The U.S. Government has made close to $6 billion available for the ‘Neighborhood Stabilization Program’, in order to reduce the number of foreclosed homes on the market. The money authorized last summer will go to state and local housing authorities and non-profit organizations involved in providing housing for middle- and low-income families.
Most of the NSP funds come from the $3.92 billion that was approved as part of the Housing and Economic Recovery Act of 2008 passed in August. These funds must be spent in communities with the highest numbers of foreclosures. They’ll go to assisting families earning no more than 120% of the median income of the local area, with 25% of the money going to families earning less than half the median.
Now a second round of NSP funding has been approved. As part of the Recovery and Reinvestment Act of 2009 that was made law in February. It provides $1.93 billion to be allocated on a competitive basis. Potential grantees will be non-profits like community development organization certified by the U.S. Treasury Department.
Another $50 million is availalbe to pay for technical assistance in running programs funded by the first two rounds of funding.
