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The city will continue buying foreclosed homes under a federal program despite the objections of three commissioners, one of whom this week termed it "the fleecing of America."
Since 2008, Deltona -- one of the area's hardest-hit cities during the housing collapse -- has participated in the Neighborhood Stabilization Program, taking federal dollars to buy houses, rehabilitate them and put them back on the market in an effort to keep vacant, blighted homes from harming neighborhoods.
Three years ago, Deltona received $6.6 million -- which was used to buy 51 homes and two vacant parcels. The rehab work is under way on most, and some homes are starting to be put on the market. The closing of the first home sale is scheduled early next month, said Chris Bowley, the city's director of planning and development services.
Another round of grants was announced in July, with Deltona receiving $1.96 million more. The city plans to follow a similar plan, buying homes, using the new money, although the rules require a more focused approach, targeting one neighborhood.
On Monday, city officials brought their plan to the City Commission for its blessing. Three commissioners in particular -- Zenaida Denizac, Herb Zischkau and Fred Lowry -- expressed reservations and brought a vote to give the money back to the U.S. Department of Housing and Urban Development.
Their motion failed, 4-3, and the City Commission then voted 4-3 to accept the money and carry out the plans offered by city staff.
Commissioner Heidi Herzberg argued the money was providing jobs for residents, administrative money for Deltona's budget and keeping some of thousands of foreclosed homes from becoming eyesores.
Mayor John Masiarczyk said he dislikes the program and "90 percent of the aspects of how it's being operated," but ultimately he voted to keep it.
"A lot of business people wouldn't purchase these homes," he said. "They would become a blight to the community."
Denizac said the city can buy and fix 50 or 70 homes, but that's "not going to solve the problems of over 33,000 homes in Deltona."
She said the city is buying homes for more than their worth, putting more money into them and then putting them on the market with little hope of selling them at a price that will break even.
"It doesn't make sense to me," she said. "I think we ought to look at the bigger picture."
Lowry questioned the city being "in the housing business," competing with individuals and small businesses who might be trying to sell houses.
http://www.news-journalonline.com/ne...-fleecing.html
Since 2008, Deltona -- one of the area's hardest-hit cities during the housing collapse -- has participated in the Neighborhood Stabilization Program, taking federal dollars to buy houses, rehabilitate them and put them back on the market in an effort to keep vacant, blighted homes from harming neighborhoods.
Three years ago, Deltona received $6.6 million -- which was used to buy 51 homes and two vacant parcels. The rehab work is under way on most, and some homes are starting to be put on the market. The closing of the first home sale is scheduled early next month, said Chris Bowley, the city's director of planning and development services.
Another round of grants was announced in July, with Deltona receiving $1.96 million more. The city plans to follow a similar plan, buying homes, using the new money, although the rules require a more focused approach, targeting one neighborhood.
On Monday, city officials brought their plan to the City Commission for its blessing. Three commissioners in particular -- Zenaida Denizac, Herb Zischkau and Fred Lowry -- expressed reservations and brought a vote to give the money back to the U.S. Department of Housing and Urban Development.
Their motion failed, 4-3, and the City Commission then voted 4-3 to accept the money and carry out the plans offered by city staff.
Commissioner Heidi Herzberg argued the money was providing jobs for residents, administrative money for Deltona's budget and keeping some of thousands of foreclosed homes from becoming eyesores.
Mayor John Masiarczyk said he dislikes the program and "90 percent of the aspects of how it's being operated," but ultimately he voted to keep it.
"A lot of business people wouldn't purchase these homes," he said. "They would become a blight to the community."
Denizac said the city can buy and fix 50 or 70 homes, but that's "not going to solve the problems of over 33,000 homes in Deltona."
She said the city is buying homes for more than their worth, putting more money into them and then putting them on the market with little hope of selling them at a price that will break even.
"It doesn't make sense to me," she said. "I think we ought to look at the bigger picture."
Lowry questioned the city being "in the housing business," competing with individuals and small businesses who might be trying to sell houses.
http://www.news-journalonline.com/ne...-fleecing.html
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