Montgomery housing officials said Tuesday they are considering purchasing some of the county’s thousands of foreclosed homes, using them to increase the county’s dwindling stock of affordable housing and counter the harm done to local housing markets.
Richard Nelson, Montgomery’s director of Housing and Community Affairs, warned Country Council members Tuesday that the effects of foreclosure go far beyond one family losing its home and can be detrimental to residents of an entire neighborhood. He told The Examiner afterwards that the county was “looking into” purchasing some of the foreclosed homes as one of several options to combat the problem.
“A large number of foreclosures in a particular neighborhood can have a depressing effect on property values, plus vacant homes are also more likely to be vandalized,” Nelson said. “Maybe the intervention of the county could help stabilize a community. It also might possibly be a way to get properties for a little less.”
The idea is similar to a proposal last week by Fairfax County Board of Supervisors Chairman Gerry Connolly to explore using some of Fairfax’s affordable housing fund to purchase foreclosed homes and resell them as work force housing.
Montgomery County had 13.5 percent of all Maryland foreclosures in 2007, second only to Prince George’s County, which had 25 percent, according to state housing officials. Nelson said the county’s 3,349 homes that entered foreclosure in 2007 represented an 85 percent increase over the prior year.
Even so, county leaders learned Tuesday the situation is getting worse — 1,726 homes entered the foreclosure process in February alone — about half the number of all 2007 foreclosures.
Council Vice President Phil Andrews said he supported investigating how purchasing foreclosed properties could help the county, but only if leaders first determine a way to distinguish which homeowners can afford to stay in their properties.
“The first thing is to try to figure out which homes are savable,” Andrews said. “If some people can get a better interest rate that is more sustainable, and then stay in their homes, I think that is what is best for the community.”
Where are they happening?
The five Montgomery ZIP codes most affected by foreclosures in February 2008:
» 20874 (Germantown) –
241 foreclosures
» 20906 (Silver Spring) –
153 foreclosures
» 20879 (Gaithersburg) –
128 foreclosures
» 20886 (Montgomery Village) – 125 foreclosures
» 20877 (Gaithersburg) –
108 foreclosures
