Friday, December 04, 2009

Utah & St George Real Estate Neighborhood Stabilization Program Reform Act

St George Utah Foreclosures - Neighborhood Stabilization

I'd like to detail how it is that an alternate view from our last blog post, where the rate or concern of St George Utah foreclosures is put forth through the Utah Neighborhood Stabilization Program of which counties are suffering the most in Utah. The allocated budget for Utah is $177,989,900 to be allocated.

The following is taken from http://www.opencongress.org/:
5/21/2009--Introduced. Neighborhood Stabilization Program Reform Act of 2009 - Amends the Housing and Economic Recovery Act of 2008, as amended by the American Recovery and Reinvestment Act of 2009, to revise requirements for the use by state and local governments of emergency assistance provided to them for the redevelopment of abandoned and foreclosed homes and residential properties.
The allocated budget for Utah is $177,989,900. The following is taken from The Utah Housing and Community Development Website at http://housing.utah.gov/documents/NSPFinalActionPlan.pdf in which they cite Utah's need and Washington Counties need:
The low number of potential buyers who can afford or qualify for home mortgages, and the high number of households losing their homes, has created pressure on the overall rental market…The decrease in affordable rental housing puts Utah’s low-income households at risk…Although the foreclosure crisis is felt statewide, the crisis is more pronounced in five of the most populous counties: Salt Lake, Weber, Washington, Davis and Utah…Emphasis will be on stabilizing neighborhoods that have been most affected by the foreclosure crisis. The majority of funding will focus on land banks/trusts and on redevelopment. A portion of NSP funds will be used to revitalize foreclosed properties and make them available to families including homeless families. It is the State of Utah’s goal to provide safe, affordable housing and improve the quality of life for low-to moderate income persons and families.
Thus, it is apparent that Utah state or the Utah Division of Housing and Community Development (HCD) has ranked Washington County Utah as one of the populas areas needing help. I do not know much on how these funds will be allocated,but it is apparent they intend to target the areas of most need or in low income housing segments. This is although many of the foreclosures have been in the higher price ranges, they still hope to affect the lower income earners segment that are being forced out of housing and with low availability of rentals, now doubling the homeless shelters numbers. HCD administers eleven community-targeted
programs and the four HUD programs.

The housing plan does say that funds will be allocated by most need and while we don't know which areas are hardest hit, they do say most emphasis will be on Salt Lake county with the most population being affected.

St George Real Estate

Here in the St George Real Estate area market, Apple Valley to be exact, I know of one rural HUD home that mysteriously was taken off the market, where in the listing agent told me, that when these homes become about half of what the appraised value was, they take them off the market to give the community or city the opportunity to buy the home first for any of their low income assistance programs. This particular home went back on at a reduced price and was immediately sold to the highest bidder. Investors had to wait 5 days before bidding on that property, as it was exclusively available to primary home owners- buyers who intended to occupy it.

Another instance here in the St George area, in Washington, Utah actually, I recently helped a younger couple put under contract a new construction build job. However, at first, the land owners and developers were challenged surpassed loan limits of the bank that also had ownership, that initially constrained that land owner/developer from getting new construction funding. During the buyer refusing to get the construction loan a change came about with the bank that reportedly loan limits of the bank that had a stake in the property, that the limits had been extended now allowing them to fund the project. This may be part of the government getting involved to help spur on development, but maybe it was just part of economics playing out.

This real estate update is part of our way of wanting to keep you informed on the market. Feel free to go to our website for more statistics for the local St George Ut Real Estate market. Fee; free to contact me, Brian, your local St George realtor anytime to help handle your real estate needs.

1 comment:

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