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Hernando Today
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County To Get $5.6 Million To Fight Foreclosures
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Published: December 5, 2008
BROOKSVILLE - Hernando County is in line to receive $5.6 million of federal money that would be used to ease the local foreclosure crisis and stabilize the housing market.
The money is part of the $9.1 million the U.S. Housing and Urban Development allocated to the Florida Department of Community Affairs as part of the Housing and Economic Recovery Act of 2008.
The money is earmarked for Hernando County and 25 other counties because they meet the three HUD-established criteria.
HUD gave priority to areas with: The greatest need and the largest percentage of home foreclosures; the highest percentage of homes financed by a sub-prime mortgage rate loan; and areas identified as likely to face a large rise in the rate of home foreclosures.
With Hernando County ranked 10th of all Florida counties with the highest percentage of foreclosures, this area more than qualifies for the money.
The number of foreclosures in Hernando County is up 76 percent from January to November 2008 over the same period last year.
Health and Human Services Director Jean Rags said she is still awaiting HUD approval on the $5.6 million. The formal application process could take place as early as March 2009.
"That funding is also contingent on Hernando County coming up with an appropriate plan to meet DCA's guidelines and eligible activities," Rags said.
As of today, Rags said the money would break out this way: $4.3 million would be allocated for low to moderate and middle income housing programs and $1.3 million for "very low income rental programs."
Local governments could use the money to acquire land and property, demolish or rehabilitate abandoned properties, or offer down payment and closing cost assistance to low- to moderate-income homebuyers.
The idea is to put builders and subcontractors back to work and stimulate the local economy.
Rags said she plans to update county commissioners on the program money at their Dec. 16 business meeting.
Meanwhile, banks, credit unions and mortgage lenders responded favorably this week to Gov. Charlie Crist's call to stop filing new foreclosures on homesteaded properties for the next 45 days.
"Struggling families and homeowners should rest easier during this holiday season, knowing that these lenders have heard the pleas of homeowners," Crist said in a statement.
Rags said it is not known how many people this would affect or the number of participating lenders.
"Certainly that will help families making mortgage payments to get caught up so they are not a step away from foreclosure," Rags said.
The Hernando County Circuit Civil Court recorded 1,926 foreclosure filings in 2007:
January: 108
February: 121
March: 127
April: 131
May: 113
June: 155
July: 168
August: 174
September: 153
October: 208
November: 223
December: 245
As of Dec. 3, there have been 2,991 foreclosure cases filed in 2008.
January: 254
February: 276
March: 250
April: 262
May: 253
June: 276
July: 270
August: 259
September: 332
October: 324
November: 206
December (through Dec. 3) 29
Reporter Michael D. Bates can be reached at 352-544-5290 or mbates@hernandotoday.com.
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