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$3.9 Billion in Community Stabilization Funds Awarded; Participate Now to Ensure Asse
Original message from: firstname.lastname@example.org
$3.9 Billion in Community Stabilization Funds Awarded; Participate Now to
Ensure Asset Building
HUD Releases Distribution Formula for Grants
$3.92 billion in emergency funds will soon be available to states and
localities from the
Housing and Economic Recovery Act of 2008 (PL 110-289) Neighborhood
Stabilization Program (NSP). The funds, treated as emergency
Community Development Block Grant (CDBG) funds, will allow states, tribes
and localities to purchase foreclosed properties that might otherwise become
abandoned and sources of blight within their communities. The purchase of
these homes can also help stem the decline of house values of neighboring
At least $19.5 million per state
Each state has been given a minimum allocation of $19.5 million (0.5% of the
total amount). States can receive more funding based on a formula of the
percent of foreclosures, subprime mortgages, mortgage defaults and
Allocations by state can be found on the U.S. Department of Housing and
Urban Development (HUD)
Federal Notice which was published on Friday, September 29, 2008.
Don't miss this tremendous opportunity.
This one-time, emergency neighborhood stabilization program provides a
tremendous opportunity to expand sustainable homeownership and build strong
communities. Assets advocates should fully participate in program design and
This investment is estimated to encourage:
. $10 billion in economic activity nationwide
. The creation of more than 32,000 jobs
. More than $800 million in one-time revenue for all levels of government
. The restoration of nearly $60 million per year in real estate tax
collections by local governments
here to find your city, county or state NSP contact in your state.
Requirements and eligible uses:
Each grantee must create their own program and funding priorities. Advocates
for assets, homeownership and community economic development have the
opportunity to help set priorities for the funds in their state.
Eligible activities include the following:
. Acquire land and property
. Demolish or rehabilitate abandoned properties
. Redevelop vacant or blighted property
. Downpayment and closing costs assistance to low- to moderate-income
homebuyers whose incomes are 120% and below the area median income. (Assets
advocates should ensure these are quality financial products that could also
create a revolving downpayment assistance fund to help future homeowners.)
. Create land banks to assemble, temporarily manage and dispose of vacant
land for the purpose of stabilizing neighborhoods and encouraging
Although the NSP funds are seen as CDBG dollars, some of the requirements
and eligible uses of the NSP funds are different.
. All activities funded by NSP must benefit low- and moderate-income persons
whose income does not exceed 120% of the area median income.
. NSP grantees must also use at least 25% of the funds appropriated for the
purchase and redevelopment of abandoned or foreclosed homes or residential
properties to house individuals or families whose incomes do not exceed 50
percent of the area median-income.
. Grantees are required to have all funds obligated within 18 months of
receipt and must spend all funds within 48 months of receipt.
Grantees have until December 1, 2008 to submit a proposed Action Plan
Amendment application to HUD. The proposals must be in the form of an
amendment to their CDBG Annual Action Plan outlining how they will
distribute and use funds.
Grantees must also publish the plan on their official website for no less
than 15 calendar days prior to public comment.
here to learn more about the Neighborhood Stabilization Program.
Jacqueline Wilks-Weathers, MPA
The Center for Financial Independence & Innovation
1419 Mayson Street, NE
Atlanta, GA 30324
Office: (404) 541-9005 X 107
Cell: (404) 558-6437
Fax: (404) 541-9002
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