The Obama Administration today awarded $2 billion in “neighborhood stabilization” funding to states, cities, and communities hardest hit by the foreclosure crisis. The funds, part of 2009’s $787 billion American Recovery and Reinvestment Act, will begin flowing immediately to state and municipal governments, as well as nonprofit real estate developers. The White House says the grants are meant to spur economic development and job growth.
The U.S. Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization Program (NSP) doled out 60 grants, the largest of which–a $223.8 million award–will go to the Michigan State Housing Department Authority. The federal monies are meant to help local governments and nonprofit developers buy foreclosed properties, fix them up, and put them back on the market.
“Neighborhoods have been severely affected by declines in property values, public safety, and the local tax base. This money will stem the impact of foreclosures on communities across the country,” said Adolfo Carrion, Director of the White House Office of Urban Affairs and Deputy Assistant to the President. “The natural impact [of the funds] will be job generation. It’ll prevent a drag on neighboring property values, and repair the local tax base, Carrion says.
The foreclosure crisis is far from over. A report released today by real estate data firm RealtyTrac showed a record 2.8 million properties received a foreclosure notice in 2009, a 21% jump from 2008 and 120% higher than 2007. High foreclosure activity is expected to continue in 2010.
The administration said it choose grant recipients based on need and by “targeting those places that have demonstrated innovation,” Carrion said. Go to http://portal.hud.gov/portal/page/portal/HUD/documents/nsp2grantchart.docx for the full list of cities, towns, state agencies, and other organizations that are receiving neighborhood stabilization grants.