Port St Lucie in a recent study has been one of the most active in using the federal monies they have received from the Neighborhood Stabilization Program. The program is to be used to redevelop, purchase and renovate foreclosed properties in areas that may incur blight from excess foreclosed and abandoned homes.
Port St Lucie received $13.5 million in funds. They have hopes of buying and renovating 130 homes with the monies. With over 15,000 homes being foreclosed since January you would think they might have plenty to from which to choose. However they have found that investors have been outbidding them. Thus far they have purchased 34 homes. Eleven of these homes were considered unrepairable and have been demolished, the remaining 23 are to be renovated then resold. The city must commit all funding by next September though it is supected that the program may be continued if it proves to be succesful.
With this program the city can not recoup more that the total costs to purchase and renovate. Also 25 % of the monies must be used to sell the homes back to low income home buyers. Strict income levels must be meet. Any remaining monies can then be used to sell homes to buyers earning less than 120% of the median household income for the area.
Application has also been made to another program, the American Recovery and Reinvestment Act. If it gets the funding the city would have more monies to use to help with down payment assistance. More information will be available for this program if funding is received.
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