Experts Disappointed with Local Homeowner Tax Assistance
Posted by caperdew on October 2, 2008
Did area get shortchanged by HUD?
Leaders, real estate experts not happy with share of foreclosure pie help
Manteca Bulletin
But when it came to the Housing and Urban Development divvying up $3.92 billion this past week of the federal taxpayer funded Neighborhood Stabilization Program, a number of people ranging from both U.S, Senators Dianne Feinstein and Barbara Boxer down to Manteca Mayor Willie Weatherford and real estate professionals such as Tom Wilson believe the region got the short end of the stick.
Weatherford said it reflected Congress’ pervasive ABC – “Anyplace But California” -attitude when it comes to distributing tax assistance.
“It doesn’t say much about our Congressional influence,” added Wilson.
Boxer and Feinstein issued a joint statement that noted, “Frankly, it is beyond us how California – which has nearly twice the amount of foreclosure filings than Florida (561,223 compared to 287,210) – could receive less assistance. This makes no sense, and is totally unacceptable.”
California overall is receiving $529 million, less than the $541 million that Florida is receiving. The money is being made available to allow jurisdictions to buy foreclosed homes and turn it into affordable housing stock.
Northern San Joaquin County – which spent much of the year on top of the list of hardest hit areas by foreclosures in the nation – received the following amounts:
• Stockton, $12,146,038.
• San Joaquin County, $9,030,385.
• Modesto, $8,109.274.
• Stanislaus County, $9,744,482.
Cities such as Manteca and Tracy were either unable to apply or chose not to apply due to the complexity and short time frame. Merced, though, did, and got nothing.
Stockton still rates high on the national foreclosure list with one in every 15 homes in distress.
Manteca, a month ago, had 1,200 homes in various forms of distress whether it was an actual foreclosure or a homeowner in danger of defaulting on their loans. Home sales, though, have been picking off foreclosures at a rate somewhat faster than new foreclosures have come on the market.
That is where the rub comes in according to information released by the HUD in the methodology they used to determine what cities and states got assistance with foreclosures.
The Housing and Economic Recovery Act of 2008 calls for allocating funds to states and local governments with the greatest need as determined by the number and percentage of homes:
• in foreclosure in each jurisdiction.
• financed by subprime mortgages in each jurisdiction.
• in default or delinquency in each jurisdiction.
HUD used U.S. Postal Service data to determine areas where abandonment of homes were more likely, unemployment rates, relative home price declines, and other data to determine how likely it is that foreclosed homes will remain for extended periods of time unsold and uninhabited.
View Homes for Sale at CentralValleyHomes.com
CAROL PERDEW
Prudential California Realty
(209) 239-7979
wwwCentralValleyHomes.com
