HUD OKAYS WASHINGTON STATE'S $28.2 MILLION NEIGHORHOOD STABILIZATION PLAN TO ADDRESS COMMUNITIES HARD-HIT BY FORECLOSURE
Funding aimed at neighborhoods facing potential abandonment and blight
WASHINGTON - U.S. Housing and Urban Development Secretary Steve Preston today approved a $28,159,293 plan submitted by the State of Washington to help its communities recover from the effects of high foreclosures and declining home values.
Funded under HUD's Neighborhood Stabilization Program, Washington State's Department of Community, Trade and Economic Development will shortly begin to target emergency assistance to particular neighborhoods by acquiring and redeveloping foreclosed properties that might otherwise become sources of abandonment and blight. Details of the State's plan for using NSP funds
"It is critical that we work closely with State and local governments to put this money to work as quickly as possible to help 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 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.
As state and local governments submit their NSP funding plans, HUD continues to review the plans in an efficient and timely manner.
HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; 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.