The U.S. Department of Housing and Urban Development (HUD) recently presented Colorado Governor Bill Ritter with a check for $34,013,566 for Neighborhood Stabilization Program funds to help Colorado communities recover from the effects of high foreclosures and declining home values. The funds will allow local governments and non-profits organizations to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. HUD's Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides a total of nearly $4 billion to States and certain local communities experiencing particularly high foreclosure problems and risk of property abandonment.

Colorado Governor Bill Ritter

"Foreclosed and abandoned properties are often targets for vandalism and other types of criminal activity," said Gov. Ritter. "Having these HUD funds available to help distressed communities is important to keeping these communities stable and safe for the long-term."

According to the Colorado Department of Local Affairs' Division of Housing, there were 25,320 completed foreclosures during 2007, and the Division estimates there will be approximately 22,000 completed foreclosures during 2008. Adams, Denver, Weld, Arapahoe, and Pueblo Counties have experienced some of the highest foreclosure rates in Colorado in recent years.

The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Department seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices.