HUD AWARDS AN ADDITIONAL $5 MILLION TO STABILIZE LONG ISLAND NEIGHBORHOODS HARD-HIT BY FORECLOSURE
Third round of NSP grants to build on efforts to confront abandonment and blight

NEW YORK, NY - U.S. Housing and Urban Development Regional Administrator Adolfo Carrión was joined by Rep. Carolyn McCarthy in announcing that Long Island would be receiving an additional $5,047,137 to reverse the
effects of the foreclosure crisis. The grants announced today represent a third round of funding through HUD's Neighborhood Stabilization Program (NSP) and will provide targeted emergency assistance to help local communities acquire, redevelop or demolish foreclosed properties. The announcement today was made at a home in Hempstead Village rehabilitated using NSP funding. The $5 million awarded to Long Island is part of $1 billion awarded nationwide by Secretary Shaun Donovan. (Funding to New York State is at the bottom of the release.)

"These grants will build on local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods," said Donovan. "We wanted to make certain that we targeted these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. This investment will reduce blight, bolster neighboring home values, create jobs and produce affordable housing."

"I commend HUD for their work and for their support of the Neighborhood Stabilization Program. This program is
needed now more than ever to help Long Island's families address the terrible home foreclosure and abandonment crisis," said Congresswoman Carolyn McCarthy. "I have been working to tackle home foreclosures and ensure that housing is affordable for the families in our community. This program goes a long away to help our communities and help families get into homes, at reduced prices. I am committed to working with HUD and doing everything that I
can to help Long Island families get through the current housing crisis."

"The effects of the foreclosure crisis are obvious all around us, blighting our neighborhoods and lowering property values. HUD's program offers an innovative solution: rehabilitate these homes, get middle class families living in
them again, and stabilize surrounding home values of hardworking families." - US Senator Charles E. Schumer

"HUD's primary mission is twofold," said Regional Administrator Adolfo Carrión. "The first is to improve peoples' lives, while the second is to strengthen our neighborhoods. I am delighted that this funding fulfills both objectives."

"These federal funds will help Nassau County acquire, redevelop or demolish foreclosed properties in struggling communities," said Nassau County Executive Edward P. Mangano. "This program will truly help reduce blight, bolster neighboring home values, and create jobs here in our community."

The funding announced today 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. Today, 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 today, 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, and increases in
unemployment, and 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.

NSP 3 Funding to New York State:

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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 www.hud.gov and espanol.hud.gov.