Unnatural disaster strikes
Disaster area?
A Florida county that has been particularly hard-hit by the housing crisis is seeking “disaster area” status.
In St. Lucie County, thousands of homes stand vacant or unfinished. A county commissioner believes the crisis has reached disaster proportions. If the county is declared a disaster area, it could receive money from the government’s fund dedicated to providing relief in areas hit by hurricanes and tornadoes.
What constitutes disaster?
Instead of waiting for cash advances from the government, County Commissioner Doug Coward is pushing for the disaster area classification so his county can get some help.
“This is a man-made disaster,” County Commissioner Doug Coward acknowledged. But he said that is why “we’ve got to do something. Clearly, the economic crisis of the country far exceeds the ability of local governments to solve it, but we’re trying be a part of the solution.”
Why make declaration?
Doug Coward
In addition to being eligible for the disaster relief funds, the declaration would let the county sidestep the usual bidding process for construction projects. Then the jobs could go directly to local contractors.
Advocates are hoping that if more locals are put to work, they’ll be able to pay their mortgages and avoid even more foreclosures in the area.
Rise and fall
Port St. Lucie was the fastest growing large city in the United States just five years ago. However, the rapid growth led to a rapid decline.
Affordable housing, open space and a laid-back lifestyle drew residents to Port St. Lucie by the busload. But despite the seemingly low home prices, many people soon realized they couldn’t really afford their homes. They found themselves swept up in the nationwide mortgage crisis.
Hard facts
In St. Lucie County, 10,000 homes were foreclosed last year — more than double the amount of the year before. Unemployment is 10.5 percent, significantly higher than the nation’s 7.9 percent.
Disaster funding – I think a financial disaster qualifies. However, I think that Citigroup and B of A should put up the money as a gift. They got private jets off taxpayer funds, the taxpayers should get something in return.
Despite low home prices, people are afraid to get into a long-term commitment, such as owning a house, especially now with the way the economy is going. The economic system is at a very unstable state and it may be a smart move to wait until the commotion settles down a bit. There were many flaws that were overlooked in the structure of the mortgage industry to begin with. With the help of the current recession, the problems multiplied and have now blown out of proportion.