A novel approach to relieving foreclosure disaster floated in Florida
This article was originally on a blog post platform and may be missing photos, graphics or links. See About archive blog posts.
Here’s an unusual idea for reinvigorating a foreclosure-ridden community: declare it a disaster area. At least that’s the proposal of Doug Coward, a Florida county commissioner.
From ‘Florida county, hit hard by foreclosures, may declare itself a disaster area to free up aid’ at latimes.com from the Associated Press:
The declaration would allow the county to suspend the usual bidding process for shovel-ready projects so that local contractors would get the jobs. It would also enable government officials to use some of the money in a $17.5-million county fund usually reserved for natural disasters. The projects could, in turn, put some residents back to work, helping them pay their mortgages and stave off foreclosure. Other politicians fear a disaster declaration could scare off investors and drive down the county’s credit rating, which would make it more expensive to borrow money. But the idea has appeal among many homeowners, particularly those in the construction trades, which are seeing unemployment rates of up to 40 percent. Jacqueline Byers, research director for the National Association of Counties, said she knows of no other U.S. county that is contemplating such a move. ‘Everybody is kind of foundering around. Counties are looking for ways to address their shortfalls. This might be an innovative way to do it,’ she said.... The county had more than 10,000 foreclosures last year, up from 4,165 the year before. Unemployment stands at 10.5 percent, more than double three years ago.
The proposal goes to a vote of the commission in several weeks. It’s an interesting approach, but does it strike anyone else that a $17.5-million fund for disasters is not going to go tremendously far? If this succeeds, though, watch as the floodgates open as other counties try the same thing.
--Lauren Beale
Thoughts? Comments?
te
