Industry News
August 18, 2009
Millions Allocated for the Purchase of Abandoned and Foreclosed Homes
Approximately $384.5 million has been allocated to counties in California, and approximately $145 million to the State of California Department of Housing and Community Development (HCD) for distribution to smaller jurisdictions for a Neighborhood Stabilization Program (NSP).
The funds can be used to:
- purchase and rehabilitate homes to sell, rent or redevelop;
- create land banks for homes that have been foreclosed upon;
- demolish blighted structures;
- redevelop demolished or vacant properties; and
- establish financing mechanisms for purchase and redevelopment of foreclosed- upon homes and residential properties.
HUD requires that NSP funds be targeted to communities with high rates of foreclosure, high rates of subprime loans, and the likelihood of future high rates of foreclosure.
An additional $1.93 billion nationally was authorized by American Recovery and Reinvestment Act f 2009 (ARRA) for NSP2 to be allocated on a competitive basis. HCD has applied for $21 million in conjunction with eight cities. Larger jurisdictions will also be completing for grants from HUD.
