Lee County, FLA - An $18 million federal stimulus program to buy, fix up and resell foreclosed properties in Lee County has only resulted in the purchase of 5 homes so far.

Lee County's Department of Human Services applied for the Neighborhood Stabilization Program through the US Department of Housing and Urban Development in December.

NSP is intended to give lower income people the oppurtunity to become homeowners according to Ann Arnell, Lee County's interim Director of Human Services. Their goal is to purchase, rehab, and sell 115 owner occupied homes, and 50 rental units.

"Our contract wasn't signed until March, then the money came available for us to be reimbursed for our expenditures this July," said Arnell.

Arnell said they are also challenged with lots of regulations when it comes to purchasing homes.

According to Arnell, HUD set guidelines that required agencies using the grant to purchase the homes at 15% below appraised value.

A HUD spokesperson confirmed that those regulations have been changed to now allow places like Lee County to bid at 1% below appraised value.

However, Arnell said they are still being outbid by private investors who are buying up the properties.

Call For Action reporter Melissa Yeager asked Arnell ,"If investors are coming in and buying up these properties, is this program really necessary?"

Arnell said it's necessary because it will allow lower income people to own homes who may not otherwise be able to afford it.

It also gives out of work contractors some work as well. Three of the purchased homes are already refurbished and another is close to complete.

Lee County said they've had 19 people apply for the financing process to purchase a home and expect to have a homeowner close on one of the properties within two to three months.

The cities of Cape Coral and Fort Myers were also approved for federal monies for neighborhood stabilization.

Cape Coral's planning and growth management division said HUD approved them for 7million dollars for a two-fold program: a purchase assistance and a separate rehabilitation plan.

They've bought and sold one property to a low income buyer, but haven't made any purchases yet for rehabilitation.

Fort Myers was approved for a little over $2 million with a goal of purchasing 15 units for purchase, and another 10 for either rental or for individuals making less than 50% of the area median income.

The city has purchased 5 single family homes and 7 rental units so far, and is in the processing of rehabilitating all of them so they are ready for move in within the next few months.