Board of Supervisors Expands County's Foreclosure Assistance Program
Nov. 17, 2008
Fairfax County’s existing foreclosure assistance program expanded using
$2.8 million from U.S. Department of Housing and Urban Development’s
Neighborhood Stabilization Program
- Money will be used to help first-time homebuyers and nonprofits purchase foreclosed properties.
Today, the Fairfax County Board of Supervisors approved a plan to expand the county’s foreclosure assistance program using new federal aid.
The plan calls for allocating $1.5 million to first-time homeownership shared equity loans; $1 million to nonprofits to buy foreclosed properties to be used as low-income rental housing; and 10 percent to administrative costs.
The county expects to receive $2.8 million from the U.S. Department of Housing and Urban Development (HUD) through its Neighborhood Stabilization Program (NSP).
The county’s Department of Housing and Community Development (HCD) developed the plan for using the HUD funds, and is currently administering the county’s foreclosure assistance initiative. The federal aid will be incorporated into the county’s Silver Lining Initiative and called Silver Lining Plus.
Silver Lining Plus funds will be made available to first-time homebuyers as a shared equity loan, and the money can be used for the purchase of single-family homes with a maximum purchase price of $362,790 or townhouses with a maximum purchase price of $270,000.
The money also will be made available to nonprofits to buy housing to rent to low-income households. The rental units purchased must help households with incomes at or below 50 percent of the area median income. Besides single family homes and townhomes, nonprofits will be allowed to purchase foreclosed condominiums with a sale price of up to $180,000. The money will be offered to nonprofits through a rolling application process as long as funds are available. Nonprofits will be encouraged to serve households with disabilities.
In June 2008, the board authorized a three-pronged initiative to address foreclosures in the county. This initiative includes counseling to distressed homeowners; the Silver Lining Initiative; and neighborhood preservation efforts through the purchase of up to 10 abandoned and foreclosed properties by the Fairfax County Redevelopment and Housing Authority.
HCD must submit an application to HUD by Dec. 1 in order to receive the money. The funding is expected in February or March.
As of Sept. 30, there were 2,257 homes in foreclosure in Fairfax County.
For more information, contact the Fairfax County Department of Housing and Community Development at 703-246-5104, TTY 711.
Fairfax County Office of Public Affairs
12000 Government Center Parkway, Suite 551
Fairfax, VA 22035-0065
Contact: Merni Fitzgerald, Director of Public Affairs
703-324-3187, TTY 711, Fax 703-324-2010
Media Pager: 703-324-NEWS (6397)
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