Long Island Rehabs Government Repo Houses for Families

Lower-income residents of Suffolk County on Long Island will be given the chance to own affordable homes under Suffolk County’s program of buying and fixing government repo homes and bank-owned foreclosed houses.

The program will be funded by a total of $13.8 million provided by federal and state agencies. The federal Housing and Urban Development Department’s Neighborhood Stabilization Program provided $5,681,443; the New York State Housing Finance Agency gave $6,930,349; and the New York State Affordable Housing Corporation gave $1.24 million.

Household income will be the key qualifying factor for families, with four-member families required to be earning not more than $122,000. Families also need to pass mortgage loan application requirements.

Under Suffolk’s affordable housing program, applicants are given up to July 31 to submit their applications. Qualified families would be chosen through lottery and buyers would choose from rehabilitated bank-owned foreclosures and government repo houses in neighborhoods most affected by foreclosures.

Applications would be handled by the nonprofit Long Island Housing Partnership, which is expected to launch its online application channel within two weeks. Families interested in the program can call the partnership at 631-435-4710.

Among areas with potential government repo and bank-owned properties are Selden, Centereach, Central Islip, East Patchoguen, Coram, Bay Shore, Huntington Station, Brentwood, Mastic, Medford, Mastic Beach, North Bellport, Shirley and North Amityville.

For a period of three years, Suffolk would buy bank-owned homes and government repo houses in these areas, fix them and then sell them between $150,000 and $225,000.

Qualified homebuyers will be required to take an eight-hour session on mortgage and home ownership counseling conducted by Long Island Housing Partnership. After a foreclosure property is renovated, the house will be offered for sale to the first on the program list.

County Executive Steve Levy said the NSP and state funds will enable the program to save neighborhoods filled with many government repo and bank-owned foreclosures by preserving home values and controlling the decline of tax revenues.

Mark Lesko, town supervisor of Brookhaven, also lauded the program, saying it is a realistic kind of assistance in difficult times. The program will not only help families, it will also help communities survive the housing crisis and economic downturn.

All in all, the program to buy, fix and sell bank foreclosed homes and government repo houses will be handled under a multiagency effort, involving government and nonprofit officials.

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