Town gets $1.2M to buy foreclosed houses

The town of Culpeper has received $1.2 million in stimulus funds to buy foreclosed homes in some of its newer housing developments through the federal Neighborhood Stabilization Program.

Gov. Tim Kaine made the announcement Monday as part of the $9.4 million awarded to nine localities. Congress passed the program in 2008 to alleviate problems associated with high vacancy rates — crime, lack of maintenance, etc. — in neighborhoods hit hard by foreclosures.

The town will use the $1.2 million to purchase, rehabilitate and resell homes in the Meadows of Culpeper (Belle Avenue), Lakeview (Sperryville Pike) and Highpoint (Orange Road).

The town applied for $1.9 million in July.

These neighborhoods — all built within the past eight years — were identified as having the highest concentrations of foreclosures. The selected homes will have been vacant for at least 90 days, town officials said. Potential homebuyers will be required to complete a housing counseling program and meet income requirements.

Other localities receiving grant awards Monday:

- Catholics for Housing of Prince William County ($1.5 million)
- City of Chesapeake ($1.5 million)
- Chesterfield County ($500,000)
- Fauquier County ($1.5 million)
- City of Franklin ($400,000)
- Lynchburg Neighborhood Development Foundation ($1 million)
- Pathways of Petersburg ($600,000) and
- Virginia Beach Community Development Corporation ($1.2 million).

According to the governor’s release, the funds will be used to purchase approximately 85 foreclosed homes in 24 neighborhoods at a discount price. The homes will be rehabilitated and made available for sale to low-, moderate- and middle-income families.

Today, more than 28,000 Virginia homeowners are in the process of foreclosure, and more than 16,000 foreclosed homes remain vacant around the commonwealth, according to the governor’s office.