Federal dollars that are en route to communities across the nation to help with foreclosed homes, including those in Southern Nevada, are welcome, Las Vegas City Council members said today.
But Mayor Pro Tem Gary Reese summed up the council’s criticism of the new program: “What about the poor people who’ve lost their homes already?”
The comments came during a general discussion of foreclosed homes at the council’s regular meeting.
Nevada is in line to receive $72 million from the new $3.92 billion Neighborhood Stabilization Program. Local governments are working on plans for allocating the funds, which can be used to buy properties, demolish or rehabilitate them, and offer help with closing costs and down payments for low- to moderate-income buyers.
The program does not offer funding to prevent people from being foreclosed upon, nor is it targeted at getting people back into homes that they lost.
“To me, it makes no sense at all,” said Mayor Oscar Goodman. “I think they’ve done it inside out and upside down and backwards.”
The program will still do some good, Councilman Ricki Barlow said.
“I am very grateful to the federal government for the monies that have been allocated,” he said. “The flip side of that is, the money that we receive from the federal government goes back to the banks. It’s a win on one hand, but it’s a loss on the other.”
The program is part of recently passed federal housing legislation. Clark County will receive $22.8 million and the city of Las Vegas $14.8 million for foreclosed and abandoned properties.
North Las Vegas has $6.8 million coming, and Henderson will have $3.2 million.
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