Thursday, September 9, 2010

Creating Jobs and Affordable Housing: 3rd Round Neighborhood Stabalization Funds

HUD announced an additional $1 billion dollars from the Obama Administration (through the Dodd-Frank Wall Street Reform and Consumer Protection Act) for neighborhoods facing the impact of high foreclosure rates. This funding will be allocated through a third round for HUD's Neighborhood Stabilization Program (NSP) for emergency assistance to state and local governments to acquire, redevelop or demolish foreclosed properties. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (ARRA) appropriated an additional $2 billion. 

NSP 3 will take advantage of the "First Look" with the National Community Stabilization Trust that Secretary Donovan referred to in a recent White House blog. First Look gives NSP grantees an exclusive 12-14 day window to evaluate and bid on properties before others can do so.  HUD will issue NSP3 guidance in the next few weeks.

These funds have the potential to impact access to and the availability of affordable housing as well as creating jobs. State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low- to moderate-income home buyers. In addition, these grantees can create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.

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