Oklahoma City neighborhoods badly affected by the foreclosure crisis will be given a makeover soon. The city's Neighborhood Housing Services received a grant award of over $5.2 million to buy foreclosed homes for sale.
Under the program, the foreclosure properties will be repaired and sold to families who have low or moderate income or to nonprofit organizations. The initiative is funded by the Neighborhood Stabilization Program (NSP) which was launched under the Housing and Economic Recovery Act of 2008.
The NSP is part of the Obama Administration's initiative to stabilize and strengthen neighborhoods that are severely devastated by foreclosures and abandonment. Additionally, the program provides grants to state and local governments.
The grant money will be used by the Neighborhood Housing Services to buy about 45 foreclosure houses within the city limits. The first foreclosed home to be tackled under the program features three bedroom and two bathrooms in a 2,000-square-foot property.
Neighborhood Housing Services Oklahoma City housing development director David Ash said that under the plan, the mechanical system of the house will be upgraded to meet the current codes and standards. This will ensure that the house will be structurally sound. Additionally, the aesthetic features of the house will be enhanced to make it attractive and family friendly.
The city plans to equip all renovated houses with energy efficient appliances. It will also update the design of the property's landscape. Depending on the area and shape of the foreclosure house, it would take at least 2 to 3 months for the renovation to be completed.
Meanwhile, Neighborhood Housing Services executive director Roland Chupik said that the program will benefit the city as it will help stabilize property values and neighborhoods. He added that the federal effort will help fix communities devastated by vacant and foreclosure properties as well as boost the number of affordable houses.
More than half of the total grant money will be used on buying and renovating foreclosure homes to be sold to families earning equal to or less than 50 percent of the median household income in Oklahoma City. This means $20,500 income for individuals and $29,250 for a four-member family.
For those who qualify, they will be provided with a maximum of $6,000 down payment assistance. The Neighborhood Housing Services is given until August 31 next year to use the funds. Proceeds from the sale will be returned and reused by the city.
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