FOR IMMEDIATE RELEASE: September 26, 2008
SCHUMER ANNOUNCES OVER $2 MILLION IN NEW CDBG MONEY FOR ORANGE COUNTY MUNICIPALITIES TO BUY FORECLOSED AND VACANT HOMES, REVIVE COMMUNITIES COUNTY RAVAGED BY FORECLOSURES AND ECONOMIC SLOWDOWN
Funding is Part of a $54.5 Million Neighborhood Stabilization Program Which Will Help Orange County Communities Acquire and Redevelop Foreclosed Properties
Millions of Borrowers Facing Foreclosure As Economic Uncertainty looms
Foreclosed Properties Drag Down Home Values on Their Block and Across Entire Communities
As our national economy is in grave turmoil and families continue to lose their homes to foreclosure, U.S. Senator Charles E. Schumer announced over $1
“The subprime mortgage crisis is shaking the foundation of the
The Neighborhood Stabilization Program (NSP) allows States and local governments to use the funding to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. NSP grantees can use the stabilization grants to buy foreclosed homes, purchase land and property, demolish or rehabilitate abandoned properties, offer down payment and closing cost assistance to low to moderate income homebuyers, or to create “land banks” to assemble, temporarily manage, and dispose of vacant land to encourage re-use or redevelopment of property. Grantees are obligated to use the funds within 18 months of notification.
HUD will help the communities implement their neighborhood stabilization programs. They are also actively encouraging local governments to coordinate with each other and with their state governments. Implementing these programs may benefit from an area-wide or even regional approach. It may also require state and local planners to put their collective heads together to ramp up these programs.
For over a year,