Under the federal Neighborhood Stabilization Program, many new state and local initiatives are expected to roll out in the next few weeks that will help middle- and low-income families buy foreclosed homes in hard-hit neighborhoods.
About $5 billion is available. Technical assistance in the amount of $50 million has been added to get the programs up and running. Regulations limit participation to households earning no more than 120 percent of the median income. About 25% of funds is targeted for families earning less than half the median income..
The funds must be used for primary residences in communities with the highest incidence of foreclosures and subprime loans. There also will be a lease-to-own program.
The Neighborhood Stabilization Program was authorized in the summer of 2008. However, it has been rolling out slowly because the volume of paperwork involved has been overwhelming.
HUD’s new Neighborhood Stabilization Program provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.
Stay tuned here for more details about your area as communities get on board.
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