LOUISVILLE - HUD Field Office Director Krista Mills was joined by Congressman John Yarmuth (KY-3) and Mayor Jerry Abramson as she presented a check for $6,973,721 from HUD Secretary Shaun Donovan to the Louisville-Jefferson County Metro Government at 500 Camp Street near Shelby Park. These funds were awarded by the Obama administration under HUD's new Neighborhood Stabilization Program (NSP). These funds will be used to target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight.

"We crafted the Recovery Act to stem the ripple effect of foreclosures drives down property values and seriously hampers our local economy," Congressman Yarmuth said. "I am very pleased that our local leadership will invest this funding in targeted projects that will help lift Louisville out of this recession."

"We plan to use the $7 million in federal money to help purchase about 100 homes that have been foreclosed upon," said Mayor Abramson, "This money will make a real difference in the five Louisville neighborhoods that our advisory committee has targeted for revitalization…the areas around Park DuValle, Shawnee, Newburg, Portland and right
here in Shelby Park."

HUD's Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides nearly $4 billion to every State and certain local communities experiencing particularly high foreclosure problems and risk of property abandonment. The program permits these State and local governments to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.

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.

The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Agency 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.