More help for hard-hit neighborhoods

The Obama Administration says it will work with Congress to find ways to help state and local governments more effectively combat the housing crisis and foreclosures through additional funding through the Neighborhood Stabilization Program (NSP) and foreclosure prevention counseling.

HUD previously awarded nearly $6 billion in NSP grants to help state and local governments respond to rising foreclosures and falling home values: $4 billion funded NSP1 through the Housing and Economic Recovery Act of 2008 (HERA); and, an additional $2 billion funded NSP2 through the American Recovery and Reinvestment Act of 2009 (Recovery Act).
The initial NSP1 funds gave each state government a "base allocation" of $19.6 million without regard to need. Eighteen months later, the HUD will recapture money from communities that have not yet committed NSP1 funding and reallocate it to city and county governments with very high foreclosure and/or vacancy rates and their jurisdiction, based on more recent data.
Additionally, the Administration plans to work with Congress on new foreclosure counseling efforts to help homeowners stay in their homes. HERA provided $150 million for housing counseling; additional funds would broaden the Administration's reach in its ongoing foreclosure prevention efforts.
HUD wants some technical changes that could improve the flexibility and impact of the NSP program. Local communities would design and set their own program targets, but HUD would provide options for implementation. To ensure best use of taxpayer dollars, grantees would, based on performance, either be required to:
Work with a subgrantee – an entity that is granted the legal obligations and authority to implement NSP on behalf of the grantee,
Sign a technical assistance agreement with HUD or;
Work in a consortium with a high capacity lead grantee.

                                      Angel Calzadilla
                                     Prudential Florida Realty
                                     6175 Bayview Drive
                                     Fort Lauderdale, FL. 33308