Fixing Phoenix Repossession Properties Helps School District

A nonprofit in Phoenix called Neighborhood Housing Services of Phoenix cares so much about the Washington School District that it is working with the city and the school district to help fix and resell repossession properties in the areas covered by zip code 85304 so that the school district would not lose its funding.

If repossession properties are abandoned by families, population in the area declines, cutting down student enrollment. If student numbers fall, school funding also falls.

Thomas Wilson III, an officer of Neighborhood Housing Services who has been partnering with HUD for 39 years, said that school districts which fail to reach certain enrollment levels lose title one funding and other federal and state funds.

Wilson further explained that the loss of some significant educational funds can extend its negative impact even to the housing market. He said that deficient school funds can cause the layoff of teachers and other school staff who are paying mortgage loans. If they lose their jobs, they will also lose their houses to foreclosure.

Wilson said that the nonprofit, the school district and the city will partner to use the $39.4 million received by Phoenix from the federal Neighborhood Stabilization Program to buy many of the repossession properties around zip code 85304 and then help families buy them and occupy them.

Since the NSP funding has a time limit of 18 months, the three-entity partnership needs to double their efforts to spend the NSP funding well.

Wilson explained that the partnership will conduct mass meetings to inform people about the NSP funds and how they can be helped to become responsible homeowners.

With the NSP funds, what prospective buyers need to come up with are just a minimal amount for home equity and their eligibility documents. The partnership will take care of part of the down payment, the closing costs and other home ownership costs. They just need to participate in counseling and educational sessions that will make them successful homeowners.

Aside from sustaining the state and federal funding of Washington School District, the NSP rehabilitation program will also help prevent blight, vandalism and other crimes that usually arise when repossession properties are abandoned and allowed to deteriorate.

Prospective home buyers who are looking for a school and a community that care can consider looking at repossession properties in Phoenix’s Washington School District area.

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