Tampa receives $13.6 million to prevent mortgage defaults

10/16/08 Mitch E. Perry
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Last month the Housing and Urban Development Department announced that Florida will get more than $500 million in new federal foreclosure funds to prevent further home loan defaults and deal with the foreclosure crises.

Today, the director of Tampa’s Business and Housing Development Department, Cyndy Miller, said the city will get $13.6 million dollars.

Under the legislation, the money may also be used to create land banks to acquire, manage and sell distressed property. Miller said in the next month her staff will be looking at census data, foreclosure data, and determine what properties are available. But she said there are a couple of places that she sees significant need of help to prevent foreclosures.

She said those areas would be important for first-time home buyers.

The Department of Housing & Urban Development based the distribution of funds on a formula that calculated the number and percentage of foreclosures as well as the proportion of subprime loans, mortgage defaults and delinquencies.

According to the Miami Herald, as of June 30, Florida had the highest percentage of foreclosures in the country, with 6 percent of all mortgages in default, representing some 200,000 properties. And she said she hoped to provide rental accommodations for those who have recently lost their homes due to foreclosure.

Councilman Thomas Scott, who sits on the affordable Housing Task Force, praised Miller.

Miller will come back before the Council with more details on what the city is doing with funding on Nov. 20.

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