City Rebuilds After Surge of Foreclosed Properties at Bank Auctions

The city of Euclid, in Ohio, just like majority of cities and counties in the U.S., has also been affected by the surge of foreclosed bank auctions. The local government, led by Mayor Bill Cervenik, is now focusing on revitalizing communities through various construction and job creation programs.

The number of foreclosed homes in Cleveland and in the rest of the state might not be as high as in other regions of the country, but the area is also feeling the double impact of the housing crisis and the high unemployment levels. In Euclid, efforts to renovate the city have already started last year when rehabilitation projects worth around $7 million were started. The area also spent a little over $2 million in rebuilding streets and replacing waterline systems.

While foreclosure listings in Ohio remain a concern, local officials are hopeful that the city's multi-approach rehabilitation initiative will speed up Euclid's recovery. Cervenik has revealed in his City Address that they will be focusing first on prevention and then rehabilitation to address the foreclosure problem of the area. Euclid is set to be appropriated $1 million through the federal Neighborhood Stabilization Program's third round of financing.

As of the start of 2011, renovation projects worth an estimated $15 million are already under way in the city. Meanwhile, local businesses have also contributed to efforts of helping the city recover from the impact of foreclosure bank auctions and distressed properties. Two of the firms that are expected to add more jobs to the area are Intergroup International and University Hospitals.

The city administration is also trying to get new companies to build units or expand in the area, particularly those in the wind energy industry, by building more wind turbines. Several development projects meant to revitalize neighborhoods suffering from considerable supplies of home foreclosures for sale are also being planned, including a lakefront development project that will be financed by grants worth around $600,000.

The presence of foreclosed properties at bank auctions in the city has also affected commercial and industrial structures, and programs are now ongoing to renovate some of Euclid's buildings. Officials are optimistic that the multiple projects will improve the real estate and economic conditions of the city.