HUD Secretary Donovan announces $2 billion in Recovery Act funds to stabilize neighborhoods hit hard by foreclosureMortgagePress.comHUD, Shaun Donovan, Neighborhood Stabilization Program, foreclosures, Recovery Act
U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan
has announced that HUD is now soliciting grant applications under
the Department's Neighborhood Stabilization Program (NSP) to make
available nearly $2 billion in Recovery Act funding to states,
local governments and non-profit housing developers to combat the
effects of home foreclosures. Applications for NSP funds will be
due July 17, 2009.
Funded under the American Recovery and Reinvestment Act of 2009,
this round of NSP funding will award grants to applicants who will
target their efforts in areas with the greatest extent of abandoned
and foreclosed homes. In addition, HUD will provide up to $50
million in technical assistance grants to help grantees better
manage their neighborhood stabilization programs. Applications for
NSP technical assistance will be due June 8, 2009.
"HUD is committed to getting these funds out quickly and
effectively to help communities recover from the blight and
vacancies that have become visual symbols of difficult economic
times," said Donovan. "We have much more work to do to mitigate the
impacts that foreclosures have had on local communities; however,
innovative collaborations between local government, housing
agencies, and non-profits and creative, green-focused uses of
federal funds will create jobs and put us on the path to
recovery."
HUD has already allocated nearly $4 billion in NSP grants to
help state and local governments respond to rising foreclosures and
falling home values. The additional $2 billion in NSP grants that
HUD is making available today will further assist these state and
local governments, as well as non-profit developers, to acquire
land and property; to demolish or rehabilitate abandoned
properties; and/or to offer downpayment and closing cost assistance
to low- to middle-income homebuyers. Grantees can also stabilize
neighborhoods by creating "land banks" to assemble, temporarily
manage, and dispose of foreclosed homes.
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 from a lender
who agrees to comply with sound lending practices.
HUD is also offering up to $50 million in technical assistance
grants to help NSP grantees to more effectively manage the
inventory of foreclosed homes they purchase under the Neighborhood
Stabilization Program. Once awarded, HUD's NSP technical assistance
grants will help NSP recipients to:
• Implement sound underwriting, management, and fiscal
controls;
• Measure outcomes in the use of public funds through
accurate and timely reporting;
• Build the capacity of public-private partnerships;
• Develop strategies to serve low-income households;
• Incorporate energy efficiency into State and local NSP
programs;
• Provide support, technical assistance, and training on
the operation and management of land banks; and
• Train NSP recipients and their subgrantees on HUD program
rules and financial management requirements.
In addition, Secretary Donovan and the Department are committed
to providing the highest level of transparency possible as Recovery
Act funds are spent quickly and efficiently. It is vitally
important that the American people are fully aware of how their tax
dollars are being spent and can hold their federal leaders
accountable. Every dollar of Recovery Act funds HUD spends can be
reviewed and tracked at HUD's Recovery Act Web site by clicking here.
For more information, visit www.hud.gov.
