Housing and Urban Development Secretary Shaun Donovan announced today that an additional 1 billion in grants awarded to States, counties and cities across the country. Almost half of funds go to the four hardest hit states of Arizona, Nevada, California and Florida.
We here in Arizona will receive approx. 45.4 million in funds to help cities and counties to acquire land and property, demolish or rehabilitate abandoned properties, and provide downpayment and closing cost assistance to low- to moderate-income homebuyers.
Quoting from today’s press release from HUD;
“The funding announced today is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion.
State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to moderate-income homebuyers (household incomes not exceed 120 percent of area median income). In addition, these grantees can create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.
In addition to a third round of NSP funding, the Dodd-Frank Wall Street Reform and Consumer Protection Act creates a $1 billion Emergency Homeowners Loan Program to be administered by HUD. This loan program will provide up to 24 months in mortgage assistance to homeowners who are at risk of foreclosure and have experienced a substantial reduction in income due to involuntary unemployment, underemployment, or a medical condition. HUD will announce additional details, including the targeted areas and other program specifics when the program is officially launched in the coming weeks. For the complete press release please click here for the HUD website.
Here’s the breakdown for the State of Arizona.
Avondale City $1,224,903
State Of Arizona $5,000,000
Maricopa County $4,257,346
Mohave County $1,990,744
Peoria City $1,198,780
Pinal County $3,168,315
Surprise City $1,329,844
Arizona Total $45,377,073
For the complete Neighborhood Stabilization Program (NSP3) Funding Allocation Table click here.
Hopefully, this continues to help clean up the inventory of foreclosed homes, abandoned homes and help low income wage earners become homeowners. That’s a good thing!
Questions? Call me anytime. Bill Cole, Re/Max Excalibur. 480-421-8116