Could This Be The Helping Hand?

This morning's Washington Post featured an article entitled Congress's Fixer Upper with a subtitle of A plan to stabilize neighborhoods could create more foreclosures. There seems to be proposed legislation afloat to once again assist with the aftermath of the mortgage meltdown.

Real Estate professionals know the perils of foreclosure better than most. The article references the impact on the community, both from an aesthetic vantage point, as well as valuation. One area typically overlooked by those outside of the industry, is the cost to local government. Every time a police officer is dispatched to the property to investigate a complaint of vagrants, there is a cost to local government. During the summer months, the code enforcement divisions of local government are engaged in the removal of debris and the maintenance of lawns in order to safeguard public health. The monies expended will be recouped upon the sale of the property. However, the problem is that there is a glut of foreclosures and the sales are not happening quickly. Therefore, local governments are without funds that have been budget for other essential services.  

The senate's 3.9 billion dollar bill proposal would provide funds necessary for the local governments to buy these distressed properties and make them available to private nonprofit groups. Obviously, all repairs and code enforcement issues would become the responsibility of the nonprofit. The properties would then be made available to low to moderate income families, buying their first home.

On the surface the concept sounds great. There is a remedy for the municipalities and their constituency and more Americans can realize the dream of homeownership. However, there is concern that this is a bailout for the lenders and in the eyes of some, it simply isn't worth it. Then there are the proponents for assistance to the hundreds of thousands who have been displaced....families forced out of their home.

What say you on the issue? What should the government be doing about this calamity or should they be doing anything at all??