Miami

Nov. 20, 2008

A Drop in the Bucket

Miami Launches Foreclosure Program and Economic Stimulus Package

By Stephanie Rodriguez

With the swelling economic crisis, the Miami City Commission is taking a step to solve the foreclosure problem in Miami.

The commission approved a $500,000 foreclosure program Thursday that will fund loans of up to $7,500 to help save residents’ at-risk homes.

The initiative is designed to assist homeowners with an assessed value of $300,000 or less.

“It is important to let people know that there is assistance out there,” said Commissioner Joe Sanchez.

One of the main requirements is that an applicant’s income must be 80 percent or less than the median for Miami, or approximately $56,966 per year according to recent census data, and the homeowner needs to demonstrate some kind of ability to make future payments once aid is received.

A loan applicant also cannot have more than one property in foreclosure.

“We think about 100 homes will be rehabilitated,” said Commissioner Tomas Regalado. “It’s not a big deal. It’s just a drop in bucket … I don’t think it will do much to solve the foreclosure program in Miami.”

Roughly 279,500 Miami homes have foreclosed over the last year, an increase of 5 percent over the previous year. The foreclosure rate increased 25 percent in October.

While the program will help a small group of people, another City of Miami initiative will assist in one of the biggest problems in the city.

Commissioners also approved an economic stimulus package that will help the construction industry and create jobs, and roughly $12 million was slated to help stabilize, renovate and assist with abandoned properties in neighborhoods.

The economic stimulus package permits contracts for dozens of capital-improvement projects that can be started without prior city commission approval.

The incentive will help contractors speed up by several months the building process. However, some still had concerns.

“I understand this project is mainly geared toward residential properties — this allows commercial properties to be destroyed,” said resident Leroy Jones. “A community is as good as its business. If we don’t save the businesses, we can’t save the community.”

Although, according to Regalado, there are roughly 700 abandoned properties in Miami, and most of the money will go to them. Regalado also expressed concern about the even distribution of the money in the city’s several districts.

“I hope that we, the city, do not discriminate, like District 4, which is totally Hispanic,” he said.

Commissioner Joe Sanchez agreed.

“We have to make sure that we are working with different communities,” Sanchez said.

Director of Community Development George Mensah assured the commission that the project would be done fairly.

“There’s a lot of work to be done, and I think the city will start seeing change,” Mensah said. “We are also taking applications for the foreclosure program already.”

For more information on the new programs, call the City of Miami at 305-416-2080.

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