Treasury Offers More Grants for Affordable Housing
The government has been providing money for various programs 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 different states, has been issuing grants through the Treasury Department. National Mortgage News Online reports on the latest release of money from the Treasury Department:
The Treasury Department has earmarked another $486 million in American Recovery and Reinvestment Act funding for the construction and renovation of affordable housing in 12 states. Treasury deputy secretary Neal Wolin said the $3 billion total stimulus program is designed to contribute to economic stability, “one community at a time” through the development of affordable housing and creation of much needed jobs.
The money is meant to help cities and states fund affordable housing projects. With the recession causing problems with jobs, and with people unable to keep up with their mortgage payments, affordable housing is needed. Additionally, part of getting the housing market moving (and the economy eventually) is making sure that people can actually get into homes. Additionally, the jobs renovating or building the housing should provide jobs for those who need them, further stimulating the economy. Some of the states receiving money in this round of funding include:
- Alabama
- Arkansas
- Connecticut
- Georgia
- Louisiana
- Maryland
- Massachusetts
- Montana
- New Mexico
- Vermont
- New Hampshire
- U.S. Virgin Islands
The Treasury Department expects to release more funds for affordable housing projects in coming months. It remains to be seen whether the massive spending that has been taking place since the end of 2007 will be effective in bringing the recession to an end. It will take time for the measures to work their way through the economy. And it will take still more time to determine whether the economy will grow at a pace to sustain itself after the government stops injecting money into the market.
