HUD Reg. VI -10-8
January 14, 2010
HUD ANNOUNCES $3 MILLION RECOVERY ACT NEIGHBORHOOD STABILIZATION PROGRAM GRANT TO NEW MEXICO
Chicanos Por La Causa, in collaboration with Tierra Del Sol Housing Development Corp and YES Housing Inc., will use grant to stabilize neighborhoods, promote economic development in NM
ALBUQUERQUE - U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is awarding $2,994,932 in Recovery Act funding to New Mexico 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.
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 undertheNeighborhood 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.
Chicanos Por la Causa, in a consortium agreement with Affordable Homes of South Texas, Community Development Corporation of Brownsville, El Paso HOAP, Tierra del Sol Housing Development Corporation, YES Housing, Inc. (both located in Albuquerque), CHISPA, Inc., New Economics for Women, Colorado Rural Housing Development Corporation, Del Norte/Northeast Denver Housing Center, Mi Casa, Inc., Norris Square Civic Association, and The Resurrection Project has been awarded a total of $137,107,133 in NSP2 funds of which $2,994,932 has been allocated to New Mexico. These funds will be used in targeted areas across 332 census tracts in 8 States and the District of
Columbia to address foreclosure and abandonment in the housing market and to create affordable housing for
The Consortium will use the awarded funds to demolish a total of 165 blighted properties, land bank 203 foreclosed homes, and produce 1,998 affordable housing units through the purchase and rehabilitation of foreclosed or abandoned homes, financing mechanisms, and redevelopment of vacant or abandoned properties. These activities
will benefit households whose income is at or below 120 percent of area median income, with 25 percent of the
funds for households at or below 50 percent of area median income. These funds, and the leveraging of $12,012,000 in other funds, will lead to neighborhood stabilization by improving the housing market through the creation of affordable housing in the targeted communities.