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Neighborhoods get helping hand from HUD
The Department of Housing and Urban Development is trying to help state and local governments purchase abandoned properties.
By Dorothy Ramienski
Internet Editor
FederalNewsRadio
The Department of Housing and Urban development has allocated $3.92 billion in emergency grant money to help state and local governments buy up foreclosed property through the Neighborhood Stabilization Program.
On Tuesday’s Daily Debrief, hosts Christopher Dorobek and Amy Morris spoke with Susan Peppler, Assistant Secretary for the Office of Community Planning and Development at HUD, who says the money will be used to buy foreclosed homes in local neighborhoods so that they can be refurbished and resold.
The money can be used to buy foreclosed homes — to land-bank, or buy land and property — to demolish or rehabilitate abandoned properties. It can offer down payment and closing cost assistance to low- and moderate-income home buyers.
Peppler says this particular program, which falls under the Community Development and Block Grant Program, will have 308 direct recipients. Once the money is handed out, local governments will be able to buy up foreclosed homes.
This is not, however, a bailout plan for individuals.
It is an attempt to have a positive impact on homes that are abandoned and foreclosed. This money would not be used for individuals who’s homes are currently in foreclosure. This money will only be used for homes that have already been foreclosed on and are empty.
Peppler says state and local government officials should not worry about getting into the real estate business. She says the money is available for states to give to non-profits and housing organizations who might be able to bring more expertise to the situation.
The funds are also given out on an as-needed basis. Peppler says the communities with the most abandoned properties get the most assistance.
Within the states, most of them already know and have their own programs and statistics together on which areas in their own state have the greatest need. They will be working on putting their plans together and submitting them to HUD — and their plans will include areas of greatest need in their state.
The goal, Peppler says, is to strengthen the Housing and Economic Recovery Act.
One part is this Neighborhood Stabilization Program . . . that goes to the state and local governments. The other part of this is an FHA plan, which will help those families who are currently in danger of or in the process of foreclosure on their homes. So, it’s two-fold.
Each state and city must have its plan submitted by Dec. 1. HUD then has 45 days from that date to approve the plans.
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On the Web:
HUD – Neighborhood Stabilization Program
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