The Obama administration has announced plans to channel $1.5 billion of unused TARP money to state housing finance agencies (HFAs) as part of a market stabilization effort targeting states that have seen the steepest price declines.
Obama, alongside Senate Majority Leader Harry Reid, D-Nev., is scheduled to speak about the initiative today in Nevada.
States where house prices have fallen more than 20% from their peak will be eligible for this funding, according to a post on the White House blog from Treasury Department policy advisor Sarah Apsel.
HFAs will be required to submit program designs to the Treasury, which will determine maximum state-level allocations in the next two weeks. The formula for fund allocation will be based on home-price declines and unemployment levels, Apsel wrote.
"The types of programs that may be funded include measures for unemployed homeowners, programs to assist borrowers owing more than their home is now worth, programs that help address challenges arising from second mortgages or other programs encouraging sustainable and affordable homeownership," the statement says.