Tampa begins buying foreclosed, abandoned homes

The single-story duplex at the far end of East Idell Street in Sulfur Springs had been abandoned by its owners after the bank began foreclosing on the mortgage.

In July, Tampa officials bought the home from Bay Holdings Inc. for $28,800, roughly $110,000 less than the previous owner paid for it three years ago, and sent in the bulldozers.

The demolition marked the beginning of Tampa's new program to buy foreclosed and abandoned homes in neighborhoods hardest hit by the nationwide mortgage crisis.

Eventually, a single-family home will be built on the property.

Money to buy the properties is coming from Tampa's $13.6 million share of funds from the U.S. Department of Housing and Urban Development's $3.92 billion Neighborhood Stabilization Program, an emergency response to escalating foreclosures nationwide.

Mayor Pam Iorio's plan calls for buying about 80 foreclosed homes to fix up to be sold or torn down. An additional 30 foreclosed properties will be bought and rehabilitated as rental properties. Both of these steps are requirements of the federal program.

Sulfur Springs, North Tampa and West Tampa have been identified as target areas, based on the high rates of subprime mortgages, mortgage defaults and delinquencies.

The city plans to work with local nonprofit groups and charities to find eligible buyers. The money will not be available to homeowners currently facing foreclosure.

Sharon West, Tampa's housing and community development manager, said the city is currently negotiating with lending institutions to buy about 28 foreclosed homes.

The program mirrors efforts under way in other blighted neighborhoods.

In May, the city council approved the use of $1.1 million in redevelopment trust funds on a new program to buy foreclosed and abandoned homes in East Tampa. Similar to the federally funded program, the plan calls for fixing up the homes and reselling them.

Florida expects to receive $541 million through the neighborhood stabilization program. Hillsborough, Pinellas and Pasco counties will get a combined $70 million in funding.