Money Begins Flowing for the Neighborhood Stabilization Program
Last summer, $6 billion was approved to help the Neighborhood Stabilization Program prevent blight caused by foreclosures. The money is designed to help state and local governments buy up foreclosed properties so that they can be offered to those with lower incomes, and others who might be locked out because of tighter lending. CNN Money reports on the purpose of the NSP money:
The money, which has only started to flow during the past few weeks despite much of it being authorized last summer, will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.
“The NSP was designed to help deal with all the properties in foreclosure around the nation,” said Antonio Reilly, executive director of the Wisconsin Housing and Economic Development Authority (WHEDA), which will administrate the program in several counties in the state. …
By regulation, these funds must be spent in communities with the highest incidences of foreclosures and subprime loans. They’ll go to helping households earning no more than 120% of the median income of the local area, with 25% of the money going to families earning less than half the median.
The money is just beginning to flow, however. As usual, things are moving at the speed of bureaucracy, and that has meant things have delays in getting the program set up in a number of neighborhoods that could use it. However, there is hope that local governments can begin providing what is needed to prevent homes from becoming vacant for long periods of time.
Those being helped by government programs are not the only ones benefiting from the rising tide of foreclosures. Many people, who could not afford to buy homes at the height of the housing boom, are able to take advantage of lower prices due to falling home values. Even with these incentives, however, the housing market is not expected to truly stabilize until 2012.
July 6th, 2009 at 1:30 am
[…] Money Begins Flowing for the Neighborhood Stabilization Program Last summer, $6 billion was approved to help the Neighborhood Stabilization Program prevent blight caused by foreclosures. The money is designed to help state and local governments buy up foreclosed properties so that they can be offered to those with lower incomes, and others who might be locked out because of tighter lending. CNN Money […] […]
July 13th, 2009 at 4:56 pm
[…] aimed at halting blight and foreclosure, as well as creating affordable housing. One program, the Neighborhood Stabilization Program, recently saw money begin flowing. Another program, aimed at affordable housing projects in […]