The city of Las Vegas has proposed a plan allocating $20.7 million in housing funds to help get people into an estimated 298 foreclosed properties. Granted, that is a drop in the bucket for Las Vegas which has one of the highest foreclosure rates in the country.  How much will it really help? I guess that depends if you are one of the lucky few that will qualify to participate. There is a sunny side. The funding is coming from Las Vegas’ share of the Neighborhood Stabilization Program to help redevelop and repopulate foreclosed homes. Not everyone is a fan of the program.

Not only does it not go far, but it really doesn’t address the vital issue of helping people who are going into foreclosure,” said Las Vegas Mayor Oscar Goodman.

Mayor Goodman makes a very good point. It doesn’t address those people that are facing foreclosure. Basically the plan is threefold. It will provide financial assistance to those qualifying individuals to buy a home. The plan will back a lease to own program for people that can’t get a mortgage (the homes for lease will be foreclosures, 27 homes is the current goal). And lastly, the city will buy homes in targeted nine ZIP codes where foreclosures and pre-foreclosures are the highest at a price 15 percent below the current appraised values, operating them as low-income rental housing in the city’s affordable housing pool for 15 years.

While not thrilled with the plan, Mayor Goodman isn’t looking a gift horse in the mouth. Reducing the amount of foreclosed properties and providing affordable housing can only help the market. But I can’t help but think that the money could be better spent. What are your thoughts?