HUD ANNOUNCES $29.7 MILLION RECOVERY ACT NEIGHBORHOOD STABILIZATION GRANT TO CITY OF NEW ORLEANS
Funds will be used to buy foreclosed properties, stabilize neighborhoods, spur economic development

NEW ORLEANS - U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is awarding $29,782,103 in Recovery Act funding to the City of New Orleans under HUD's Neighborhood Stabilization Program (NSP). The competitive NSP grants announced today are part of $2 billion awarded nationwide to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes while creating jobs. A program summary follows.

Funded through the American Recovery and Reinvestment Act of 2009, this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to address the impact the foreclosure crisis
has had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars.

"Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values, blight, and neighborhood decay," said Donovan. "This additional $2 billion in Recovery Act funding will help stabilize hard hit communities by turning vacant homes from eyesores into community assets. The Neighborhood Stabilization program
is a key part of the Obama Administration's comprehensive approach to address the national housing and economic crisis."

The Neighborhood Stabilization Program was created to address the foreclosure crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate foreclosed homes and convert them to affordable housing. Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to rising foreclosures and falling home values.

In addition, on August 26, 2009, HUD awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of foreclosed homes they purchase under the Neighborhood Stabilization Program.

The additional $2 billion in NSP grants being awarded today will build on the work already being done to help State
and local governments and non-profit developers collaborate to acquire land and property; to demolish or
rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to middle-
income homebuyers. Grantees can also create "land banks" to assemble, temporarily manage, and dispose of foreclosed homes.

The Neighborhood Stabilization Program will also help to prevent future foreclosures by requiring housing counseling
for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.

Secretary Donovan and HUD are committed to providing the highest level of transparency possible as Recovery Act funds are spent quickly and efficiently. It is crucial that the American people are fully aware of how their tax dollars are being spent and can hold their federal leaders accountable. Every dollar of Recovery Act funds HUD spends can
be reviewed and tracked at HUD's Recovery Act website. The full text of HUD's funding notices and tracking future performance of these grants is also available at HUD's Recovery Act website.

The City of New Orleans, in a consortium agreement with the New Orleans Redevelopment Authority; Broadmoor Improvement Association; Central City Collective; Make It Right; NENA; Project Home Again; Pontchartrain Park
CDC; Rebuilding Together New Orleans; St. Bernard Project; UNITY of Greater New Orleans with Common Ground Institute; and Volunteers of America, will use its $29,782,103 in NSP2 funds to address targeted areas across 21 census tracts with severe blight and vacancy problems. There are nearly 10,000 unoccupied properties in the targeted area and the Consortium will build upon recovery efforts and continual reinvestment occurring after
Hurricane Katrina.

The Consortium will use awarded funds to demolish 1,370 blighted structures and to purchase and rehabilitate 110 abandoned or foreclosed properties to create affordable rental units for households at or below 50 percent of area median income. The Consortium also will build 795 new units on vacant or demolished properties, land bank 90 foreclosed properties, rehabilitate 305 vacant or demolished properties, and provide homebuyer counseling. All activities will benefit households who are at or below 120 percent of area median income. The Consortium will also leverage $90,024,923 in other funds to help ensure neighborhood stabilization in the targeted areas.

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