Ohio City Approved Buying of Foreclosed For Sale Homes

by on cities

Dayton, Ohio has approved an agreement with Citywide Development Corporation to launch a program to purchase and rehabilitate vacant and foreclosed for sale homes. Under the agreement, CityWide will find vacant and newly foreclosed properties in stable neighborhoods to purchase, renovate and place on the market for sale.

The Dayton City Commission has approved the Ohio Neighborhood Stabilization funding of $625,105 for the program to buy, fix and sell foreclosure houses.

Mayor Rhine McLin said that the city is committed to revitalizing neighborhoods and to using wisely the resources available towards the achievement of that goal. Under the program, about 15 foreclosure homes will be rehabilitated within three years. Each foreclosed house will be allotted $50,000 for repairs.

Citywide has started working with the city’s Department of Planning and Community Development and neighborhood groups to identify eligible properties. For the start of the program, foreclose homes to be purchased and rehabilitated must be located in neighborhoods of Princeton Heights, Dayton View Triangle, University Row, Historic Innereast and South Park.

The rehabilitated houses will be placed on the market for sale at fair value. This indicated that the deal will be subsidized. Those who will be eligible to make a purchase under the program are buyers who are earning equal or less than 120 percent of the city’s annual median income or about $52,600 for a household of two.

Meanwhile, the Dayton Triangle neighborhood is another recipient of the program designed to prevent the further deterioration of historic communities in the city. Residents of Dayton Triangle, a neighborhood popular for its classic architecture, support the plan of the city to rehabilitate older and foreclosed homes.

Dayton Triangle Federation President Mike Dolinski said that the city will spend about $625,100 on the rehabilitation project for the neighborhood. He expressed his satisfaction over the project, adding that the neighborhood needs a development that will help stabilize the property values.

Dayton posted the fifth highest foreclosure numbers among Ohio cities for the first six months of this year.

Statewide, foreclosure filing was one in every 460 households in July. This earned Ohio the 12th spot in terms of high foreclosure rate nationwide. Industry experts, however, are expecting foreclosures to continue to rise in the coming months as unemployment remained unabated.