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Hillsborough Wants To Buy, Rehab Foreclosed Homes

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By D'ANN LAWRENCE WHITE | The Tampa Tribune

Published: March 27, 2009

TAMPA - Hillsborough County officials, in an effort to keep neighborhoods from deteriorating during tough economic times, want to buy and rehabilitate foreclosed homes.

The endeavor is part of the county's Neighborhood Stabilization Program, created in line with the federal government's $3.92 billion Housing and Economic Recovery Act of 2008. The initiative was launched to arrest community blight caused by the high number of foreclosures occurring around the country.

Hillsborough is receiving $19.1 million for the program. It is focusing the money on three unincorporated areas: Palm River, Clair-Mel and 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 is selecting appraisers and title service companies with which to partner as the county selects houses to renovate or demolish.

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.

Glass said her department can't predict what specific neighborhoods will be singled out for attention. She said it will depend on the number of foreclosures in a specific area at the time the county is seeking to acquire homes.

The county expects to renovate or rebuild a total of nearly 90 homes in the three target areas.

"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."

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

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