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Tampa Bay Area To Get Money To Deal With Foreclosures

Tribune file photo by JIM REED

For Sale signs are a common sight in many Bay area neighborhoods.

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By CHRISTIAN M. WADE | The Tampa Tribune

Published: October 17, 2008

Updated: 10/17/2008 12:36 pm

TAMPA - City officials are focusing on West Tampa and Sulphur Springs as they work on a plan to combat the growing tide of abandoned homes stemming from the state's housing crisis.

During the next year, Tampa is expected to receive $13.6 million in federal funding from the U.S. Department of Housing and Urban Development's new Neighborhood Stabilization Program, a $3.92 billion emergency response to escalating foreclosures nationwide.

The city plans to use the money to demolish or rehabilitate abandoned and foreclosed properties, acquire land and offer assistance to low- to moderate-income homebuyers.

"The primary purpose of the fund is to purchase foreclosed and abandoned homes in the city, demolish them [if needed] and put them back into the housing market," said Cynthia Miller, director of the growth management and development services department.

Grants will be distributed to target areas based on the rates of subprime mortgages, mortgage defaults and delinquencies. Local governments have until Dec. 1 to submit plans to HUD detailing how they plan to spend the money, expected to arrive next year.

The money, however, will not be available to homeowners facing foreclosure.

Florida, which ranked second in the nation in the number of foreclosure filings in August, is expected to receive $541 million through the program, according to state officials.

There were 14,960 foreclosure filings in the Tampa Bay area during the second quarter of this year, figures indicate. That's up 159 percent from the same period a year ago, and there were 44,000 default notices, auction sale notices and repossessions that month.

Overall, the Tampa Bay area — including Hillsborough, Pinellas, and Pasco counties — is expected to receive more than $70 million in federal funding under the new program.

Reporter Christian Wade can be reached at (813) 259-7679.

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