Gov. Tim Kaine on Monday announced a series of grants that will allow local governments and nonprofits to buy, revamp and sell dozens of foreclosed homes.
The funds include $1.5 million for Prince William County, which saw 1,043 new foreclosure filings in July, second only to Fairfax County, according to foreclosure tracking firm RealtyTrac. Virginia’s foreclosure rate has grown eightfold since 2006.
The program is similar to one evisioned in Fairfax under former Board of Supervisors Chairman Gerry Connolly, though the county has struggled to get the purchase plan off the ground.
The $9.4 million in grants will be used to buy about 85 homes in two dozen of Virginia’s hardest-hit neighborhoods at a discount, according to the governor. The dwellings will be refurbished and sold to low- and middle-income families.
The proceeds from the sales will be put back into the program in the hopes of allowing counties to buy more foreclosed houses.
“Communities, like families, have suffered during this recession, and these funds will help raise everyone’s standard of living and their hopes,” Kaine said.
More than 28,000 homes in Virginia are in some stage of foreclosure, according to the governor. More than 16,000 foreclosures have yet to be filled.
The grants fueled a broader debate over the best way to combat a sprawling foreclosure crisis with dwindling government funds. Some recession-battered governments, like Fairfax, are pulling away from direct purchases.
In Prince William, the grants are a departure from the county’s plan to fight foreclosures. The county is working with banks to help county employees get low-interest loans, in exchange for the county moving some of its investments to the institutions.
Prince William County Board of Supervisors Chairman Corey Stewart said the state funds were welcome but were not the best use of taxpayer dollars.
“There are better ways to leverage that funding than simply making an outright purchase of a foreclosed home,” Stewart said.
