(KMOV) – St. Louis will soon receive federal funds to help reverse the effects of the foreclosure crisis.
More than $6 million is coming to St. Louis as part of a billion dollar government plan.
St. Louis County will distribute funds to local developers to acquire and rehab foreclosed homes in neighborhoods with a high concentration of foreclosures. Foreclosed properties can drive down the value of neighboring homes by at least $5,000.
Chris Krehmeyer of Beyond Housing shares an example of homes that his organization turned around using the first round of federal dollars.
"Not only do we get the houses re-occupied, but we stabilize this block, so then hopefully two vacant properties don't cause a negative impact on the rest of that block," says Krehmeyer.
But with record foreclosures expected in the county for 2010, he adds the dollars will only go so far.
"It does a lot for this one block. The problem is there are lots of blocks in St. Louis County and not enough resources to go around," he says.
In 2009, the there were 3,200 foreclosures in St. Louis County. That number is expected to jump to 4,000 in 2010.
The federal funds will be available October 1.
