Grants Will Help Buy, Renovate and Resell Foreclosed and Abandoned Properties throughout State
New York, NY – January 23, 2009 – (RealEstateRama) – Governor David A. Paterson announced that 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.
“HUD’s prompt approval of our Neighborhood Stabilization Program plan will allow us to save neighborhoods endangered by the spreading foreclosure crisis,” said Governor Paterson. “My administration is committed to responding to the pain caused by subprime fallout and this funding will ensure that our efforts will continue.”
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:
| County |
Initial Funding Round Caps |
|
| Albany Broome Delaware Dutchess Erie Monroe Nassau Niagara Oneida Onondaga Orange Rensselaer Rockland Schenectady Suffolk Westchester New York City Other counties |
$1,128,350 |
per county |
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.
HFA President and Chief Executive Officer Priscilla Almodovar said: “Many communities across the State are endangered because of the fallout from the foreclosure crisis. The Neighborhood Stabilization Program will be an important tool to protect these neighborhoods and provide homes to new homebuyers. We look forward to carefully examining the applications for these funds and putting these resources to work as quickly as possible.”
HUD Secretary Steve Preston said: “It is critical that we work closely with state and local governments to put this money to work as quickly as possible to help communities recover from the effects of foreclosure and declining property values. Stabilizing neighborhoods is what this program is all about. HUD will continue to work closely with these communities to make certain these funds are targeted to neighborhoods with the greatest needs.”
U.S. Senator Charles E. Schumer: “These funds will go a long way to help communities across New York cope with the deluge of foreclosures and begin the process of rebuilding devastated neighborhoods. I thank Governor Paterson and applaud his efforts in helping to curb the blight of vacant and foreclosed homes in New York State.”
U.S. Senator Hillary Rodham Clinton said: “Today’s announcement is welcome news for New York, its neighborhoods and its hardworking residents. As the State faces a dire economic situation, it is imperative that we work to strengthen our struggling communities. The Federal Neighborhood Stabilization Program (NSP) funds will play a critical role in preserving and stabilizing our communities hardest hit by the home foreclosure crisis.”
A copy of the HFA’s Neighborhood Stabilization Program RFP is available at the agency’s website: www.nyhomes.org.
The NYS Housing Finance Agency was created in 1960 to sell bonds to finance the construction and rehabilitation of multifamily affordable rental housing in New York State.
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Contact: Erin Duggan | erin.duggan (at) chamber.state.ny (dot) us | 212.681.4640 | 518.474.8418
Housing Finance Agency Contact: Philip Lentz | plentz (at) nyhomes (dot) org | 212-872-0679
