published: Friday, November 28, 2008

How should Lake spend millions in grant money for foreclosures?

BENJAMIN ROODE

Staff Writer

Lake County would help buy and refurbish about 22 foreclosed homes with federal grant money, according to Lake's application plan for the grant.

County commissioners Tuesday put plans for rental properties with supportive services, like halfway houses, lower on the county's priority list.

The county could win about $3.1 million from the Department of Housing and Urban Development to implement a Neighborhood Stabilization Program. The application is due Dec. 1, and commissioners and the public are in the process of reviewing the petition.

Lake would make the money available to local housing groups like Habitat for Humanity, Home in Partnership, New Beginnings and others to buy foreclosed properties, refurbish them, and then sell them to low-to-moderate income families. The money would buy homes in the $120,000 and under range.

Once refurbished, the homes' costs would depend on their original purchase price and the income levels of those seeking the homes, said Bill Gearing, Lake County Community Enhancement Coordinator.

Commissioners Tuesday told Gearing they wanted to focus more on single-family properties and not the rental properties, which could be administered by a group like Lifestream Behavioral Center.

"I thought the spirit (of the grant) was guiding homeowners back to home ownership," said commissioner Jennifer Hill.

County officials acknowledged the $3.1 million would not make much of a dent in the 4,000-plus foreclosed homes in the county this year alone. They also reminded Lake County residents that the money was not to rescue families facing foreclosure; it was to buy homes already through foreclosure.

"This is to keep neighborhoods from" emptying and becoming dilapidated, said commissioners Elaine Renick.

One resident spoke at Tuesday's meeting, wondering if residents would be given input on which foreclosed houses would be purchased. He said inserting a random, possibly incompatible family into a neighborhood could disrupt the area's sensibilities and cause problems.

Local attorney Leslie Campione said Lifestream places families in homes on a regular basis and neighbors sometimes don't even notice.

Lake residents still have time to comment on the plan before commissioners consider it for final approval and transmission to the federal level. Residents should go online to lakecountyfl.gov or e-mail Gearing at wgearing@lakecountyfl.gov with comments on the plan.