Peoria Fights Foreclosure Battle on Several Fronts
I live in Peoria, Arizona and this is an article that was in my community bulletin. What is important to see is that I have seen bids being taken for rehab homes in many communities in Arizona. You can find these opportunities at city government web sites on the bid pages.
Determined to stick a fork in the inflated number of Peoria homes in foreclosure, the city’s Neighborhood and Revitalization Section is taking a four-pronged approach to stabilizing hard-hit areas.
Those approaches fall into two categories – those intended to help prevent foreclosures and those designed to get bank-owned properties bank into the hands of residents.
Utility Assistance
The first of the prevention measures targets the smaller-but-vital monthly bills that can feel suffocating to someone trying to pay down a large mortgage debt. Under its Utility Assistance Program, Peoria will toss a financial life preserver to qualifying residents by providing on-time assistance of up to $300 to pay for water, gas or electric service.
Emergency Rehab
Costly home repairs can be a tipping point for homeowners on the brink of foreclosure. They can’t sell the property without doing the work, but should they pour more money into a property they might lose?
In extreme cases, Peoria’s Emergency Rehab Program will provide up to $20,000 for repairs essential to life, health or safety. The city places a five to 10 year lien on the property; if the homeowner sold the home within the lien perios, the money would be returned to the city to assist other qualified homeowners.
Homebuyer Assistance
The city’s Homebuyer Assistance Program offers $10,000 grants to qualifying low and middle income first-time homebuyers who purchase in Peoria. In an effort to reduce the number of homes in foreclosure, the city will tack on an extra $5,000 for those who buy foreclosed properties
This is a very popular program and 80% of last year’s participants foreclosed property, according to Carin Imig, the city’s Neighborhood and Revitalization administrator.
Stimulus Grants
Peoria has applied for $10 million in stimulus money from the federal Department of Housing and Urban Development to:
- Purchase, rehab and sell foreclosed homes.
- Purchase, rehab and lease (and eventually resell) foreclosed homes.
- Assist low and moderate income homebuyers (separate from the Homebuyer Assistance Program).
“Our rehab will be bringing them up to new energy-efficiency standard,” says Planning and Community Development Director Glen Van Nimwegen, who adds that the program administrators would make every effort to use materials and labor from Peoria.
Looking Forward
That last point links neighborhood stabilization to another city initiative: Attracting and Supporting Green Businesses. Officials in Peoria’s Economic Development Services Department are working to connect those companies with the officials responsible for the home repairs.
Finally, Peoria’s Code Compliance Division, which moved to the Police Department under a reorganization of city government, is hard at work making sure the remaining foreclosed homes do not become a detriment to the city.
