Fountain Valley setting the trend for Santa Ana in converting foreclosures to affordable housing?

footprints-to-water.jpg An OC Regsiter article in Sunday’s paper (“Looking forward on foreclosures“) by Julie Anne Ines discusses the proposed policy in Fountain Valley where the City would buy bank-owned homes and then sell them as affordable housing.  While Fountain Valley is the first OC city to put any action behind this notion, they’re likely not to be the last. Cities buying bank-owned properties and converting them to affordable housing is supported by legislation signed by President Bush in July, which not only allows the cities to participate but provides federal funds.

According to Ines, Fountain Valley only had 32 foreclosures in the second quarter of ’08, as compared to 171 foreclosures in Santa Ana for the same period.  The allocation of the federal funds is to be made based on the need within the cities.  Given what we all know about foreclosure-mania Santa Ana, that means, according to Ines, that Santa Ana could see some funding in as little as two months.  Could Fountain Valley be leading Santa Ana into affordable housing bliss, or maybe just another foreclosure-saturated abyss?

So, what might the City of Santa Ana have to choose from when they’re looking to buy bank-owned properties.  Currently, there 159 bank-owned properties listed in Santa Ana (98 houses and 61 condos).  Here’s a sampling of what could soon be affordable housing. . .

1082 Cabrillo Park Dr #D, Santa Ana 92701; 1 bed/1 bath condo; 825 sq ft; listed for $139,900; last sale before foreclosure$300,000 on Jun 23, 2006

3930 W 5th St #101, Santa Ana 92703; 2 bed/2 bath condo; 904 sq ft; listed for $169,900; last sale before foreclosure$355,000 on Oct 6, 2006

2302 Keegan Way, Santa Ana 92705; 3 bed/2 bath house; 1,375 sq ft; listed for $369,900; last sale before foreclosure$639,500 on Oct 12, 2005

1215 S Sycamore St, Santa Ana 92707; 4 bed/1 bath house; 1,788 sq ft; listed for $389,900; last sale before foreclosure$640,000 on Jan 25, 2007

  • ron

    The market will create “affordable housing” on its own. This is a way to bail out lenders holding onto overpriced properties.

  • http://orangecounty.redfin.com/blog/author/julie.lance Julie Lance

    The OC Register article did mention the positive benefits to the lenders stuck with these properties. It might be seen as a little bit of “secret bailout” by the Feds to the lenders, but I think it might be a good approach.

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