A proposed
organization partnering Inland county and city governments with private
investors to purchase and resell foreclosed homes has drawn the
interest of state housing officials, who were briefed on the plan
Monday.
The Inland Empire Economic Recovery Corp. still
is in development with many questions and no members or budget. But the
potential of the public-private cooperation to provide some stability
and greater local control over the foundering housing market was enough
to bring Dale E. Bonner, secretary of the state business,
transportation and housing agency, to San Bernardino to ask questions.
"Our objective is to be supportive. We are here to understand what you
are trying to do," Bonner said to about two-dozen government leaders,
financiers and other possible stakeholders.
Also
attending the meeting were representatives of the Riverside and San
Bernardino county boards of supervisors, Riverside Mayor Ronald
Loveridge and Corona City Councilman Eugene Montanez.
Paul Biane, chairman of the San Bernardino County Board of Supervisors,
has spearheaded the effort and hosted the meeting.
"This is an effort at restoring and retaining the value of our local real estate," Biane said.
The organization's purpose would be to mitigate the fire sale of the
region's foreclosed homes as the Federal Deposit Insurance Corporation
sells off the assets of failed banks.
Sales of the deeply
discounted homes would further undermine sagging home prices,
property-tax revenue and attract out-of-state or slumlord-type
investors who would fill homes with renters and have little motivation
in maintaining communities, the officials said.
"We want owner-occupied homes, not renter-occupied homes," Biane said.
About 42,356 homes in San Bernardino County are bank-owned, scheduled
for auction or subject to notices of default. Property values have
plummeted nearly 42 percent in the past 11 months, county officials
said.
The recovery corporation would buy homes, make
repairs and sell them to qualified buyers, government officials have
said.
John Field, chief of staff for Riverside County
Supervisor John Tavaglione, said the Riverside County board has not yet
committed to the program.
"I think that Riverside
County's position right now is that we are poised to move ahead with
our own project, but we are very interested in seeing how this program
works in San Bernardino County," he said.
It is unclear how many cities would participate.
Bonner noted that many specifics have yet to be hammered out. He
promised to return in about a month to check on progress.
The FDIC has begun selling homes owned by Pasadena-based IndyMac Bank.
Although the recovery organization has not yet been formed, private
investors plan to bid on a bundle of more than 30 FDIC houses this week
on behalf of the organization, in anticipation of its creation, Biane
said.
On Dec. 1, the San Bernardino County supervisors
approved an intent to contract with the recovery corporation once it is
formed and named supervisors Biane and Brad Mitzelfelt to serve on the
corporation's board.
An item proposing a $2.5 million
contract with the organization is slated to come before the board on
Dec. 16, Biane said.
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