SB County Supervisors considering investing $2.5 million in foreclosure proposal
The Board of Supervisors is expected to vote Tuesday on Chairman Paul Biane's recent proposal intended to help stop home values in San Bernardino County from plummeting farther.
The plan involves the county contracting with the newly formed Inland Empire Recovery Corporation, which would buy foreclosed properties in bulk, rehab them and resell them.
Biane is asking the board for $2.5 million to get the program rolling.
Supervisors Josie Gonzales and Neil Derry have previously expressed concerns about the proposal.
Gonzales said in December that she had questions about "full transparency of procedure" regarding the corporation and fiscal controls to protect the investment of taxpayer money.
The board voted Dec. 16 to hold off on contracting with the corporation and allocating $2.5 million. The issue will return before the board this morning.
On Monday, Derry said some of his concerns remain.
A number of guidelines were supposed to be added to the contract, including a rule that the county would only purchase residential units and indemnifications for the county, he said.
"As far as I know what has been proposed is still the same contract," Derry said. "If the contract doesn't change, I won't support it as it stands. My real issue is I don't have enough information to make a decision. I have a lot of questions still."
Biane has said the corporation could receive both local and foreign investment.
"Everyone has shown interest, but they have said show me the program," Biane said.
More than 42,000 houses in San Bernardino County are bank-owned, scheduled for auction or have received notices of default, according to a county report.
The concern is that the number of foreclosures will lead to blighted neighborhoods and will continue the spiral of declining home values, officials have said.
Biane maintains that his proposal's goal is to resell existing homes, not redevelop them.
He said some homes that are beyond repair could be torn down, but the focus is on helping first-time homebuyers acquire property.
The plan involves the county contracting with the newly formed Inland Empire Recovery Corporation, which would buy foreclosed properties in bulk, rehab them and resell them.
Biane is asking the board for $2.5 million to get the program rolling.
Supervisors Josie Gonzales and Neil Derry have previously expressed concerns about the proposal.
Gonzales said in December that she had questions about "full transparency of procedure" regarding the corporation and fiscal controls to protect the investment of taxpayer money.
The board voted Dec. 16 to hold off on contracting with the corporation and allocating $2.5 million. The issue will return before the board this morning.
On Monday, Derry said some of his concerns remain.
A number of guidelines were supposed to be added to the contract, including a rule that the county would only purchase residential units and indemnifications for the county, he said.
"As far as I know what has been proposed is still the same contract," Derry said. "If the contract doesn't change, I won't support it as it stands. My real issue is I don't have enough information to make a decision. I have a lot of questions still."
Biane has said the corporation could receive both local and foreign investment.
"Everyone has shown interest, but they have said show me the program," Biane said.
More than 42,000 houses in San Bernardino County are bank-owned, scheduled for auction or have received notices of default, according to a county report.
The concern is that the number of foreclosures will lead to blighted neighborhoods and will continue the spiral of declining home values, officials have said.
Biane maintains that his proposal's goal is to resell existing homes, not redevelop them.
He said some homes that are beyond repair could be torn down, but the focus is on helping first-time homebuyers acquire property.
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