HUD Archives: News Releases

HUD No. 10.9.9
Jerrie G. Magruder
(407) 608-7517
For Release
September 9, 2010

HUD Deputy Secretary Ron Sims alongside Congresswoman Kathy Castor
and Tampa Mayor Pam Iorio announces that the Obama administration awarded $208,437,144 to the State of Florida

TAMPA - U.S. Department of Housing and Urban Development (HUD) Deputy Secretary Ron Sims was joined today
by Congresswoman Kathy Castor and Tampa Mayor Pam Iorio at a foreclosed home purchased by Tampa Crossroads Inc., that will be transformed into Eco-Oaks apartment complex that will provide housing for female veterans and
their families. This project was funded through HUD's Neighborhood Stabilization Program. Deputy Secretary Ron
Sims announced that U.S. Housing and Urban Development Secretary Shaun Donovan awarded an additional $208,437,144 in funding to Florida communities struggling to reverse the effects of the foreclosure crisis. The City
of Tampa will receive $4,691,857. For a list of funding for West Florida areas, see the highlighted chart below. The grants announced represent a third round of funding through HUD's Neighborhood Stabilization Program (NSP) and
will provide targeted emergency assistance to help local communities in Florida acquire, redevelop, or demolish foreclosed properties. For more info, go to the NSP website (

"These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods," said Sims. "We want to make certain that we target these funds to those places with especially
high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. As a direct
result of the leadership provided by Senator Chris Dodd and Congressman Barney Frank, who played key roles in winning approval for these funds, we will be able to make investments that will reduce blight, bolster neighboring
home values, create jobs, and produce affordable housing."

"I look forward to seeing the benefits of this third round of Neighborhood Stabilization initiative money, especially
the hundreds of jobs created in our community as a result - jobs in sectors ranging from architecture to
construction to engineering," said U.S. Rep. Kathy Castor of Tampa (FL-11). "While we are creating jobs, we are
also providing housing to hard-working families, including military veterans who sacrificed so much for our country.
Our community was unfortunately hard hit by the housing foreclosure crisis. The neighborhood stabilization initiative already has helped some of the struggling neighborhoods in our city regain their footing, and is also helping revitalize our Central Park Village community by turning it into the beautiful Encore development."

Tampa Mayor Pam Iorio added, "With the resources provided by NSP3 the City of Tampa is looking forward to expanding our partnerships with contractors, developers and not-for-profit organizations in order to redevelop abandoned properties in our community, creating new homes for our residents. We also look forward to the jobs
that will be created as the renovation work gets underway."

The funding is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there
have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided
$3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act)appropriated an additional
$2 billion. Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes
at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values, 92 cents of every dollar from the first round of NSP funding is obligated - and is in use by communities, buying up
and renovating homes, and creating jobs.

State and local governments can use their neighborhood stabilization grants to acquire land and property; to
demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low-
to moderate-income homebuyers (household incomes not exceed 120 percent of area median income). In addition, these grantees can create "land banks" to assemble, temporarily manage, and dispose of vacant land for the
purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.

NSP 3 will take full advantage of the historic First Look partnership Secretary Donovan announced with the National Community Stabilization Trust last week. First Look gives NSP grantees an exclusive 12-14 day window to evaluate and bid on properties before others can do so. By giving every NSP grantee the first crack at buying foreclosed and abandoned properties in these targeted neighborhoods, First Look will maximize the impact of NSP dollars in the hardest-hit neighborhoods - making it more likely the properties communities want to buy are strategically chosen
and cutting in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties.

NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. HUD seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under NSP receive homeownership counseling and obtain a mortgage loan from a lender who agrees
to comply with sound lending practices.

In determining the allocations announced, HUD, as it did with NSP1, followed key indicators for the distribution
formula outlined by Congress. HUD is using the latest data to implement the Congressional formula. The formula
weighs several factors to match funding to need in the 20 percent most distressed neighborhoods as determined based on the number and percentage of home foreclosures, the number and percentage of homes financed by a subprime mortgage related loan, and the number and percentage of homes in delinquency. To estimate the level of need down to the neighborhood level, HUD uses a model that takes into account causes of foreclosures and delinquencies, which include housing price declines from peak levels, increases in unemployment, and the rate of
high cost and highly leveraged loans. HUD also considers vacancy problems in neighborhoods with severe
foreclosure related problems.

In addition to a third round of NSP funding, the Dodd-Frank Wall Street Reform and Consumer Protection Act
creates a $1 billion Emergency Homeowners Loan Program to be administered by HUD. This loan program will provide up to 24 months in mortgage assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition. HUD
will announce additional details, including the targeted areas and other program specifics when the program is
officially launched in the coming weeks.


HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at and


Content Archived: May 16, 2012