$10.4 million to target 56 Las Vegas houses facing foreclosure

Las Vegas officials approved a plan Wednesday that directs millions of federal dollars toward addressing the ongoing housing foreclosure mess, but expressed disappointment that the $10.4 million would help only 56 houses in a narrowly targeted neighborhood.

"I wish that the federal government would let us do more than they are today because we need more than this," Councilman Steve Ross said.

The money is part of $970 million dispensed by the Department of Housing and Urban Development to rehabilitate abandoned, foreclosed and short sale properties, then help people occupy them.

Las Vegas' plan for spending the grant is due by March 1.

The plan focuses on a neighborhood bordered by Buffalo Drive, Gowan Road, Alexander Road and El Capitan Way. Of the 2,400 housing units in the area, 125 have been vacant for at least 90 days. About 18 percent are at least 90 days behind in payments or in foreclosure, and there have been 269 foreclosure starts in the last year, according to city officials.

"It's a very nice neighborhood," said Councilman Stavros Anthony, who represents that area. "But you have houses that are empty. They're starting to deteriorate. I look forward to seeing how this is going to work out."

The city's plan includes:

■ $6.2 million to be used to buy and rehabilitate 40 homes.

■ $300,000 to help people buy those homes

■ $2.6 million to buy and maintain 16 houses, which will be rented by low-income households

■ $1.2 million for administration and professional work, such as appraisals.

The properties have income and purchase restrictions. They will be purchased at 1 percent below appraised value. The home-buying programs will be open to those who make less than 120 percent of the area median income, which would be $78,850 for a family of four.

The rental program is open to those making less than 50 percent of the area median income, which would be $32,850 for a four-person household.

This is the second round of funding from this program that the city has received. The first allocation of $20.6 million was used to buy 128 houses. Of those, 88 were destined for renovation and re-sale, and 42 have been sold or are on the market so far. The other 40 are being fixed up as rental properties. In addition, the funding helped 26 qualifying families buy homes on the open market.

There were 9,353 bank-owned homes in the Las Vegas area in January, according to ForeclosureRadar, a real estate tracking service.

Contact reporter Alan Choate at achoate@review journal.com or 702-229-6435.