December 2, 2016
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HUD APPROVES $731 MILLION IN NEIGHBORHOOD STABILIZATION FUNDING FOR 48 STATES AND LOCAL COMMUNITIES

HUD No. 09-025                                                                           FOR RELEASE
Brian Sullivan                                                                           Thursday
(202) 708-0685                                                                           March 19, 2009
http://www.hud.gov/news/index.cfm

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 practices.

###

HUD is the nation's housing agency committed to sustaining homeownership; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.


 

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
$ 3,542,193
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


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