Lake County spending $5.7 million to rehab and resell vacant, foreclosed homes

By Bill Dolan, Times of Northwest Indiana
bill.dolan@nwi.com

CROWN POINT | Lake County officials plan to use $5.7 million in federal stimulus money to rehabilitate suburban houses left vacant by the current mortgage epidemic.

Eugene Krasoczka, chief deputy of the county's Economic Development department, said Tuesday he hopes this summer to begin acquiring what will eventually be dozens of homes now languishing on the market and making them available to families with limited income.

"If we buy a house in June, maybe we can sell it before the kids go to school," Krasoczka said.

He announced the award of a U.S. Housing and Urban Development Neighborhood Stabilization Grant on Tuesday at a meeting of the County Council, which created a fund for deposit of the federal money.

Krasoczka said his acquisitions will focus on foreclosed homes in Crown Point, Highland, Hobart, Lake Station and Merrillville. He said the cities of Gary, Hammond and East Chicago have their own separate grants and programs.

He said his department will sell the homes at affordable prices, and use the revenue to purchase more vacant homes to fix.

He said the program is intended to encourage home ownership, rather than renters. "If anyone thinks they can buy it and rent it out, we'll stop the deal real quick."

Krasoczka said his office will announce later this year when families can apply for the homes. Financial qualifications will be on a sliding scale depending on the family's income and size, he said.