WAILUKU, Maui — In a reversal of fortunes, Maui residents in need of affordable homes could buy about a dozen foreclosed residences next year under a program managed locally by Na Hale O Maui, a community land trust working to develop affordable housing.

The federal Housing and Economic Recovery Act, signed in July by President Bush, provides $3.92 billion nationally in emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become abandoned or decrepit.

The state Housing Finance and Development Corp. expects to receive $19.6 million under the act's Neighborhood Stabilization Program. According to a published notice, the proposed allocation would be: $3 million to Maui County, $5.5 million to Honolulu, $4.9 million to the Big Island and $4.3 million to Kaua'i County.

Under the program in Maui County, Na Hale O Maui would acquire abandoned and foreclosed homes in north Wailuku-Waiehu, Dream City and Maui Lani in Kahului, north Kihei and in Lahaina.

The organization expects to provide about 37 families with housing in four years.

Na Hale would provide long-term stewardship of the rehabilitated affordable homes by holding title to the underlying land in a community land trust and providing the homeowner with a renewable 99-year ground lease, the notice says.

John Andersen, executive director of Na Hale O Maui, said his nonprofit has been designated to receive $3 million under the program, and confirmation of that is expected this week.

The program aims to prevent a rising number of foreclosures from harming neighborhoods by leaving them with vacant, vandalized or boarded-up homes, Andersen said.

The program "has a lot of potential," he said. "It comes at a time when the foreclosure rate (on Maui) is going up rapidly. We're seeing it just in time to mitigate the impact of foreclosures on our neighborhoods."

Andersen will make a presentation on the program during a Housing for the Local Person quarterly meeting from 11 a.m. to 12:30 p.m. Tuesday at Door of Faith Church in Wailuku.

In preparing foreclosure data on Maui, Andersen said he has been tracking foreclosures on Maui since July. In September, the month with the most recent complete data, Maui had 186 active foreclosures, he said.

In the period from January through September, Maui's share of foreclosures in the state was 16 percent, but in September only, the Valley Isle's share was 21 percent, Andersen said.

"Maui's foreclosures are increasing faster than the state as a whole," he said.

Hawai'i's foreclosures are not running as rampant as in California, where mortgage lenders floated more subprime loans to home buyers, he said. But, in Hawai'i, "we're running about two years behind the Mainland in this cycle. ... We're just beginning to see a wave of foreclosures."

Andersen said it's "too early to tell" how widespread the problem may get on Maui.

But he said that because there were fewer subprime loans here, "the problem is not going as deep here as it has on some areas of the Mainland."

Andersen said he identified foreclosure "hot spots" north of the Wailuku Post Office in Wailuku and Waiehu, in Kahului and Maui Lani, in Kihei north of Lipoa Street, and in areas of Lahaina.

Andersen said his nonprofit can use the money over four years and plans to spend it in phases and as a revolving fund, replenishing funds as home buyers purchase foreclosed homes.

Buyers would be people from households earning 120 percent or below of the median income of $72,600. The first phase of foreclosed homes to be refurbished and made available for sale is expected to include 12 to 13 residences in working-family neighborhoods, Andersen said.

Money for the program is expected to be available by the end of January.