Clayton County is waging its own fight against the real estate market collapse by offering public safety officers, educators, military personnel and health care workers $20,000 in federal money toward the purchase of foreclosed homes.
The money comes from $9.7 million HUD provided for the county’s Neighborhood Stabilization Program. The county buys foreclosed homes and rehabilitates and sells them to qualified buyers who participate in the program.
Workers in the targeted employment groups get the most financial help -- $20,000 at closing. Other buyers receive help based on income. Buyers who don’t work in the targeted groups receive $5,000 if their income is below 80 percent of Clayton’s median income, for instance.
“We wanted to offer more assistance to make homes more available,” said Mickie Williams, Clayton’s NSP director.
County officials hope the $20,000 inducement will help recruit workers in those targeted groups. The employees must work in Clayton County. Surviving military spouses can also participate.
Foreclosures have wracked Clayton County. A large number of homeowners had subprime mortgages that went bad; the loss of school accreditation drove other families out of the county.
Georgia has had one of the nation's highest foreclosure rates, and Clayton had 974 in the May, according to Williams. The problem is so widespread that every census tract in Clayton qualified based on a HUD formula, she said.
The mortgage assistance program for police officers and other targeted workers kicked off Thursday afternoon at the house Nicole Samples bought in Bridlewood, a large subdivision of two-story homes off Ga. 138 in Riverdale. Samples paid $98,500 and will close June 25.
She’s not a police officer or a teacher but will receive about $5,000 in mortgage assistance, said her real estate agent, Maurice White.
“Ninety-nine percent of the houses I’ve sold in the last two years have been foreclosures,” White said.
The homes are bought and rehabilitated by four asset management teams that contract with the county. Williams said Clayton has purchased 37 homes since March and hopes to buy 65 more. All the houses have sold for $110,000 or less, she said.
The program has about $5.7 million left. Clayton County Commission Chairman Eldrin Bell said the county could obtain more money if it uses up all the NSP money before its September deadline.
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