Two more area communities are eligible for federal grants to combat blight and falling home values caused by high numbers of foreclosures and abandoned properties.
Palm Coast is eligible for $2.66 million, and Daytona Beach could get $2.38 million to buy, renovate and resell or rent foreclosed homes as affordable housing, state officials said Wednesday.
The Neighborhood Stabilization Program money is part of $541 million the U.S. Department of Housing and Urban Development awarded Florida last summer. The program is one of several in the Housing and Economic Recovery Act of 2008 passed July 30.
HUD officials in September initially awarded $450 million directly to 48 Florida cities and counties.
Deltona was given $6.6 million and Volusia County was given $5.2 million, primarily based on the number of foreclosures and mortgage defaults in the two communities. The money must be used to purchase, fix and sell foreclosed homes as well as provide down payment and closing cost assistance.
The state set aside the remaining $91 million for the other city and county awards that were announced Wednesday.
"The foreclosure crisis has affected communities statewide from Key West to Pensacola, and I am thankful the U.S. Department of Housing and Urban Development is authorizing the release of the funds," Gov. Charlie Crist said. "This money, along with the federal funds being distributed directly to additional communities, will provide help across the entire state."
The 26 state awards are based on HUD data and methodology. Incomes also were considered to locate communities in greatest need that may or may not be in the same counties that received direct federal grant, said James Miller, spokesman for the state Department of Community Affairs.
The state grants include two pots. One is for purchase and renovation to sell or rent foreclosed homes. Palm Coast is eligible for $2.17 million and Daytona Beach can get $1.66 million.
The second, smaller amounts are for rentals to low-income families. Palm Coast's possible grant is $486,923 and Daytona Beach could get $694,981.
"We will definitely apply for the larger amount and work with nonprofit groups and Flagler County housing officials to implement a program," said Bau Salgout, Palm Coast senior planner. "We are not sure about the smaller pot as we do not have experience in managing rental properties."
Daytona Beach will file by Friday its intent to apply for the grants and go to a mandatory state meeting Feb. 19, but is unsure if it would complete the process, Development Services Director Paul McKitrick said.
"The uses are limited. We are still evaluating the benefits before we recommend an application," he said. "There also is no administrative money included."
If the cities apply and are awarded the grants, they would have until April 6 to file an action plan for state approval.
By BOB KOSLOW Staff Writer Datona News Journal
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