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PUBLISHED: Wednesday, February 27, 2008
Federal government offers to sell HUD homes for $1



LAPEER—With foreclosures of homes in Lapeer County soaring to new heights, the federal government is offering a beacon of hope to deter the onset of blight in neighborhoods devastated by the housing crisis.

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The U.S. Department of Housing and Urban Development is offering local governments the chance to buy unsold repossessed HUD-owned homes for $1.

"They're vacant homes the Federal Housing Administration is unable to sell after six months," said Lapeer County Community Development Director Mike Partlo. "There is a 10-day window where local governments may purchase the single family homes for $1."

There are currently 40 HUD foreclosed homes in Lapeer County. That number is expected to rise in the job barren economy.

"Unfortunately, it's a very sad thing for a number of reasons," Partlo said. "People are losing their homes, and the economy continues on a downslide."

While the HUD $1 home program won't fix the problem, it can offer revitalization to a neighborhood. Local government may buy the homes and foster housing opportunity for low to moderate income families, or address community needs for a public purpose.

At the invitation of Lapeer County Commissioners, Partlo explained the HUD program at their Thursday Committee of the Whole meeting.

"It's sort of like making lemonade out of lemons," said Partlo, suggesting some of the properties may be rehabilitated as Habitat for Humanity homes. "These houses are not on the tax roles and are not being kept up. They become a blight."

There are opportunities to combine resources involving skilled low risk jail inmates, said Lapeer County Sheriff Ron Kalanquin, who was in the audience on another matter.

"We have inmates who could rehabilitate the homes at no cost," Kalanquin said. "Shrubs and plants could be added and weeding done. If Habitat could provide the paint, we could provide the labor."

County commissioners directed Partlo to spread information about the program to local non profit agencies, villages, cities and townships.

Michigan placed third highest in foreclosure rates in the nation, below Nevada and Florida. State numbers indicate 1.9% of all households in Michigan's poor economy received a foreclosure filing last year.

In Lapeer County 90 homes were foreclosed on in January, said Lapeer County Sheriff's Department deputy Linda Berdan. The Lapeer County Sheriff's Department is mandated to handle foreclose proceedings. County records show 96 foreclosures in October, 73 in November and 67 in December.

Susan Younger may be reached at (810) 664-0811, Ext. 8122 or susan.younger@lapeergroup.com.





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