Georgia’s largest local governments have all agreed to ask for federal money to create governmental house-flipping programs in hopes of propping up values in neighborhoods beset by foreclosures.

In all, Atlanta and Fulton, DeKalb, Gwinnett, Clayton and Cobb counties stand to get about $81 million in federal aid through the Neighborhood Stabilization Program. There’s a total of $153 million headed to Georgia.

The program is part of the federal government’s ongoing efforts to resolve the economic and foreclosure crisis. It allows local governments to buy problem foreclosures, fix them up and then sell or rent the properties to some of the same folks who have lost their homes during the crisis. They can also use it to create special financing to make the properties affordable.

Some governments passed the complex initiative with no public debate. Others, especially DeKalb, put it through considerable scrutiny.

“There are a lot of haints and boogers in the details of this,” said Vernon Jones, CEO of DeKalb. “None of us are comfortable with this. But we have deadlines we have to meet.”

DeKalb commissioners agreed on Tuesday to apply for and accept $18.5 million from the federal Housing and Urban Development Department, which is administering the NSP.

One commissioner, Elaine Boyer voted against taking the federal money. She said the program has so many problems that DeKalb should not participate.

“Just because it’s federal money handed to us, doesn’t mean we should take it,” Boyer said. “We are setting up a system of failure here and not helping neighborhoods. I don’t believe this is something government should be doing.”

About $76 million goes directly to local governments, based on the number of foreclosures in each jurisdiction, with Fulton, Atlanta and DeKalb getting the largest allotments. Another $77 million goes to Georgia’s Department of Community Affairs to divvy up.

Local governments are supposed to apply by Dec. 1. Money should be flowing in February.

Some communities already getting direct grants, like Clayton and DeKalb, are complaining they aren’t being given part of the state’s allotment. On Tuesday night, Clayton County Commission voted unanimously to accept its $9.7 million federal allotment. They also agreed to send a letter to the state demanding Clayton get some of the state’s money from the housing bailout program.

DeKalb issued a similar complaint earlier the same day.

“The federal government gave the money to the state to direct it to the areas of greatest needs,” said Craig Goebel, Clayton’s director of housing and community development. “Last month alone, we had 750 foreclosure filings. It’s had a traumatic impact on neighborhoods in Clayton.”

State officials said Wednesday they doled out the state’s $77 million based on their own formula using the number of bank-owned properties in each jurisdiction as the No. 1 factor. DCA plans to give Atlanta and Fulton an additional $7.9 million to split between them. Gwinnett would get another $3 million. Cobb gets an extra $1.7 million from DCA.

“We’ve done nothing arbitrary here,” said Brian Williamson, assistant director of community development for DCA. “We are being as transparent and open as anyone in the nation.”

Williamson said he understood the complaints, but they won’t change DCA’s funding formula. He said Clayton, DeKalb and others who didn’t get state money could if more federal aid comes later.

The federal government is restricting purchases to bank-owned foreclosures. So, there’s no bailout for anyone facing foreclosure. Governments must pay no more than 85 percent of a current appraisal.

And it will set income limits on who can buy any house the government repairs. No buyers can earn more than 120 percent of the area’s median income, in metro Atlanta about $85,000 for a family of four. Some must be reserved for families living on as little as $35,000 a year. Governments will also be prohibited from making a profit on any flips.

Restrictions aside, HUD gives local governments wide latitude.

They can run the program with their own staff, leaving them to make decisions on what properties to buy and what repairs to make. Or they can use contractors, professional flippers or local housing non-profits.

Also, governments could choose to tackle houses that need complete overhauling or buy only houses that need cosmetic repairs.

A government could target its worst area. Or it could take on a well-established area, blighted by fewer foreclosures, to keep it from falling. Some might go after communities that have already dropped significantly to prevent a free fall.

The program is designed to quickly pump money into communities to combat downward-spiraling real estate values and neighborhood blight from abandoned homes. At the same time, the federal government hopes to create low-cost housing and re-populate run-down areas with many of the same people who are losing their homes to foreclosure.

Normally, such a program might see months of rigorous debate. This time, however, the schedule has been compressed because of the national real estate and foreclosure crisis.

“Eight million dollars is just not something you say no to,” said DeKalb Commissioner Kathie Gannon, “even though there are a lot of questions.”