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State Lands Top Dollar In Relief Plan

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By SHANNON BEHNKEN

The Tampa Tribune

Published: September 27, 2008

TAMPA - Florida will get more federal money than any other state to buy abandoned, foreclosed homes as part of the Bush administration's foreclosure relief plan developed this year.

The U.S. Housing and Urban Development department announced Friday that Florida is getting $541.4 million - part of a $3.92 billion payout to states and local municipalities with neighborhoods particularly hard-hit by foreclosures. The money will be used to acquire and redevelop foreclosed properties so they don't contribute to blight.

"To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way," HUD Secretary Steve Preston said. "Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact."

Locally, seven cities and counties are slated to receive a combined $86.3 million. Part of the reason Florida is receiving more money than other states, Preston said, is because of the large number of foreclosures and abandoned homes. The government deemed 37 Florida municipalities, including Tampa and St. Petersburg, at either a high or medium risk of abandoned homes.

Governments can use grants to buy homes at a discount to demolish or rehabilitate abandoned properties and offer down-payment help to low- to moderate-income homebuyers. Governments have until Dec. 1 to submit plans to HUD detailing how they would spend the money. The money should arrive early next year.

Reporter Shannon Behnken can be reached at (813) 259-7804 or

RANKED BY RISK

Local municipalities will receive money to invest in neighborhoods hard-hit by abandoned or foreclosed homes. The federal government doles out money according to the level of risk in cities and towns. Five local areas were rated at high risk.

HIGH

Tampa - $13.6 million

St. Petersburg - $9.5 million

Pasco - $19.5 million

Polk - $14.6 million

Lakeland - $2 million

MEDIUM

Hillsborough - $19.1 million

LOW

Pinellas - $8 million

Source: U.S. Housing and Urban Development

sbehnken@tampatrib.com.

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