Foreclosed Nassau Homes Being Converted Into Low-Cost Housing
January 25, 2013
Rehabilitated houses being turned into homes for first-time buyers
(Long Island, NY) With affordable housing on Long Island getting harder and harder to find, this week Nassau County announced a new program being initiated to give new families struggling achieve their dreams of owning a home a big boost.
The new program enables the Neighborhood Stabilization Program, in partnership with Nassau County, to use Federal funds to rehabilitate and renovate foreclosed houses for purchase by first-time home buyers.
Nassau County Executive Edward P. Mangano said that helping out families in getting their first home in turn helps out the current residents of Nassau as well.
“With the use of Federal dollars, this program reclaims foreclosed homes,” he said. “The program assists first-time homebuyers and helps stabilize residential neighborhoods by maintain home values. It’s a win-win for Nassau County.”
The funding for rehabilitation of four homes has been authorized by the County Legislature, thereby making these houses available to an income eligible family. Eligible homes are in “target areas” including Elmont, Valley Stream/North Valley Stream, Freeport, Uniondale, and Roosevelt.
Federal Housing and Urban Development (HUD) program guidelines cite an eligibility income level of 120% of the area median income for interested homebuyers. Currently, a family of four can earn up to $129,000 and qualify for the program.
Once renovated, these homes may not be sold above the appraised value. Those applying may not exceed income limits; they must occupy the home as their primary residence for up to15 years (depending on the level of subsidy); and they must have no foreclosures in the last five years or bankruptcies in the last three years..
Nassau County works with program partners to identify eligible foreclosed and abandoned homes. Under the first round of the Neighborhood Stabilization Program, the County’s program partners purchased 30 foreclosed homes ineligible areas. Thus far, 17 homes have been sold to eligible first-time home buyers while another 13 are in various stages of development and being readied for contracts.