Federal Stimulus Funds to Buy and Fix Up Foreclosed Properties

State and local governments across the nation areapplied for funds in the total of $54 million. Boston
gearing up to spend federal stimulus funds. The U.S.Community Capital, alone, applied for $50 million in NSP
Department of Housing and Urban Development (HUD)funds in order to broaden the organization's ability to
birthed the Neighborhood Stabilization Program (NSP)assist the state's residents who are facing foreclosure
that provides federal stimulus dollars to assiston their homes. The group has already committed $4
neighborhoods hardest hit by the home foreclosuremillion in assistance to purchase abandoned property,
crisis. The NSP falls under the umbrella of theloan funds to small developers renovating vacant
American Recovery and Reinvestment Act (ARRA).properties and assist struggling homeowners in keeping
HUD's intent for the NSP is to provide assistance toor buying back their homes.
more than 500 communities, cities and counties acrossConnecticut has thrown their hat into the ring for $45
America in the form of rent relief, for homelessmillion in NSP dollars, which will target the state's four
prevention and to assist low-income families to buymost hard hit cities. The Connecticut Consortium falls
homes. Organizations that are eligible for NSP fundingunder the state's Department of Economic and
are cities, non-profit agencies and housing authorities.Community Development (DECD), and will be
St. Lucie and Martin Counties in Florida hope to receiveresponsible for allocating the funds to local
some $7.5 million in stimulus dollars. The countiescommunities. Low- to middle-income families will be the
recently applied for the funds through the state'sprimary beneficiaries of the program.
Department of Community Affairs. Both countiesChicago received $5.4 million in stimulus funds earlier
intend on buying foreclosed homes, renovating themthis year. The city's goal is to reinvest profits made
and selling them to low-income homebuyers. The otherfrom selling renovated properties back into other
initiative for the funding will be to weatherizeforeclosure properties.
neighborhood homes.Ohio was allocated $45 million NSP dollars to jump
Fresno County, along with the City of Fresno, hasstart the housing market in blighted neighborhoods. The
received a total of $18 million in NSP funding tointent is to allocate the stimulus money quickly, so that
address the abundance of local area foreclosedcommunities will be enabled to attack the growing
homes. Officials have already interviewed severalnumbers of abandoned and boarded up homes.
developers that will be hired to buy, renovate and sellKentucky was awarded $44 million, Evanston, Illinois
or rent the homes to low-income families.applied for $39.4 million and Virginia received $45 million.
Blighted areas will benefit the most from the funds. ABrad Pitt even entered the fray with his Make It Right
byproduct of the dollars will be construction jobsFoundation. If funding is approved, it will benefit New
associated with renovating the properties.Orleans and a project the group will launch in Newark,
Massachusetts may see some activity soon in manyNJ. His organization, as part of a consortium of
of their local cities and neighborhoods, since the statenon-profits, is asking for $65 million.