Oakland and Macomb Communities Allocated Millions for Neighborhood Stabilization

Assistance Will Allow Communities to Acquire and Redevelop Foreclosed Properties 
 
Washington D.C. – October 06, 2008 – (RealEstateRama) — The Department of Housing and Urban Development (HUD) announced that Michigan has been allocated a total of $263,563,263 under the Neighborhood Stabilization Program to purchase and redevelop foreclosed properties.  With foreclosure rates across the state among the nation’s highest, Michigan received the third largest allocation behind Florida and California.

“Foreclosures not only affect those who lose their homes, they bring surrounding home values down for everyone and lower revenue for our communities,” said Rep. Levin.  “These additional funds will allow our communities to tackle the foreclosure crisis head-on.”

 Allocations under the Neighborhood Stabilization Program were made to state governments as well as local communities who receive CDBG funds directly.  The $263.5 million total includes:

–         $98.6 million allocated for use statewide

–         $17.4 million for Oakland County

–         $9.8 million for Macomb County

–         $5.8 million for Warren

–         $3.2 million for Southfield

–         $2.4 million for Sterling Heights

–         $2.1 million for Clinton Township

These funds may be used to purchase foreclosed homes at a discount for rehabilitation or redevelopment, to demolish or rehabilitate abandoned properties, to offer down payment assistance to low- and moderate-income homebuyers, and to create “land banks” to manage vacant land.

The Neighborhood Stabilization Program is a new initiative created by the Housing and Economic Recovery legislation approved by Congress in July. 

Contact:
Cullen Schwarz
Office: 202.225.4961