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By Pete Stidman
News Editor
The city's Foreclosure Intervention Team is
taking the neighborhood-saving techniques it honed
on Hendry Street to new areas in Dorchester and
Roxbury, and brainstorming new ones as they go
along.
On the drawing board for a new "hot spot" of
foreclosed properties around Quincy and Dacia
streets in Dot and a second one around Langdon and
Clarence streets near St. Patrick's Church in
Roxbury - is a streamlined process for choosing
contractors to rehabilitate them, said Department
of Neighborhood Development (DND) director Evelyn
Friedman last week. Full details have not been
hammered out yet, but the idea is that the city
would qualify contractors beforehand to
rehabilitate the properties the city acquires,
instead of letting them bid on individual
properties as was done on Hendry Street with four
properties acquired there.
The condo-renovator for 19-21 Hendry Street and
three other buildings has not been chosen yet, and
the buildings are still sitting empty after being
acquired months ago.
Another strategy on tap will take advantage of a
$20 million privately-funded stabilization fund put
together by Gov. Deval Patrick's administration.
The fund will be used to give loans to those who
want to renovate and re-sell foreclosed homes.
"One of the issues the banks have had is they're
afraid there wouldn't be a buyer so they don't want
to give you a construction loan," said Friedman.
The fund is due to come on line in the next
month or two.
Friedman and her DND team are also pushing banks
in the area to consider giving loans that would
allow new homeowners to rehab properties
themselves.
"You'd buy a property for $100,000 and get
another $50,000 for rehab," she said. "Banks don't
like to do that because they're not used to
monitoring construction."
There is also an existing Federal Housing
Administration loan program called the 203(k) Rehab
Program that could, with falling housing prices and
a bump on the program's mortgage ceiling, become
viable in urban Boston again, she said.
As of Tuesday, there were 905 foreclosures
recorded on Suffolk Deeds so far this year, but
according to DND, close to a third are being
acquired, which is an increase over what the city
saw last year.
"Just anecdotally we know some are being bought
by speculators," said Friedman. "But we don't know
how many."
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