Local Governments Seek Foreclosure Assistance through SHIP
Over the past several months, local governments have been amending their Local Housing Assistance Plan in an effort to develop a Foreclosure Avoidance Strategy. They are seeking funds through the Florida Housing Finance Corporation and the State Housing Initiatives Partnership (SHIP) to position themselves to offer loans to homeowners whose homes are threatened by foreclosure. Although the details of these programs vary, they all are offering loans ranging from $7,500 to $10,000 at zero interest and that do not have to be paid back.
The purpose of SHIP dollars is to fund emergency repairs, new construction, rehabilitation, down payment and closing cost assistance, impact fees, construction and gap financing, mortgage buy-downs, acquisition of property for affordable housing, matching dollars for federal housing grants and programs, and home ownership counseling.1
SHIP is funded through the Doc Stamp Tax and with revenues on the decline from that source, one wonders if this kind of foreclosure avoidance strategy is a sustainable one. The following is a sampling of issues from our database related to the development these kinds of relief strategies.
- Leon County, FL to Consider Adoption of Resolution Regarding a Proposed Amendment to the State Housing Initiatives Partnership Local Housing Assistance Plan
- Sarasota, FL to Hold Discussion of Proposed Amendment to the Local Housing Assistance Plan, FY 2008 – 2010
- Deltona, FL to Consider Approval of State Housing Initiatives Partnership Program Proposed Amendment
Are foreclosure bailouts a good use of this shrinking pool of financial resources or should SHIP dollars be used for their original intent?
1. Florida Housing, State Housing Initiatives Partnership (SHIP). Retrieved March 5, 2009, from http://www.floridahousing.org/Home/HousingPartners/LocalGovernments/
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