Federal Foreclosure Rescue Project. Jacksonville Style.

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The Times Union is reporting the following story:

http://jacksonville.com/news/metro/2009-09-22/story/foreclosed_homes_project_takes_back_jacksonville_neighborhoods

The first renovations started this month, just before the halfway point of a $26 million federal infusion designed to breathe life back into foreclosed homes in Jacksonville.

City officials say they have dozens of projects in the pipeline and expect it to be "grease lightning" from here on out.

But others, including U.S. Rep. Corrine Brown, say they are frustrated with the slow movement on the projects and that more of the money should have been put to work by now.

"The way we've set it up does not expedite the process," Brown, a Jacksonville Democrat, said last week.

To qualify for the program, developers and contractors had to send proposals to the city to become an approved vendor, and each project has to be competitively bid. Those steps are necessary to ensure tax dollars are spent wisely, said Wight Greger, director of the city Housing and Neighborhoods Department.

Jacksonville's program is part of $3.9 billion for 300 local and state governments, included in the first government stimulus package passed in 2008.

Across the country, speeds of programs run the gamut. Federal data shows some cities have contracts for all of their allotted money already and some have yet to commit a dime.

Jacksonville has contracts for $6.4 million - about 25 percent of the total grant. The city has until June to commit the money, or it gets sent back to Washington.

"We will meet that deadline," Greger declared.

Brown said it is up to the city to create its own program but wants to make sure it is used now to help get work on the street and help people get into homes.

The federal dollars pay for up to 40 percent of the total acquisition and rehabilitation cost, to give developers the incentive to work on projects they might not try otherwise, Greger said.

Properties have to have a clean title, pass an environmental inspection and have a current appraisal.

Developer Greg Matovina, president of the nonprofit Greater Jacksonville Communities, said he has bid on 10 foreclosed properties. All 10 have been rejected. He said his offers were within 10 percent of the listing price, so cost likely isn't the reason.

Matovina's offers, though, are all contingent on city approvals and his guess is those potential delays are causing the offers to be rejected.

Greger said the city is working to get the banks on board to understand the steps of the program and know that the money will be there, once the approvals are done.

About 40 properties have been rejected for a variety of reasons, ranging from the rehab cost being too high to the developer's offer being turned down by the bank to the property not qualifying because it is new construction.

Work is under way on a house on English Oak Drive South, where the walls are about the only pieces left standing inside. Plans call for energy efficient appliances and low-flow toilets to help keep utility costs down and people in the homes.

The Westside neighborhood near Collins Road was built about five years ago and a handful of bank-owned homes with overgrown lawns are sprinkled among well-kempt properties. In many cases, the goal is to turn over the few problem properties quickly before they become neighborhood fixtures, Greger said.

The program is restricted to five ZIP codes, all on the Westside and Northside.

Kendale Land Development closed this month on the first two houses in the program, and development manager Donna Mountain said it is helping provide work for contractors and others - another offshoot of the initiative.

Mountain had to select three contractors from a list of approved firms to provide bids on the work for each house. She chose the three who asked her the most about the projects and has been happy with the work so far.

Kendale bought the English Oak home for just under $90,000, and contractor Jeffrey E. Schaefer is doing about $30,000 worth of renovations. Schaefer said he hopes to be done in a few weeks. Then, it's time for a buyer.

Houses in the program sell for either the project cost (about $120,000 in this case) or the appraised value - whichever is lower.

The city started promoting the program last month and has received about 1,500 calls from people interested in buying properties, said Amy Rankin, a spokeswoman for the program.

Potential buyers have to complete an eight-hour credit counseling program and down payment assistance is available for people who qualify.

To make a dent in the foreclosures and help neighborhoods, Greger said the city needs a large volume of houses, which she expects to see in a year.

Others, including Brown, will be watching the progress - and the calendar.