The Edwardsville City Council announced plans to purchase foreclosed homes in the area in a move to prevent a further decline in local home prices. Funding will be from the National Recovery Act, but the city operational budget will be used to maintain or improve the homes to be held until market prices increase. Acting Mayor Gaines questioned why only investors should reap the profits from buying and improving property at these low prices when it is taxpayers that have suffered from a drop in their home values because of foreclosures. In a bold move, the city plans to purchase the homes in the name of city employees so that they receive the $8000, or $6500, federal tax rebates from the IRS. The Mayor sees no problem collecting the rebate funds into the city treasury, as city employees are very loyal. Final discussion and approval on the plan is expected by April 1st.
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