Municipalities Dealing With Foreclosure Crisis


It is no secret that Nevada has been at or near the top in the foreclosforeclosure-thumbure rankings for quite some time. This is certainly a case where nobody wants to be claiming “we’re number one!” The crisis has actually caused four adjacent or overlapping local governments to band together to address the problem. While their interests are often competing, this is a case where they are joining forces to combat a common enemy – foreclosures.

As part of this year’s stimulus package, the Federal Government created the Neighborhood Stabilization Program. According to HUD: “The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment.” The idea is to provide stimulus money to municipalities so that they can buy foreclosed properties, renovate them, and then flip or rent as the situation warrants. There is also money available to demolish homes deemed to beyond redemption.

Alliance Formed

Getting neighboring jurisdictions to work together toward a common goal is often no small task. Even though they are located in the same general area, different municipalities will have different agendas and a different set of priorities. Putting them aside for the common good isn’t always easy but this time there was too much at stake.

In southern Nevada, Clark County, along with the cities of Henderson, Las Vegas, and North Las Vegas, have all teamed up in their efforts to get a share of the stimulus funds (article). The group is aiming to get about $367 million in funds which will ultimately allow them to acquire more than 5,000 homes. The program is slated to run for three years.

The Long Waitrecovery-logo

As with many things in government, this is a case of hurry up and wait. The hurry up part – there is a mad scramble to submit a completed application for funding by July 17th. The wait – the funding amounts won’t be announced until February of next year and the funds will not start coming in until some time after that. Meanwhile the foreclosure crisis continues.

Southern Nevada foreclosure inventory has dropped of late due to a recently expired moratorium on new filings. There are currently about 14,000 foreclosed properties in the Las Vegas valley. Even more troubling is that the county estimates that there are more than 50,000 vacant homes in the area. Who knows how bad it will be when the money starts coming in more than eight months from now.

While it may not be an ideal scenario, at least something is being done.

 The best way out of a difficulty is through it. – Will Rogers

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  1. Sounds to me like legislation designed to protect credit card holders from rising interest rates. The White House and Congress hyped this breakthrough law recently; unfortunately, the law isn’t set to go into effect until next year. By the time it does, the CC companies will have already raised all the rates they want to, and will have profited off of the intentional or unintentional idiocy of our lawmakers who failed to make it go into effect immediately.

    There are great ideas floating around, but it seems like we’re seriously failing in our execution of . . . all of them!

  2. I have been trying to address the vacant and abandoned home problem in my market area. My concept is to take daily video’s of vacant homes and post them on my website. Those who would be allowed to view the homes would be municipalities, police, fire,
    public works departments, insurance companies, utility companies,
    asset management companies, and lenders. The purpose is to monitor these homes while they are vacant. I have talked to a few city officials near my home and they appear interested but nothing further. How can I motivate them…
    .-= jacklewitz´s last blog ..Illinois Bank Losses Cost FDIC A Pretty Penny =-.

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