It was announced today that there has been $1 billion earmarked by the Obama Administration to fund foreclosure torn neighborhoods.
“These grants will support local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods,” said Donovan. “We want to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. As a direct result of the leadership provided by Senator Chris Dodd and Congressman Barney Frank, who played key roles in winning approval for these funds, we will be able to make investments that will reduce blight, bolster neighboring home values, create jobs and produce affordable housing.”
These grants can be used by state and local governments to purchase property for improvement or demolition. Additionally, low to moderate income buyers can apply for funds to use for down payment or closing cost assistance. There will be a notice published soon with guidelines for the application process and program design.
Counseling will be provided to families receiving the assistance in hopes of preventing future foreclosures. Just as importantly, the lender involved will have to adhere to ethical lending practices.
For more information, visit www.hud.gov.
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