Columbus Granted $22.8 Million by HUD

The US Department of Housing and Urban Development is going to give away over $22.8 million fund to Columbus to help her deal with the foreclosure crisis. The department is going to send across funds to about 22 cities of Ohio apart from the counties that have been heavily affected by foreclosures. The fund has also been granted keeping in mind the distressing condition of those suffering from subprime loan crisis and mortgage delinquency in the real estate. This fund is a part of the $3.92 billion program that has been approved for various counties, cities, and states across the nation by the Congress. President Bush has given his approval to it.

Foreclosure has had a serious effect on the economy of Columbus. The price of homes has dropped down. People have lost their jobs. The price of energy and food has gone up. The homeowners are finding it difficult to make their mortgage repayments. The city of Columbus enjoys the 30th position nationally in its number of foreclosure filings from January to June, 2008. This city happens to be Ohio’s largest recipient of local government money from Neighborhood Stabilization Program. According to US Senator Sherrod Brown, D-Ohio, Cuyahoga County and Cleveland are respectively going to get a fund of $11.2 million and $16.1 million. Other than these, Franklin County is supposed to receive a grant of $5.4 million from HUD.

Columbus will be able to use this fund for the redevelopment of properties facing foreclosure. The buyers can use the money to meet their closing costs or make down payments. This will hold true for those with low and moderate income. However, the housing administrator of Columbus, Rita Parise has said that it won’t come to any help to those facing a foreclosure on their property now. This money can be used to demolish the properties that are vacant, or can also be used to purchase and renovate properties.

Parise has further said, “It’s like Home Again on steroids,” She has said this referring to the program that aims at spending $25 million over the nest six years. The money of HUD will be coming to Columbus for the coming 4 years, beginning in the year of 2009. The problem of foreclosure is needed to be tackled immediately to save the city from further decline. The real estate of Columbus is also suffering seriously. Steps have to be taken to create a mass awareness as soon as possible.

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