In a press release issued late last week, U.S. Housing and Urban Development Secretary Steve Preston announced the creation of HUD’s new Neighborhood Stabilization Program (NSP), which “will provide targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.” According to HUD, the program will be funded by $3.92 billion allocated in the Housing and Economic Recovery Act of 2008 (HR 3221) and will be granted to all states and especially hard-hit areas.

“To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way,” said Preston. “Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact. Now the real work begins and HUD stands ready to support these States and communities as they work to stabilize their neighborhoods.”
To determine areas of the greatest need, HUD factored in the number and percentage of home foreclosures in each state/unit of local government, the number and percentage of homes financed by subprime mortgages in each state/unit of local government, and the number and percentage of homes in default or delinquency in each state/unit of local government.
To learn more about the Neighborhood Stabilization Program, click here.