Source: William Heisel, Los Angeles Times ( Free Registration )

To Congress, it looked like a way to both ease blight and provide affordable housing: give local governments $4 billion to buy, repair and resell homes lost to foreclosure.

But the program—included in the landmark housing bill signed by President Bush last month—faces growing doubts among real estate experts and economists, who point out that the government will now be competing with lenders and private homeowners who have been struggling to sell in a depressed market.

What’s more, an analysis by The Times shows that the California communities with the most foreclosures—and therefore likely first in line for federal aid—already have a relatively ample supply of affordable housing.

Read Full Article: Federal foreclosure program may fall flat in CA