Brockton seeks $21 million more in federal money to clean up housing foreclosure 'mess'
Federal stimulus funds would help deal with 2,000 vacant houses
By Elaine Allegrini
ENTERPRISE STAFF WRITER
Posted Jul 08, 2009 @ 01:38 AM
Last update Jul 08, 2009 @ 02:09 AM
BROCKTON The city received $2.1 million in federal neighborhood stabilization money and another $1 million from the state, but that only began the job of cleaning up the housing foreclosure mess, said Mayor James E. Harrington.
So now, he is seeking a whopping $21 million from the second round of the $5 billion federal neighborhood-stabilization stimulus package that is available.
"We want to keep as many of these foreclosed properties moving as possible," said Harrington.
The mayor on Tuesday estimated that the city still has some 2,000 vacant houses, some dating back to the original wave of foreclosures caused by predatory lending.
"Foreclosures have slowed down," he said. "What were seeing now is from unemployment, almost like a second phase."
"Brockton has one of the highest foreclosure rates in the state, so the money will be put to good use," said Councilor-at-large Linda Balzotti, a mayoral candidate.
Balzotti signed on to the application Tuesday, delivering a letter of support to Building a Better Brockton Inc., the agency that oversees federal community-development grants and is overseeing the first round of neighborhood stabilization money.
The grant is expected to be awarded later this year.
Housing experts predict it will take years for Brockton to recover from the housing crisis that has plagued the area. Urban areas like Brockton have been hardest hit.
Harrington said 14 agencies are actually working with the city to see that blight is removed from neighborhoods.
Through the grant, mortgage education is provided to homeowners and vacant houses are rehabbed so they will be attractive to new owners and make the neighborhoods better places to live. In some cases, the vacant houses are demolished, leaving space for new development.
Money is just starting to come in from the original grant, according to Harrington, who said the plans had to be approved by the federal HUD agency.
The application process for the new round is so complex and there is so much paperwork involved that some communities may not apply for the money, according to Harrington.
Dennis Carman, president and CEO of the United Way of Greater Plymouth and chairman of the South Shore Regional Network to End Homelessness, applauded the city for its efforts to address the foreclosure and related housing issues.
"Brockton has sometimes been critical of the federal government for not providing enough resources," he said. "The city should take the opportunity to look at whats offered."
He said there are 100 to 200 families in need of good affordable housing.
"We should be doing anything we can to find housing," Carman added.
Elaine Allegrini can be reached at eallegrini@enterprisenews.com.