OUR VIEW: Two sides to government purchasing foreclosures

The town’s participation in the Neighborhood Stabilization Project has merit but also raises concerns.

The town of Culpeper’s application for membership in the Neighborhood Stabilization Project is due Wednesday, and Town Council meets tonight to likely throw its weight behind the federal project.

While this grant could serve a useful purpose locally, the bigger picture is that it’s another step toward heightened government influence in a major industry.

Started as part of George W. Bush’s housing and economic recovery plan, the stabilization project helps put worthy homeowners in vacant homes — homes that otherwise could lower property rates for neighbors or, worse yet, serve as havens for squatters.

Under the program, the town would purchase, fix and resell about eight homes at a time in its three worst areas of foreclosure — the Meadows, Lakeview and Highpoint. This won’t solve every problem neighborhood, but it should make a dent in the overall crisis.

As a counterweight, we certainly see the point of real estate agents who think government-assistance programs unfairly compete with the private sector. It’s discouraging that government is so immersed in every facet of American life, including the housing market, but that’s the unfortunate reality these days.

As much as some might not want to see it this way, the town really is about to enter the real estate business. And with that comes a unique set of challenges.

Localities turning around foreclosed homes is truly a yin-yang issue. If the town does take the federal money, our hope is that once the economy picks up, the program would scale back or fade away.

But, come on. How likely is that to happen?