Foreclosure homes for sale in a neighborhood bring nothing but devastation to the area’s economy and housing market. Foreclosure properties pull down home values and prices and become eyesores to the neighborhood.
In Rice County, Minnesota, about 236 foreclosure properties were reported in the first nine months of this year. This devastating effect of foreclosure is called neighborhood destabilization and the nonprofit organization, Three Rivers Community Action Inc. is committed on stopping the problem.
The nonprofit group, which serves low-income individuals and families in the area, has purchased 20 foreclosure homes for sale in southern Minnesota. It will rehabilitate them into energy-efficient and environmentally friendly houses as part of its Home Matters project.
The nonprofit organization will then resell the renovated houses at their assessed value to eligible low-income buyers. The deal includes interest-free deferred loans, gap financing and down payment assistance to make the properties accessible to qualified buyers.
Jennifer Larson, director of Three Rivers Community Development, said that the foreclosure houses chosen by the organization to undergo rehabilitation are in deteriorated stage. She said that the organization intends to fix them and turn them into assets for the neighborhood.
The nonprofit organization has partnered with other entities, including the Northfield Housing and Redevelopment Authority. For its first project, it gutted a foreclosed home at 311 Cherry Street in preparation for the work to convert it into a model house. Under the plan, the foreclosed home will be equipped with low flowing shower heads, new windows, energy-efficient furnace, heat pump that is air sourced and water heater with solar power.
Organization officials said that about $50,000 is allotted for green renovations, such as energy-efficient appliances and new installation. They said that these renovations will help homeowners reduce their utility payments.
Industry experts said that the green renovation program will allow low-income families to own affordable houses that, in the long term, will reduce the possibility of another foreclosure. The program also involves removal of old carpeting which may have accumulated chemicals and allergens, improving air exchange system and using paint containing volatile organic compounds in low level.
Industry experts said that converting abandoned and vacant foreclosure homes for sale will make any neighborhood a healthy and safe place to live.
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