Auction postponed for HUD homes

PORTSMOUTH, Va. (WAVY) - An auction of three homes which could cost the City of Portsmouth more than $300,000 was postponed by a bank Friday for a month.

The three homes were acquired for renovations by the Center for Community Development, Inc. but the organization fell behind on the mortgage payments and full renovations were not completed.

If the Center for Community Development does not complete the renovation standards given by the Department of Housing and Urban Development and the homes are not sold, the city may have to pay back the $313,000 in federal funds.

"If these projects are not done within the time frame and the requirement of H.U.D. then the city is obligated to return those funds back to the government," Portsmouth Mayor Kenny Wright said.

City officials discussed pushing back the auction deadline Friday morning with BB&T bank.

"They have agreed to postpone the auction today for 30 days," Wright told WAVY.com. "The last thing we wanted to was to have this auction go through."

Wright said he is hopeful the month-long delay will help the city come up with a viable solution.

The homes are located at the following addresses:

• 2231 Elm Avenue
• 2309 Peach Street
• 1029 Ann Street