Communities included: Echo Park, Silver Lake, Atwater, Highland Park, Glassell Park, Eagle Rock, Mt. Washington, Montecito Heights. Single Family: September/October
Residential Income (2-4 units)
Condo:
(Source: The MLS)
The city of Los Angeles is putting its Neighborhood Stabilization Program (NSP) funds to work with the launch of a new initiative to create jobs rehabilitating foreclosed properties in communities impacted by the housing crisis. City officials were joined by HUD in announcing the “Bridges to Business Success” initiative at the site of the program’s first construction project at14651 Novice Street, an NSP-acquired foreclosed property in Panorama City.
“Bridges to Business Success is an innovative approach to utilizing HUD’s Neighborhood Stabilization Program funding,” Ophelia Basgal, HUD’s regional administrator, told reporters.
“Not only is this program providing opportunities for small business development and job creation but it will also address the stabilization of neighborhoods hardest hit by foreclosures by rehabilitating vacant homes like this one here in Panorama City and those throughout the Los Angeles metro area,” Basgal said.
The Bridges to Business Success program is a public-private initiative providing small minority business owners with procurement training and contract opportunities to create and retain jobs.
The city of Los Angeles was awarded $143 million in NSP funds from HUD to address the negative impact of foreclosures, to stimulate the creation and retention of jobs, and to advance the stabilization of neighborhoods.
In partnership with Restore Neighborhoods LA, Inc., the Los Angeles Housing Department (LAHD) has acquired, rehabilitated, or developed over 780 units of housing and created or retained over 1,100 full-time and part-time jobs to date.
“It’s so rewarding and refreshing to be part of such a great revitalization effort,” said Dale McPherson, president of Field Asset Services. “LAHD and its partners have created a one-stop shop initiative that will restore one of the hardest-hit communities in the nation.”
As part of the government’s Real-Estate Owned (REO) pilot program, Fannie Mae has put nearly 2,500 foreclosures, including properties in Los Angeles, up for sale as rental units. Pre-qualified investors will be able to bid on these homes, of which only 429 are vacant according to DSNews.com. The majority of those 2,500 properties are located in Los Angeles and Riverside, making up 23% of the units.
The idea behind the government’s REO initiative is that the rental market is in high demand, and turning those foreclosures into rentals would stabilize neighborhoods and the reduce number of foreclosures on the market.
Investors interested in the pilot program can visit the FHFA REO Initiative page of the Federal Housing Finance Agency website.
