Local Government Gives Hope to Constituents Facing Home Foreclosure

For quite a few Lansing City residents, it is either the devil or the deep blue sea. The economic crisis has affected wage earners, putting them in danger of eviction. Even those who can pay the rent face a similar crisis as landlords are losing properties to foreclosure.

The housing crisis is a national problem. Foreclosed homes risk becoming abandoned, and attract trouble, while those whose homes have been foreclosed are pushed to homelessness. With a 9.3 percent rate; Lansing ranks 9th in Michigan’s list of areas with the highest foreclosures. In Ingham County alone, 834 homes were repossessed in this year’s third quarter. The figure shows a 4.2 increase from the 2007 third quarter period.

This is why residents were happy to hear that the city plans to infuse nearly $6 million dollars of a government grant towards alleviating the housing problem.

The multi-million funding was given by the U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program, and was part of HUD’s one-time grant of $3.9 billion dollars distributed nationwide. Twenty three stabilization grants totaling 263.6 million were also apportioned to Michigan. The bulk, $98.7 million, is going to the state which may distribute the money to its various communities, aside from HUD grant.

The aid may not do anything for families heading towards foreclosure, but a part of it will be used to help renters. Another portion of the funds distributed by the program is supposed to go either to property redevelopment or acquisition for resale, or acquisition and demolition.

City Mayor Virg Bernero has organized a task force to come up with a budget proposal to help eight crucial areas which include Oak Park, Baker Donora, Urbandale, and portions in the north and southwest areas. Bernero himself has already proposed a $1.5 Million allocation for providing homes for the homeless. A center to facilitate counseling services in housing issues is also in the works.

Lansing residents may attend two upcoming meetings to review the city’s plan. Bernero also urges homeowners facing foreclosure to telephone the confidential community referral service at 211.