000 houses are in various stages of foreclosure in the county, said Mitch Slagerman, director of the county Community Development and Housing Department.
The plan also states that 62percent of homeowners in the San Bernardino-Riverside-Ontario area owe more to lenders than their homes are worth.
There are a number of pockets in San Bernardino County where foreclosure rates are severe, according to the plan. Some of those pockets include west Highland, Colton, Barstow and Adelanto.
Information on the program is on the Community Development and Housing Department Web site: www.co.san-bernardino.ca.us/eda/cdh.
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