Lots of money, too many rules?

NEW PORT RICHEY - Nearly $20 million can go a long way to helping ease Pasco County's foreclosure crisis – at least, that was what many hoped when the money arrived late last year.

Residents near a foreclosed home on Lake Chrisie Lane are among those the money is supposed to help. The house has been vacant for two years, and is deteriorating.

"You always have a worry about what might be over there," said Pam Stepien, who lives next door. "I have small kids and you never know if someone is camping out over there."

Pasco County plans to fix the house through the Neighborhood Stabilization Program. The NSP is funded through a Department of Housing and Urban Development grant of $19.5 million awarded to the county late last year.

"The idea is for local governments to help individuals and agencies to buy foreclosed property, abandoned properties and put homeowners in them," according to George Romagnoli from Pasco County Community Development.

Although Pasco got one of the bigger federal stimulus grants designed to fix up abandoned houses and the county has been among the most aggressive in the state, the program still has plenty of money available.

Why?

Realtors complain HUD continues changing the rules as to which of those homes are eligible to be fixed. For example, Greg Armstrong, with Coldwell Banker F.I. Grey, complains HUD allowed homes with repaired sink holes to qualify for NSP. Then HUD changed its mind.

"It's hard for realtors to be able to find properties because they get frustrated, the buyers get frustrated, they all throw up their hands and buy something else," Armstrong said.

When HUD awarded the money, it asked Pasco County to distribute it all within 189 months. That was late last year. Romagnoli, who must deal with the constant changes, said HUD is a good agency trying to do good work and the county will continue to follow the ever-changing rules.

"Part of the problem is real estate is a fast-moving industry, and every little rule, every new paper that you have to sign, it delays things, that's my concern," Romagnoli said.

By some estimates, Pasco County has up to 10,000 foreclosed homes. Residents like Pam Stepien look forward to seeing those numbers go down – especially next door.

"It would be nice to maybe have a family move in with other kids," she said.