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Homing In On Areas In Need, Includes Palm River

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By D'ANN LAWRENCE WHITE

dlwhite@tampatrib.com

Published: March 25, 2009

PALM RIVER - Hoping to arrest community blight in Clair-Mel City, Progress Village and Palm River, Hillsborough County is looking to buy foreclosed homes in the area for rehabilitation.

The effort is part of the county's Neighborhood Stabilization Program created as part of the federal government's $3.92 billion Housing and Economic Recovery Act of 2008. The initiative aims to reduce the negative impact of the high number of foreclosures around the country that are distressing communities.

Hillsborough County is receiving $19.1 million for the program and focusing the funds on three unincorporated areas: Palm River/Progress Village; Orient Park, just west of Mango; and the University Area, near the University of South Florida.

The areas were selected because they have the highest foreclosure rates in the county, the highest number of houses at risk of foreclosure and the most homes financed with subprime loans, which are offered at higher interest rates because the borrowers have poor credit ratings.

Lanette Glass, foreclosure manager for the Hillsborough County Affordable Housing Department, said her office has solicited bids and is in the process of selecting appraisers and title service companies to partner with as the county selects houses to renovate or demolish and rebuild.

"We've already received eight bids for title and appraisal services," Glass said. "We're moving pretty quickly because we only have an 18-month window."

Under federal rules, the county has 18 months to spend the money after awarding the contracts, Glass explained.

In April and May, the county will solicit bids for environmental inspection services, rehabilitation contractors, demolition contractors, property managers and consultants to ensure compliance with the federal Davis Bacon Act, which enforces labor and wage standards on all federal construction contracts.

The county also is looking for nonprofit housing partners to help identify eligible homebuyers or renters. The goal is to provide affordable homes to low-income, first-time homebuyers by giving them fixed-rate mortgages. Each homeowner must participate in eight hours of housing counseling to ensure he or she is prepared for the financial responsibility.

A quarter of the homes must be rented or sold to families making 50 percent or less of the targeted area's median income. That works out to $17,000 to $23,000 for the average family in the Progress Village, Palm River and Clair-Mel areas.

The county plans to meet this goal by allowing families to use Section 8 federal housing vouchers to rent some of the homes.

Glass said her department can't predict what specific neighborhoods within Clair-Mel, Palm River or Progress Village will be singled out for attention. She said it will depend on the number of foreclosures in a particular area at the time the county is seeking to acquire homes.

In all, the county expects to renovate or rebuild nearly 90 homes in the three communities.

"The best way to make a difference in an area is to have an aggregate impact by renovating houses within a few blocks of one another," she said. "That way it has a domino effect. If you use a shotgun approach, you won't really see the results."

HOW TO TAKE PART

Hillsborough County has $19.1 million in federal funds for the Neighborhood Stabilization Program and is focusing the funds on three unincorporated areas: Palm River/Progress Village; Orient Park west of Mangol and the University Area near the University of South Florida.

The county's affordable housing department has created an online sign-up form for businesses that want to participate in the program at www.hillsboroughcounty.org. Click on the A-Z Index link and select "Neighborhood Stabilization Program."

Reporter D'Ann Lawrence White can be reached at (813) 657-4524.

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