Douglas County in line for money for neighborhood stabilization

Douglas County is one of 21 Kansas counties that could receive funds to be used to get repossessed homes moving through the real estate market.

The state of Kansas was awarded more than $20 million from the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program for that purpose. The state has allotted $555,862 to Douglas County. The Kansas Department of Commerce and its Community Development Block Grant program will oversee the program.

The Rural Development Association of Northeast Kansas was assigned by the state to work with Douglas and other counties in administering the homes program.

County commissioners have to agree to accept the funds and establish financing mechanisms for purchase and redevelopment of foreclosed homes. During Monday’s county meeting, commissioners expressed interest but made no final decision.

More than 120 homes are owned by banks in Douglas County, most of them in the city of Lawrence, said Virginia Dienstbier, assigned by the state to be RDA grant administrator for Douglas and some other counties.