WASHINGTON – Nov. 11, 2015 – The Federal Housing Finance Agency (FHFA) announced an expansion of the Neighborhood Stabilization Initiative (NSI) to 18 additional metropolitan areas around the country, including four in Florida: South Florida, the Orlando area, the Tampa area and Jacksonville.
Effective Dec. 1, local community organizations in the metro areas will be able to buy foreclosed properties owned by Fannie Mae or Freddie Mac before the general public has a chance.
FHFA, Fannie Mae and Freddie Mac jointly developed NSI through a partnership with Fannie Mae and Freddie Mac and the National Community Stabilization Trust (NCST). The pilot program launched initially in Detroit and was later extended to the Chicago metro area.
“The number of REO properties that Fannie Mae and Freddie Mac hold continues to decline nationwide, but there are still some communities in which the number of REO properties remains elevated,” says FHFA Director Melvin L. Watt. “Our goal is to take what we learned in Detroit and Chicago and apply it to these additional communities as quickly and efficiently as possible.”
Watt says “giving local community buyers an exclusive opportunity to purchase these properties at a discount, taking into account expenses saved through a quicker sale, is an effective way to give control back to local communities and residents who have a vested interest in stabilizing their neighborhoods.”
The 18 metropolitan areas designated for NSI expansion include:
Atlanta-Sandy Springs-Roswell, Georgia
Miami-Fort Lauderdale-West Palm Beach, Florida
New York-Newark-Jersey City, New York-Pennsylvania-New Jersey
Philadelphia-Camden-Wilmington, Pennsylvania-New Jersey-Delaware
St. Louis, Missouri
Tampa-St. Petersburg-Clearwater, Florida
Community organizations in South Florida estimate that about 2,000 foreclosed homes could eventually end up in the program, which focuses on homes valued at $175,000 or less.
“It’s very difficult to compete with investors who get distressed properties,” Terri Murray with the nonprofit Neighborhood Renaissance told the Miami Herald. “The investors are profit-driven while we are mission driven. This program evens the playing field for us.”
© 2015 Florida Realtors®