Congressman Grijalva Welcomes Announcement of $12 Million in Grants for Foreclosed Properties

WASHINGTON, D.C. – February 03, 2009 – (RealEstateRama) — Congressman Raúl M. Grijalva announced today that more than $12 million in Neighborhood Stabilization Program (NSP) grants have been awarded to fund three projects in Pima and Maricopa counties.

The Neighborhood Stabilization Program (NSP), a new grant under the U.S. Department of Housing and Urban Development (HUD), will provide targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

The areas to receive NSP funds are:

• City of Avondale –$2.4 million
• Pima County –$3 million
• City of Tucson– $7.3 million

“This is grant will help our local economy and our families, who will benefit the greatest,” said Grijalva.

The funding is provided through HUD’s Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008. The funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. Grantees will have 18 months to use the funds.

The NSP grants can be used to establish financing mechanisms to assist individuals in purchasing foreclosed homes, acquire and rehabilitate abandoned or foreclosed properties, offer down payment and closing cost assistance to low- to moderate-income homebuyers (household incomes that cannot exceed 120 percent of area median income), establish “land banks” for foreclosed homes, and/or dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.

More information about the Neighborhood Stabilization Program is available at www.hud.gov/nsp.