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Tuesday, June 09, 2009 11:42 AM

ECKAN, state to help renters into foreclosed Franklin County homes

By JENALEA MYERS, Herald Staff Writer

A high number of foreclosures in the county may mean something positive for a few local families.

The city of Ottawa plans to participate in the Kansas Department of Commerce’s Neighborhood Stabilization Program, which provides grants to purchase foreclosed or abandoned homes and to rehabilitate, resell or redevelop these homes to stabilize neighborhoods and stem the decline of value of neighboring homes.

“It will be possible to help some of our citizens with their housing,” City Manager Richard Nienstedt said.

Because Franklin County ranks in the top 20 of Kansas counties hit the hardest by the recent wave of housing foreclosures, it qualified for funding through the program.

Once the homes are purchased and any repairs completed, East Central Kansas Economic Opportunity Corp. will work to find renters for the home.

The renters must be people with low to moderate income, Richard Jackson, chief executive officer of ECKAN, said. The renters will go through an application process, he said.

The county qualified for $357,163, which will be used to purchase four homes and will cover any needed repairs of the homes or demolition of such surrounding structures as sheds or garages, Wynndee Lee, director of the city’s planning and codes department, said.

That amount could increase if other counties that qualified for funds choose not to participate in the program, she said.

“It will take homes currently empty and vacant and put them back into service and reduce the vacant structures in the city,” she said, adding that it would save on upkeep like mowing of the vacant homes.

The county commission originally worked through the process with ECKAN but decided not to participate in the program. Commissioners expressed concerns about their responsibility of the homes after being purchased and whether the houses would remain on the tax roll.

“I don’t think they understood that they don’t have to do all the work,” Jackson said of commissioners. “We didn’t want to lose the benefit of being able to help people in the community.”

Jenalea Myers can be e-mailed at jmyers@ottawaherald.com.

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