City considers foreclosure grants

One in three foreclosed homes in the Indianapolis-Carmel metro area sat abandoned last year, more than anywhere else in the country, according to data gathered from realty analytics firm RealtyTrac.

In Gary, a program announced in June worked to relieve the city’s expanding blight crisis by selling abandoned properties for a dollar each.

RealtyTrac data indicates the statewide rate of foreclosures is on par with the national average. However,  abandonment of those homes in certain regions is so bad that the state reallocated $75 million from a foreclosure avoidance program to one dedicated to mopping up the effects of foreclosure — the Blight Elimination Program.

The program allows local governments to apply for funds to supplement the high cost of demolition.

Bloomington’s situation is not as severe as Gary’s or Indianapolis’, but local government is discussing this week whether to submit an application for program funds, said Lisa Abbott, director of the Housing and Neighborhood Development Department.

“We’re looking at whether or not we think we can submit a competitive grant application,” Abbott said. “We’re up against counties that have more housing issues than we do.”
 
A number of factors play into the decision, most of them demographic, she said.

HAND looks at the type of housing, locations, how scattered they are and whether they can be fixed before making a decision on demolition.

“We didn’t have the huge foreclosure that other communities have, so we didn’t have a lot of foreclosed abandoned properties,” Abbott said. “We have a few — Indianapolis has complete blocks.”

Abbott said HAND’s efforts to monitor properties in question drives down the risk of abandonment or blight.

“We have some scattered, abandoned properties, most of which are on our watch list, and we’re usually pretty good about making sure they’re sealed up,” Abbot said. “We drive by periodically to make sure. You know, it’s not a lot.”

Abbott said out of a community of 35,000 housing units, Bloomington saw only 28 unsafe orders last year, registered for homes that required sealing, repair or removal — some of them due to fires.

“To compare, Indy removed 2,000 structures,” Abbott said.
HAND plans to decide next week on whether to apply for state Blight Elimination Program funds, Abbott said.

Follow reporter Steven Johnson on Twitter @stetyjohn.