Coral Springs’ Chance To Deal With Foreclosures

Posted in Foreclosure, November 13th, 2008 |

Coral Springs has been given a chance by the US Department of Housing and Urban development to deal with foreclosures by entering the housing business. The department has given Coral Springs $3,378,142 to deal with foreclosed homes. There are five ways of using the funds. These include purchase and rehabilitation of the foreclosed homes.

The idea has been applauded by Mayor Scott Brook. Brook feels that if foreclosed homes are purchased selectively, although maintenance will require money, ultimately the market will turn around. “I’m OK with the city being in the housing business,” he said. “I like the idea of selective purchase of abandoned homes. We will have to spend some money to maintain them, but the market will turn around. ”

However, Brook’s colleagues beg to differ. They feel that it is not for the city to enter into the housing and mortgage business. According to city Manager Mike Levinson, buyers will not be found for these foreclosed homes purchased by the City and it will mean extra expenses for the city. “We are not a housing authority; we are not in that business,” said Levinson. “We can acquire and renovate foreclosed homes, but where are the buyers going to come from? There isn’t a market out there. Levinsons’ views are shared by Vice Mayor Vince Boccard. Boccard estimates atleast another two years for the housing market to start turning. Commissioner Roy Gold also feels that it is beyond the scope of the city to enter into the mortgage business and act as landlords. Yet Roy Gold is reluctant to let $3.3 million pass by. He suggests examining all possibilities of getting the money without financially endangering Coral Springs.

The programme will be discussed by the commission at its forthcoming meeting in mid-November. Public input will be sought after all the details are given, according to Erdal Donmez, Assistant City Manager.

The money can also be used to purchase and develop foreclosed homes and properties, demolish structures and redevelop vacant or demolished properties. Another way of using the funds is to establish a land bank. This will be a public authority, which will hold, foreclosed property and manage it.

According to Donmez, despite foreclosures, the city is not acutely affected. The provision for demolition of structures is not applicable for Coral Springs, says Donmez. He says that the city already has rehabilitation and purchase assistance for foreclosure victims.

1st December is the deadline, which has been set for applying the programme.