Las Vegas Real Estate is feeling the effects of the Federal Government’s generosity, as they are sending $75 million for emergency assistance to purchase and redevelop Las Vegas foreclosed properties, based on information the U.S. Department of Housing and Urban Development announced last Friday.
Influx of Money & Overview of Process
The funding includes $24.3 million for the state, $22.8 million for Clark County, $3.2 million for Henderson, $14.8 million for Las Vegas, and $6.8 million for North Las Vegas. Approximately one in very 100 properties throughout the state of Nevada are in foreclosure, which is causing a blight in some of our neighborhoods.
On a National basis, a total of $3.92 billion was allocated by Congress as part of the Economic Recovery Act of 2008. Local government formulas were determined by the number/percent of foreclosures, sub prime mortgages and mortgage defaults and delinquencies, according to HUD’s guidelines announced last week.
Positive News for Las Vegas Real Estate
We believe this is very positive news for Las Vegas Real Estate, as these funds will help to rejuvenate some homes and neighborhoods that are feeling the effects of our difficult economy that has in turn generated a large number of Las Vegas Foreclosures.
The focus of these funds is to deal with the large number of Las Vegas homes that have been abandoned and are just sitting vacant and in some disrepair. The Department of Housing and Urban Development have indicated the primary usage of this money is to buy and refurbish abandoned properties, but there is more flexibility for these funds than what HUD has indicated.
The city of Las Vegas has to submit a detailed plan to HUD by December of this year mapping out how they intend to use the funds.Then, HUD will review for approval and the city will have 18 months to spend the funding on various projects.
Nevada’s State Housing Focus
Lon Deweese, Nevada State Housing Division chief financial officer, said the state will hold a series of meetings in the next few weeks to discuss the state’s portion of the funding, which he said could go to local governments or other organizations for down payment assistance, fixing up foreclosed neighborhoods, and home buyer counseling and assistance.
“That’s $24 million plus that’s not built into anybody’s budget,” Deweese said. “Depending on how it is allocated and to what types of jurisdictions, the state budget will have to be tweaked to that amount, which means the legislature will have a bite of that apple.”
Our Analysis of Impact on Las Vegas Real Estate
It’s certainly obvious to those of us who live here and any investor or new prospective homeowner that some of our neighborhoods in the Las Vegas region are showing distress. Meaning, we have a large number of Foreclosed homes, with some of these being abandoned in haste, leaving a mess behind for others to clean up.
And, like other cities around the country, we’ve had unscrupulous individuals take advantage of these abandoned homes in some cases by breaking into them and stealing anything/everything not nailed down.
We believe this infusion of cash into our local economy in the form of rescuing some of our homes and neighborhoods is a very good thing – it will improve the quality of our Las Vegas real estate. And, it will help to revitalize some of the hardest hit areas restore confidence in consumers and visitors.
Aesthetics are important to all of us and perception is reality! The more we improve the overall quality of our neighborhoods the better off we will all be for the near and long term!! Call us today for a great deal on Las Vegas Real Estate!!!
