HUD Archives: News Releases


HUD No. 09-025
Brian Sullivan
(202) 708-0685
For Release
Thursday
March 19, 2009

HUD APPROVES $731 MILLION IN NEIGHBORHOOD STABILIZATION FUNDING FOR 48 STATES AND LOCAL COMMUNITIES
Funding aimed at neighborhoods hard-hit by foreclosure

WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today approved nearly $731 million in funding for 48 States and local communities seeking to recover from the effects of high foreclosures and declining home values. Funded under HUD's Neighborhood Stabilization Program (NSP),these plans will target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight (see attached chart).

The neighborhood stabilization plans approved today include a $145 million plan submitted by the State of California, a program President Barack Obama recognized during a town hall meeting today in Los Angeles.

"These funds will be used to buy up and rehabilitate vacant foreclosed homes and resell those homes with affordable mortgages," said President Obama. "They'll allow California to provide mortgage assistance and rehabilitation loans for both low-income and middle-income families. This is how we'll help people here in California live their dream of homeownership and how we'll start transforming abandoned streets lines with vacant houses into thriving neighborhoods."

"Our goal is to help communities throughout California turn these houses into homes again," said Donovan. "California is clearly struggling with a brutal foreclosure crisis and we must make every effort to help to help communities prevent these foreclosed properties from becoming a source of neighborhood blight."

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.

In addition, the American Recovery and Reinvestment Act of 2009 makes available another $2 billion of NSP funding to State, local governments, non-profit entities, or consortia of non-profit entities for similar anti-blight and stabilization efforts. HUD will issue a funding notice with application requirements no later than May 3, 2009. Applicants will prepare an application and, for programmatic funding, complete citizen participation before submitting to HUD. HUD will review applications and make awards shortly thereafter.

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 Program 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.

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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. You can also follow HUD on twitter @HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.

State Community
Grant Amount
California Antioch
$4,049,228
  California State Program
$145,071,506
  Modesto
$8,109,274
  Stanislaus County
$9,744,482
District of Columbia Washington
$2,836,384
Florida Deltona
$6,635,909
  Kissimmee
$2,371,749
  North Miami
$2,847,089
  Sarasota County
$7,140,861
  Tamarac
$4,772,218
Iowa Iowa State Program
$21,607,197
Indiana Indiana State Program
$83,757,048
Maryland Prince Georges County
$10,883,234
Michigan Canton Twp
$2,182,988
  Detroit
$47,137,690
  Flint
$4,224,621
  Genesee County
$7,506,343
  Grand Rapids
$6,187,686
  Kent County
$3,912,796
  Lansing
$5,992,160
  Lincoln Park
$2,417,688
  Macomb County
$9,765,375
  Michigan State Program
$98,653,915
  Oakland County
$17,383,776
  Pontiac
$3,542,002
  Redford
$3,041,364
  Warren
$5,829,447
  Wayne County
$25,909,153
Mississippi Jackson
$3,116,049
Montana Montana State Program
$19,600,000
Nebraska Nebraska State Program
$19,600,000
Nevada Clark County
$22,829,062
  North Las Vegas
$6,837,736
New York Nassau County
$7,767,916
  Orange County
$2,163,744
Tennessee Knoxville
$2,735,980
  Tennessee State Program
$49,360,421
Texas Dallas County
$4,405,482
  Fort Bend County
$2,796,177
  Garland
$2,040,196
  Grand Prairie
$2,267,290
  Harris County
$14,898,027
  Houston
$13,542,193
  Mesquite
$2,083,933
Insular Areas American Samoa
$100,000
  Guam
$100,674
  Mariana Islands
$364,162
  U.S. Virgin Islands
$579,451
Total
$730,701,676

 

 
Content Archived: March 25, 2015