Repo Property Mitigation in Memphis on Track

City officials of Memphis have identified ten zip codes where they plan to spend the $11.5 million funding the city received from the first funding round of the federal repo property mitigation program.

The zip codes covered are in the neighborhoods of Frayser, Westwood, Raleigh, Oakhaven-Parkway Village, Elvis Presley-West Person, Hickory Hill South, Hickory Hill North, Defense Depot, Whitehaven and University of Memphis.

Repo property units in these ten zip codes will be purchased, fixed and resold by the city to lower-income families, including moderate- or middle-income families.

The Neighborhood Stabilization Program of the Housing and Urban Development Department allocated over $3 billion to state governments and local government units to help them contain repo property inventories and prevent neighborhoods from deteriorating into places of blight and crime.

Memphis has also started looking for appraisers who will assess single-family and multi-family repo property units in the ten zip codes.

The $11.5 million received by Memphis came from the $27 million allocated to the county of Shelby. Nearly $12.7 million was given to the county unit of the Tennessee Housing Development Agency and the rest remained with the Shelby County for its own neighborhood development initiatives.

Several local nonprofit housing agencies in the city will also share in the NSP funding given to the state of Tennessee. Among these agencies are Frayser Community Development Corp., North Memphis Community Development Corp., United Housing Inc. and Cooper-Young Development Corp.

Under the second round of NSP funding, which has nearly $2 billion to distribute, Memphis is applying for $64 million in funding to step up its efforts in turning repo property units across the city into sustainable affordable homes for lower-income families.

United Housing has also teamed up with other neighborhood associations in Nashville and Jackson in Tennessee and in Knoxville and Berea in Kentucky to create the Tennessee Neighborhood Stabilization Program II Consortium to increase the chances of foreclosure-hit places in the region in getting NSP funds. The consortium is applying for $20 million in funding for use across Tennessee, with special focus in the counties of Davidson, Knox and Madison.

Meanwhile, the repo property mitigation proposal of Memphis in its application for the NSP second-round funding focuses on the redevelopment of Legends Park, where the city’s first government housing projects are located, and the rehabilitation of repo property units around University Place and Hickory Hill.

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