ALBANY, NY - The U.S. Department of Housing and Urban Development (HUD) has approved the New York State Housing Finance Agency's (HFA) plan to distribute $54.5 million in Federal Neighborhood Stabilization Program (NSP) funds to buy, renovate and resell foreclosed and abandoned properties. The decision enables HFA, the agency responsible for overseeing the State's NSP program, to approve grants to local governments, nonprofits and other organizations that will help rebuild communities most affected by the foreclosure crisis.
The $54.5 million will come from Federal funds authorized by the Housing and Economic Recovery Act of 2008 passed by Congress last July. It is expected that most of the NSP funds will be used to purchase and rehabilitate foreclosed and abandoned residential properties, as well as to redevelop vacant sites. HFA has used HUD data and recommendations to set the following caps, or maximums, on the amount of funding that can go to each county in the State.
Last month, HFA issued a Request for Proposals asking organizations to apply for NSP funds. The deadline to submit applications for NSP funding is February 10. In addition to the $54.5 million in federal funds, the New York State Affordable Housing Corporation, an HFA subsidiary, will make another $10 million available for the program.
The NSP program is part of the Governor's effort to address the impact of the foreclosure crisis on New York State. The State has already distributed $25.4 million to nonprofit agencies to provide foreclosure prevention counseling and legal services. In addition, the Governor signed foreclosure reform legislation in July 2008 that increased protections for New Yorkers at risk for losing their homes.
Source: NorthCountryGazette.org