The Department of Housing and Urban Development (HUD) continued its attempts to address the ongoing rise in foreclosures nationally during the week of Sept. 5 with another round of major contributions to state and local governments.
The department’s $1 billion contribution will be the third round of funding through HUD’s Neighborhood Stabilization Program (NSP), which was created by Congress to help cities, counties and states deal with problems associated with the home foreclosure crisis in the nation through infusions of federal government funding.
“The president made a decision early in his administration that we would combat the loss of property or homeownership due to the foreclosure crisis,” HUD Deputy Secretary Ron Sims said in a statement. “We had a NSP 1 and a NSP 2 and so far we’ve spent $7 billion to stabilize neighborhoods.”
“We’re announcing today the continued effort to stem foreclosures and to ensure that we can recover the neighborhoods that had been lost,” Sims continued.
Governments can use the money as discretionary grants to buy land or property, demolish or rehabilitate abandoned properties or to offer financial assistance to low-to-moderate income homebuyers.
U.S. Rep. Donna Edwards (D-Md.) represents Prince George’s County, a hard-hit jurisdiction which received $1.8 million in funding, and said the funding will go a long way toward helping the county recover.
“The funds announced today through the U.S. Department of Housing and Urban Development Neighborhood Stabilization Program will help communities in Prince George’s County that continue to recover from the devastating effects of the foreclosure crisis,” Edwards said in a statement. “The $1.8 million awarded to Prince George’s County will help provide critical assistance to purchase foreclosed homes to end the free fall in home values throughout the county. “
Newark, N.J. Mayor Cory Booker announced that the city will receive $2 million, which will be used to purchase and rehabilitate 47 foreclosed homes and sell them to low- and middle-income Newark residents.
“What we’re celebrating today is not just job creation, home creation or neighborhood stabilization, but today we really are creating and delivering upon the most powerful of human forces and that is hope and love,” Booker said at a press conference. “This is hope in action and this is love being manifested.”