Delaware State News
DOVER — Dover City Council voted Monday night to seek $6.7 million in federal money to help finance the purchase of more than 60 foreclosed homes, nearly all of which would be sold at below-market prices to low- and moderate-income households.
The funds would come from $3.9 billion allocated several months ago to protect areas hard-hit by foreclosures. All homes purchased would be ones that have been through foreclosure.
"This is to get already-foreclosed properties back in homeownership so their neighborhoods don’t deteriorate," Councilman Eugene B. Ruane said. "And it gives low- and moderate-income people an opportunity."
A family of four would be eligible to acquire a home through the program if it made as much as $70,450, though many homes would be offered only to households making far less than that.
Called the Neighborhood Stabilization Program, the nationwide effort includes nearly $20 million for Delaware. Governments throughout the state can compete for funding, which will be handled by Delaware State Housing Authority. Dover’s application may be strengthened by the fact it will be the only one from Kent County, said the city’s planning director, Ann Marie Townshend.
"If we don’t get the full $6.7 million, it should be fairly close," she said.
Dover’s application would benefit not just the city but as far as three miles beyond its borders. The affected out-of-town area includes Camden, where 27 foreclosures were reported this year through August. Within the Dover area — specifically in the 19901 and 19904 zip codes — 105 foreclosures were reported during that period.
Homes would be rehabilitated before being sold. Proceeds from the sales would finance the purchase of additional dwellings that would upgraded and sold at below-market prices. The cycle would continue through five years.
"The idea is that (the original federal funds) would be recycled and leveraged to a lot more than $6 million," Ms. Townshend said.
The city would administer its proposed program, but the buying, repairing and selling of homes would be done by Dover Housing Authority and Diamond State Community Land Trust.
In addition, a handful of homes would be purchased by two agencies as residences for their clients. The National Alliance on Mental Illness in Delaware would purchase three, three-bedroom homes to accommodate nine people who would pay rent. Dover Interfaith Mission for Housing would buy two homes for temporary housing for six homeless men.
The National Council on Agricultural Life and Labor would assist potential home buyers in qualifying for affordable mortgages.
