Avondale applies for federal aid to slow home vacancies

Avondale is applying for $2,466,039 in federal money in hopes of slowing home vacancies brought on by increasing foreclosures throughout the city.

Of the 23,073 single-family homes in Avondale, 1,696, or 7.4 percent, are in foreclosure and an additional 891, or 4 percent, are delinquent mortgages and are in pre-foreclosure.

"For one, we don't believe the economy will really turn around until that excess inventory of homes is absorbed," City Manager Charlie McClendon said. "Secondly, vacant homes in a neighborhood have a negative effect on the neighborhood in both the way it appears and the way people feel about their neighborhood. So it's important, I guess in the psyche of the community, to address that as well. We've worked really hard, even with vacant houses to make sure they still look OK."

The city is applying for Neighborhood Stabilization Program money that will be used to help borrowers buy some of those vacant homes.

The federal money would be split in the following ways:

• $1,230,000, about 50 percent of the money, would be used to assist up to 60 buyers purchase foreclosed homes. Eligible buyers are individuals or families with a household income up to 120 percent of the area median income, which is $77,050 for a family of four.

• $616,510, 25 percent, would be used to redevelop property to make about 40 rental units available. The program regulations require that at least 25 percent of the money be used to assist those with household incomes not exceeding 50 percent of the area median income, which is $32,100 for a family of four.

• $372,925, 15 percent, would be used for acquisition and demolition of three blighted and foreclosed properties.

• $246,604, 10 percent, would be used for administration. In addition to administrative costs, some programs will have to be contracted.

Avondale is hurting when it comes to foreclosures. Some neighborhoods have foreclosure rates as high as 21 percent. These same neighborhoods also have the highest delinquency rates, some as high as 10 percent.

At the current rate, the city estimates that over the next year or two, one out of every three homes will be vacant in some neighborhoods.

In addition, homeowner associations are going broke from the lack of dues being paid. More of the HOA problems are now costing the city money at a time when Avondale is financially strained.

Not to mention that vandalism, theft and squatting rates are on the rise as well.

Avondale isn't alone when it comes to growing foreclosure rates, though.

Southwest Valley communities that were growing at an unprecedented pace just four years ago are now facing record-high foreclosure rates.

For that reason, the mayors of Avondale, Buckeye, Goodyear, Litchfield Park and Tolleson are holding a Southwest Valley Forum on Foreclosures. Local, state and federal leaders will gather to discuss the impact of foreclosures on residents, businesses and the local economy and to seek solutions.

The forum will include panel discussions with banks, mortgage companies and housing-resource experts.

"A person's home is more than just bricks and mortar, it is the heart of a family," said Avondale Mayor Marie Lopez Rogers. "While the federal government debates plans to revitalize the economy, homeowners in our communities need to find help now. This forum is intended to bring elected and community leaders together to gain some insight into potential policy changes at every level to mitigate the impact of foreclosures in our communities."

The forum will take place at 8 a.m. Dec. 11 at Avondale City Hall Council Chambers, 11465 W. Civic Center Drive. Registration and a continental breakfast will begin at 7:30 a.m.