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Tampa's $13.6 Million Foreclosures Plan Gets Federal OK

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By CHRISTIAN M. WADE | The Tampa Tribune

Published: January 20, 2009

TAMPA - Tampa has gotten the federal OK to spend $13.6 million to buy foreclosed and abandoned properties.

The funding will come from the city's share of the $3.9 billion Neighborhood Stabilization Program, a response to escalating foreclosures nationwide. The stabilization program is overseen by the U.S. Department of Housing and Urban Development.

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

Tampa Mayor Pam Iorio's plan calls for buying about 80 foreclosed homes in those areas that will be fixed up or torn down and resold. Another 30 foreclosed properties will be bought with the money and rehabilitated as rental properties, both requirements of the federal grant.

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

Florida, which posted the third highest foreclosure rate in the nation in October, expects to receive $541 million through the program, according to state officials. The Bay area, including Hillsborough, Pinellas and Pasco counties, will get about a combined $70 million.

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

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