Addressing foreclosure crisis

Thursday, Oct. 2, 2008 | 2:06 a.m.

One of the unfortunate outcomes of the housing slump in the Las Vegas Valley is the effect the record number of foreclosures is having on neighborhoods. Entire city blocks resemble checkerboards of properties for sale or in foreclosure mixed with homes that aren’t on the market.

Sadly, many of the foreclosed homes have yards that have not been kept up. Multiply that by several homes on a block and you have a neighborhood many prospective buyers may want to avoid.

That is why it was refreshing to read a Tuesday story in the Las Vegas Sun in which reporter Brian Eckhouse wrote about a federally funded program that could help revive residential areas while increasing the availability of affordable housing.

Clark County and its municipalities will receive $47.6 million as part of the Housing and Economic Recovery Act of 2008, a bill passed this summer by Congress to help communities with high foreclosure rates. The government agencies can use the money to purchase or rehabilitate properties and then sell them to low- and moderate-income buyers, or can use the money to help those buyers with down payments and closing costs.

The agencies have until Dec. 1 to devise a plan of action and must spend the money within 18 months, so positive results should be seen soon.

It is unrealistic to expect this program will solve all the housing problems associated with the foreclosure crisis, but it certainly is welcome in these tough economic times.

For that reason the county and Las Vegas, Henderson and North Las Vegas should spend the money wisely by ensuring their plans identify the neighborhoods that need help the most. Well-crafted plans that produce results by uplifting neighborhoods and enabling lower-income individuals to purchase homes — without getting trapped by unaffordable mortgage loans — might encourage Congress to put more money into the housing program next year and beyond.