Georgia Officials Busy Finalizing Requirements for Foreclosure Aid as Deadline Nears
December 11, 2008 is the deadline for state and local officials to avail of a U.S. Housing and Urban Development (HUD) aid to help stop the surge of Georgia foreclosures and restore communities and neighborhoods plagued by abandoned and vacant properties.
Nine local governments in Georgia are trying to beat the deadline, finalizing plans on how they will use the almost $77 million federal HUD aid to stop foreclosures.
According to state officials, guidelines were created for the $77 million federal grant to prevent local government officials from thinking that politics play a role in the awarding of the HUD aid.
The formula created by state officials was based on actual foreclosure data from each of the 159 counties in Georgia.
Housing problems have been identified in six counties in the metro Atlanta area, with over 1,000 homeowners facing the threat of losing their homes as of September 2008. Data compiled by the state also showed that Georgia foreclosures are affecting 22 counties, with an estimated 100 properties abandoned during the period.
The state has been allotted another HUD grant of $76 million. It plans to award the money to local communities, including over $38 million for 12 counties in metro Atlanta.
Counties hardest hit by the housing market problem, namely Dekalb, Gwinnett and Fulton, will each receive both secondary allotment and direct federal aid through the Department of Community Affairs of Georgia.
Federal and states officials admitted that the effect of the federal government’s Neighborhood Stabilization Program is expected to focus on the local level because the foreclosure problems were deemed worst in some communities.
A portion of the federal fund will be used to pay for administrative costs and finance an estimated $15 million loan program. Some of the funds will also be distributed to other counties, including Bibb, Catoosa, Carroll and Polk which are experiencing foreclosure problems.
Georgia Officials Busy Finalizing Requirements for Foreclosure Aid as Deadline Nears…
Both state and local officials in Georgia have only until December 11, 2008 to apply for a federal government aid to help stop the surge of foreclosures in the area….