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Loading ...The city of Northfield has launched its foreclosure program by temporarily freezing the development of the 14-acre Spring Creek Commons in the southeast portion of the city to focus its efforts on the rehabilitation of foreclosure homes.
As Northfield foreclosures continue to rise, the city’s finance director Kathleen McBride recommended that the Housing and Redevelopment Authority prioritize its resources to prevent further problems caused by too many foreclosed homes. She also warned against raising funds for infrastructure projects through bonds while the entire country is going through a difficult time.
In response, the HRA accepted the foreclosure solution proposed by Housing Manager Michele Merxbauer. As suggested, HRA will use its federal allotment of $38,000, another allotment of $40,000 and other federal and state funds to acquire and rebuild foreclosed homes.
Just before the month of October, 42 homes in Northfield have been repossessed and sold in an auction. This figure does not consider foreclosures in the Northfield section of Dakota County.
To maximize funds, Merxbauer recommended the purchase of older homes to be repaired with energy-efficient windows and roofs and then to be resold to lower-income buyers.
Nevertheless, the city council still needs to evaluate the allocation of 2009 funds to HRA before the rebuilding plan can be approved and before rebuilding can be started.
Meanwhile, the Minnesota Housing Finance Agency has also been doing its part in helping solve the problem of Minnesota foreclosures. It had released money for the repair of 50 affordable townhomes at Jefferson Square. Each of the townhomes, built in 1980, will receive $50,000 from the finance agency, with the condition that they remain affordable for the next 20 years.
As another incentive, the city of Northfield, Northfield School District and Rice County have agreed not to increase the tax assessment of the townhomes for the next ten years.
