Suffolk County Executive Steve Levy Sunday announced the county has obtained a federal grant to help first-time homeowners purchase renovated houses that have been abandoned or are in foreclosure.
He announced the county just secured $11 million from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program to acquire and redevelop the properties.
“This program will allow us to restore blighted homes, help stabilize neighborhoods and provide opportunities for first-time home buyers,” said Levy, at a housing seminar hosted by the Central Islip Civic Council at Touro Law school Sunday.
“It’s money that’s being sprinkled around to all the local governments nationwide,” he said.
Levy also talked about county resources for those in danger of losing their home. He cited the county’s down-payment assistance program, homeownership counseling and efforts to increase workforce housing.
Levy said the HUD money will be used to buy homes from banks at about 75 percent of the appraised value, renovate and then “flip” them to up-and-coming home buyers.
The funds, part of the federal government’s Housing and Recovery Act of 2008, will be divided in three ways: $5,681,443 will be split among the county, seven towns and 10 villages. The towns of Babylon and Islip will also receive an additional $2,170,909 and $3,720,392, respectively.
Levy said potential home sites include those in Mastic, Mastic Beach, Shirley, East Patchogue, Selden, Centereach, Coram, and Medford.
Babylon’s funds are earmarked for purchases in Wyandanch and North Amityville. Islip may acquire sites in Central Islip, Brentwood and Bay Shore.
The county has also partnered with the towns of Islip, Babylon, Huntington and Brookhaven, to get $6.7 million of state Neighborhood Stabilization Program funds.
Nassau County was approved to receive $7.7 million from the federal Neighborhood Stabilization Program.
Nancy Manfredonia, executive director of the Central Islip Civic Council, said the programs are essential, but it’s important that people understand what they are getting into when they buy a home.
“Buying a home is a process and people need to understand there are places where they can go to get free, private, help and answers,” Manfredonia said.