The purpose of the money is “to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.”
If you hear a clock ticking, it’s because South Dakota should receive its share ($19.6 million) in the first quarter of 2009. (click here for your state’s allocation) Then, states have 18 months to commit those funds to projects. That’s operating at light speed for the federal government!
While $19.6 million is a lot of money, there’s going to be tremendous interest in it. Currently, South Dakota’s plan calls for 20% to go to Sioux Falls, 20% to Rapid City, and 20% to the Indian Reservations. But let’s get down to the details. How can your rural community use this infusion of capital?
Infusion of capital, indeed. Why do neighborhoods need to be stabilized again? I realize that I keep saying some of the same things, but government has no business being in the business of business. This includes, most definitely, the business of real estate.