Port St. Lucie Waiting for Federal Funds

October 29th, 2008

The Port St. Lucie Community Services Department together with Don Cooper, the City Manager is going to meet to decide upon as to how the $13.5 million fund of the Neighborhood Stabilization Program of the US Department of Housing and Urban Development will be used. The officials of the city are expecting to put an end to the problem of foreclosure by buying, selling, and fixing the abandoned homes. Cooper has put forward a proposal before the director of the Community Services Department Tricia Swift-Pollard that about $9 million-$10 million of the fund can be used to make a purchase of the vacant real estate properties.

Apart from that, $3.5 million can be made use of to rehabilitate those properties. The remaining cash can be used for meeting various administrative costs. Cooper has said that the banks should roll up properties and give them to the city for possession. This has to be done at a discounted price from the appraised value. The proposals that would provide the most properties will be bought by the city. An evaluation will be carried out by the building department. Those properties that will be found in a poor condition will be destructed. The remaining ones are going to be rehabbed.

Cooper aims at removing as many as properties possible from the real estate and return them back to the single-family owners. He does not look forward to make the city go into a land speculation or rental business. The fund is given for a period of 5 years for investment. This implies that the money generated from rehabilitation or sales will get back into the process. As soon as that phase gets over, the amount will return back to the US Department of Treasury. According to the instructions, the fund is not allowed to be used for any sort of rental or buying affair. This fund may have the capability to cover the maintenance costs. The city will be held responsible for the properties bought.

Port St. Lucie has been reported to have a rate of foreclosure that is the fifth highest in the Florida community. Over 11 percent of the properties went into foreclosure activity a year back and also during the first quarter of 2008. Port St. Lucie happens to be the sole Treasure Coast area that will be given funds under the 2008 federal Housing and Economic Recovery Act. Port St. Lucie has to submit its plan on the usage of the fund by December 1.