Money will be used for down-payment program

To help dispose of hundreds of foreclosed homes in Fayette County, county officials will receive $1.18 million in federal funds that will be used to offer down-payment assistance to purchasers.

While other jurisdictions plan to buy up distressed properties for later sale, Fayette can’t feasibly do that because of the high value of its homes, county officials have said previously.

The program funds can be used only for homes that have been foreclosed, and not for homes currently on the market, officials have said.

The funds are coming from the federal Neighborhood Stabilization Program, and of the $1.18 million about $70,000 can be used for administrative costs of the program. No matching funds are required.

Last week the Fayette County Commission formally adopted a resolution to accept the grant. When the commission first considered it in January, 777 homes in Fayette County were identified as foreclosed properties.

The down-payment assistance program has been endorsed by leaders of Fayette’s municipalities, officials have said. Local bankers also have said there is a need for such a program, County Administrator Jack Krakeel previously told the commission. The program will take “considerable” time from county staff but should be worthwhile, Krakeel added.

“I think it could be a valuable instrument to help us move foreclosed properties in Fayette County,” Krakeel told the commission in January.

The funds are being distributed through the Georgia Department of Community Affairs.