More money for housing program welcomed

Clark County officials and congressional leaders welcomed millions of dollars in federal funds earmarked this week for the Las Vegas Valley to rid neighborhoods of empty foreclosed houses in one of the nation's hardest-hit markets.

Under the program, local governments work with nonprofit developers to buy, renovate and sell foreclosed houses to lower-income buyers. A smaller part of the program spruces up apartments to rent to poorer residents.

The U.S. Housing and Urban Development office approved funneling $43 million to Nevada, whose foreclosure rate is among the highest in the country. The money is expected to become available early next year.

"We still have some hurdles ahead of us, but I think we're on the right track," said Mike Pawlak, a supervisor with the county Community Resources Management.

Clark County will receive $16 million and North Las Vegas will get $4 million, Pawlak said.

HUD also allocated $10.5 million to Las Vegas and $4 million to Henderson.

Reps. Dina Titus and Shelley Berkley on Friday met with a Henderson family that bought a home through the program.

"No one wins when neighborhoods become blighted and homes sit empty," Berkley said in a written statement.

This is the third round of federal funding for the program. Southern Nevada received $64 million in the first phase but none in the second because federal officials said local governments had spent too little of the initial $64 million.

Pawlak said HUD approached this round of funding similar to the first round, basing it on need rather than making it a contest.

To qualify for the program, home buyers' income must be no more than 120 percent of the area's median income. The maximum is $54,300 for a single person and $78,000 for a four-person household.

So far, the county has bought 200 houses through the program. Of those, 20 have been fixed up and sold.

About 100 are being renovated, 20 are in escrow and the rest are about to go out to bid for remodeling, Pawlak said.

The program has gained steam since the county began working with the National Community Stabilization Trust, Pawlak said.

The agency puts the homes into a program that allows nonprofit developers representing the county to make the first offer, Pawlak said.

Before, people would try to buy the properties themselves but often would get nudged out by buyers offering cash or bigger down payments, Commissioner Chris Giunchigliani said.

The local program appears to be picking up, Giunchigliani said. Still, she would prefer that some money be used to keep people from losing their houses.

"It would've been better to have foreclosure prevention," she said.

Commissioner Susan Brager, who works in real estate, said she was happy for the boost in federal funding. But she sees a few roadblocks, such as investors buying up many of the available houses.

Contact reporter Scott Wyland at swyland@reviewjournal.com or 702-455-4519.