Friday, Sept. 26, 2008

$2.8 Million Allocated to Fairfax County to Stabilize Neighborhoods Impacted by Foreclosures

The United States Department of Housing and Urban Development (HUD) announced today that a total of $3.92 billion will be allocated nationally and particularly to those areas experiencing the effects of high foreclosures. HUD's new Neighborhood Stabilization Program (NSP) 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 funding for Fairfax County is $2,807,300.  This funding will flow to the county through the Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008 and will be used to purchase, or finance the purchase of foreclosed homes, as well as provide counseling services.  The county has been anticipating this funding and expects to use the funds to enhance its existing “Silver Lining” Program.  Staff from the Department of Housing and Community Development will be developing a proposal for the use of the funds for consideration by the Fairfax County Board of Supervisors Housing Committee and the Fairfax County Redevelopment and Housing Authority in October and for approval by the Board of Supervisors in November.  Applications are due to HUD by December 1.

HUD plans to host a national housing summit in Washington, DC on October 7-8, as well as a series of regional conferences to explain the details of this new program to State and local officials.

To view the full news release by HUD, please click here.