GOVERNMENT

The federal government is allowing Indiana to use $75 million in foreclosure-prevention funds to instead tear down abandoned houses, and Indianapolis officials are chasing a large chunk of the money.

The Department of Metropolitan Development has until March 17 to apply for a share of $16 million that’s available for Lake and Marion counties. Spokesman John Bartholomew said DMD wants to hear from the public about which properties to target, and what to do with them. The Indiana Housing and Community Development Authority will score the applications based on proposed end uses, which may include green space and redevelopment.

“The goal is not simply to demolish abandoned homes, but to stabilize property values in Indiana communities,” the IHCDA states.

The IHCDA, overseen by Lt. Gov. Sue Ellspermann, says it will still use the federal Hardest Hit Fund to help struggling homeowners keep their homes. As of Dec. 31, more than 2,700 homeowners had received $29.5 million in mortgage-payment assistance. Another $63 million is set aside to help homeowners currently enrolled in the program.

Foreclosure is a significant factor in the number of abandoned homes here. The IHCDA cites RealtyTrac data, which points to Indiana as the state with the highest portion of abandoned foreclosed homes, 30 percent. That means about 5,000 houses have been abandoned because of foreclosure, the IHCDA says.