The Fairfax County Board of Supervisors could take a large step to intervene in the region’s housing crisis next month.

The board intends to vote June 30 on a plan that would assist 100 families in purchasing foreclosed properties in the county. The program would also focus on providing counseling to those who might on the cusp of foreclosure and those who need money to fix up their properties.

Fairfax County has seen a spike in foreclosures which staff said will only get worse. In a four-month period extending from Nov. 30, 2007 to Feb. 15, 2008, the county saw 4,724 foreclosures. During 2005, there were only 198 foreclosures, according to a county report.

The county’s foreclosures are concentrated in Centreville, Herndon, Springfield and the Route 1 corridor and could impact the housing stock and value of entire neighborhoods. Most of those homes foreclosed upon are in the $300,000 to $400,000 price range.

According to studies cited by the county, a foreclosed home impacts the value of all homes within one-eighth of a mile, and can affect as many a 65 adjacent homes. Staff speculates that Fairfax County may have lost $1.12 billion in property value due to foreclosures.

If they proceed with the program, Fairfax County would use approximately $8.7 million in existing funds, including $6.5 million from the county’s affordable housing funding pool, to launch the initiative. Most of the money would be used as leverage to help families purchase homes but the county also plans to purchase up to 10 properties outright.

According to a draft plan of the program, Fairfax would purchase properties that were "abandoned, deteriorated or otherwise considered a blight on the neighborhood." The county would then rehab the properties and sell them to first-time homebuyers and non-profit organizations or rent them through the Fairfax County Rental program.

Staff anticipates the homes, which would be purchased through the Fairfax County Redevelopment and Housing Authority, would about cost $3.2 million in total.

County staff has placed some restrictions on the program. Financial help would be limited to those purchasing a single-family detached home or townhouse and with the purchase price not to exceed $385,000.

Only those living or working in the county and earning less than Fairfax’s median income, approximately $99,000 for a family of four, would be eligible.

The program would initially target the 660 households currently approved and on the county’s first-time homebuyer waiting list and then be opened up to county employees, including those who work for the school system, according to county documents.

Most supervisors seemed receptive to the program but the two Republican members of the board had reservations.

Sully District supervisor Michael Frey (R) said several of the homes that had been foreclosed upon seemed to be in a higher price range than what he would consider affordable. Springfield District supervisor Patrick Herrity (R) added that he didn’t think the county should be purchasing and reselling property.

"I think that is the job of the private sector," Herrity said.