News Release

HUD APPROVES $52 MILLION NEIGHBORHOOD STABILIZATION PLAN FOR NORTH CAROLINA
Funding aimed at communities hard-hit by foreclosure

GREENSBORO – U.S. Housing and Urban Development Secretary Steve Preston today approved a $52 million dollar plan for the state of North Carolina seeking to recover from the effects of high foreclosures and declining home values. Funded under HUD’s new Neighborhood Stabilization Program (NSP), North Carolina’s Department of Commerce, Division of Community Assistance will target this emergency assistance to high-need communities across the state.

“It is critical that we work closely with State and local governments to put this money to work as quickly as possible to help these communities recover from the effects of foreclosure and declining property values,” said Preston. “Stabilizing neighborhoods is what this program is all about. HUD will continue to work closely with these communities to make certain these funds are targeted to neighborhoods with the greatest needs.”

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.
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.

More information on the State’s plan can be obtained on the North Carolina Department of Commerce website: www.nccommerce.com/nsp

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