Press Release - Federal Funds to Help Buy Abandoned Homes
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OFFICE OF GOVERNOR BILL RITTER, JR
FOR IMMEDIATE RELEASE
TUESDAY, DEC. 30, 2008
Megan Castle, (303) 866-6386
Ryan McMaken, (303) 866-4651
State Receives $34 Million in Federal Funds to Help Cities Buy Abandoned Homes
U.S. Housing and Urban Development Secretary Steve Preston approved Colorado's request for a $34 million Neighborhood Stabilization Program grant to help the state recover from the effects of high foreclosures and declining home values. The funds will allow communities to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight.
"Foreclosed and abandoned properties are often targets for vandalism and other types of criminal activity," said Gov. Ritter. "Having these HUD funds available to help distressed communities is important to keeping these communities stable and safe for the long-term."
According to the Colorado Division of Housing, there were 25,320 completed foreclosures during 2007, and the Division estimates there will be approximately 22,000 completed foreclosures during 2008. Adams, Denver, Weld, Arapahoe, and Pueblo Counties have experienced some of the highest foreclosure rates in Colorado in recent years.
HUD's Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides a total of nearly $4 billion to States and certain local communities experiencing particularly high foreclosure problems and risk of property abandonment.
The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Agency seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices. The State of Colorado's approved plan is located at: http://www.dola.state.co.us/cdh/SubstantialAmend.htm.