Friday, May 22, 2009

Three Non-profits Awarded FY 2009 Federal Neighborhood Stabilization Program Funds

The Fairfax County Board of Supervisors and the Fairfax County Redevelopment and Housing Authority (FCRHA) have approved the award of Federal Neighborhood Stabilization Program Funds under the Silver Lining Plus Foreclosure Purchase Program.  The county awarded $228,000 to Reston Interfaith Housing; $454,168 to Pathway Homes, Inc.; and $203,534 to Christian Relief Services of Virginia.

The funds will be used by the non-profits to purchase foreclosed properties to provide affordable rental housing to extremely low-income: 30% of AMI and very low-income: 50% of AMI households.   Awards were made in the form of deferred, no interest, equity share loans.  If rehabilitation of the unit is needed, Home Improvement Loan Program (HILP) loan funds may be used not to exceed 10% of fair market value of property.

In March 2009, the Fairfax County Dept. of Housing and Community Development (HCD) announced the availability of $1,000,000 in funds under the federal Neighborhood Stabilization Program (NSP) to address the current foreclosure problem and help stabilize impacted neighborhoods in Fairfax County and issued a request for proposals for acquisition and rehabilitation projects only.  Properties were required to be located within designated areas of greatest need as identified in the RFP.  Project proposals also had to show evidence of financial feasibility and the ability to leverage NSP funds with other funds to acquire property 15% below the fair market appraised value.  Preference was given to proposals that: (1) served the greatest number of extremely low income households or 30 % or below Area Median Income; (2) would result in affordable housing that was accessible to persons with disabilities and/or others with special needs; and (3) could be completed within a 9-month timeframe after receipt of award.