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. . .