Fairfax County In Virginia Buys Foreclosed Properties For Mid-Income Families
July 1, 2008 2:46 p.m. EST

Vittorio Hernandez - AHN News Writer
Fairfax, VA (AHN) - Despite a $220 million deficit for the fiscal year, Fairfax County in Virginia is going beyond counseling in addressing the housing crisis besetting the nation. The country allocated $10 million from tax revenues to purchase up to 200 foreclosed homes for mid-income families.

At the onset, 10 houses will be bought by the country, and the 190 would be purchased by qualified buyers through government-backed, low-interest loans. The bulk of the financial assistance would be extended to first-time home buyers earning up to $75,600 a year or 80 percent of the median income in the county. A $385,000 cap would be placed on home purchases, which excludes condominium units.

The man behind the idea is Gerald Connolly, chairman of the Board of Supervisors of the county. "Fairfax, like the rest of the country, is facing a foreclosure crisis that's unprecedented... The county has to use its resources and influence to try to stem the tide," Connolly said, quoted by the Washington Post.

The program, however, was questioned by some of his colleagues. Supervisors Pat Herrity and Michael Frey rejected the program because they believed the market could manage the mortgage crisis by attracting private homebuyers to the foreclosed properties. Supervisor John Foust suggested helping Fairfax families about to lose their units instead of providing financing for the purchase of homes already lost.

Connolly insisted the program could solve the housing problem in the county and even serve as a model for the rest of the U.S. He plans to extend the program further if Congress passes the mortgage relief bill.

http://www.allheadlinenews.com/articles/7011472369