The Department of Housing and Urban Development (HUD) is launching a $50 million effort to help state and local governments address the inventory of foreclosed properties assisted under HUD's Neighborhood Stabilization Program (NSP), HUD Secretary Shaun Donovan has announced.
HUD is awarding $44.5 million to nine national organizations and another $5.5 million to help local communities purchase, rehabilitate and resell foreclosed properties in especially hard-hit neighborhoods.
Provided through the American Recovery and Reinvestment Act of 2009, these grants will allow HUD to dispatch teams of experts to help improve the effectiveness of neighborhood stabilization programs, particularly in communities with few staff and a lack of technical expertise, HUD says.
State and local governments primarily use NSP funding to purchase foreclosed properties and rehabilitate them. Grantees can also offer down-payment and closing-cost assistance to low- to moderate-income home buyers or create ‘land banks’ to assemble, temporarily manage and dispose of vacant land for the purpose of stabilizing neighborhoods.