The city of Kenosha is in search of foreclosed homes to repair or rebuild, thanks to the help of $1.7 million in funding.

The City Council approved a contact between the city and the state’s Department of Commerce for a neighborhood stabilization program. The state could award up to $1.73 million to the city as part of this program, which is intended to address the growing number of foreclosed properties as part of the American Recovery and Reinvestment Act through the federal government.

These funds are required to be used to purchase homes in foreclosure or that have been abandoned and rehabilitate or rebuild those properties. Anthony Geliche, a community development specialist for the city, said Kenosha plans on acquiring eight foreclosed properties, rehabilitating six and demolishing and rebuilding two others, with their funding.

“The intent is to rehabilitate them and get them back on the market,” Geliche said.

Properties acquired need to fall in areas of the city with the highest risk of foreclosures. Geliche said those areas are generally parts of the city with older housing stock and with a majority of residents within the low-to-moderate income range. Geliche said he would hope to address homes in or near the city’s current target neighborhoods for rehabilitation, but the availability of properties for purchase will factor into those decisions.

“It will probably hinge more on the opportunities that present themselves,” Geliche said.

Geliche said the city was looking to focus on foreclosed properties because abandoned properties come with some trickier standards in this program. Geliche said the city would also likely shy away from properties that banks have foreclosed on, but people are still living in, which would also help keep relocation costs out of the city’s picture.

The city is required to have all properties under contract for purchase by Aug. 15, 2010 and complete all rehabilitation or reconstruction activities by the end of February of 2013. Geliche said the funds for this program were authorized in February, but the allocation process meant they could not be approved until this time.

“We’re under a tighter frame to get things done,” Geliche said. “It’s an aggressive schedule, but we’ve been tracking foreclosures. Hopefully we will finish our eight by the deadline and we are pretty confident we can accomplish that.”

The city plans on taking a closer look on potential properties to target in the next week or two.

“The sooner we can acquire these properties and get them under control, the better we are,” Geliche said.

If the city does not meet the standards set for this program, the state could reallocate Kenosha’s funding. The city had to apply for this funding, of which $38 million was available throughout the entire state.

The city also plans on using $240,000 in program funds to offer second mortgages for the new owners of these properties. Geliche said that people who purchase these homes are also required to take eight hours of home buyer education.