Part of the federal government’s efforts to stabilize housing markets across the country -- and breathe life back into the economy -- is the Neighborhood Stabilization program. The program is designed to give federal dollars to communities most affected by foreclosures; the money is used to entice buyers back into those neighborhoods.
Arizona was approved to receive $121 million under the Neighborhood Stabilization program. The money will be used by the state, as well as Maricopa and Pima counties, Avondale, Chandler, Glendale, Mesa, Phoenix, Surprise, and Tucson, in part to provide down-payment and closing-cost assistance to buyers.
For more information on the programs, and to see if you qualify, visit www.yourwayhomeaz.com. Some of the highlights of the programs for homebuyers in the Valley:
State of Arizona
“The state of Arizona will use the majority of its Neighborhood Stabilization Program (NSP) funding to assist homeowners in purchasing foreclosed homes through a down payment assistance program. The program will be available to residents of Apache, Coconino, Cochise, Gila, Graham, Greenlee, La Paz, Mohave, Navajo, Pinal, Santa Cruz, Yavapai and Yuma Counties in May 2009. It will then be open to all Arizona residents in July 2009.”
Maricopa County
“Maricopa County will undertake a project know as Acquisition and Rehabilitation of Single Family Homes for Homeownership. The County will acquire and redevelop 50-100 abandoned and/or foreclosed upon single-family homes. These homes will then be available to eligible homebuyers for an amount equal to or less than the cost to acquire and redevelop the property.
Only existing residential structures will be include in the project. No new construction or increase in density will result from project activities. Eligible homebuyers must be at or below 120 percent Area Median Income and homes must be owner occupied.
Maricopa County will target areas of greatest need within Buckeye, El Mirage and Goodyear.”
Chandler
“The city of Chandler is purchasing up to 17 formerly vacant, foreclosed single-family homes to sell to income qualified homebuyers. The city will lease the land owned by the Land Trust to homeowners who buy only the structure that is on the land. This will reduce costs of the purchase and the owner will shared the equity of the home with the Land Trust, allowing the home to remain affordable indefinitely.
Approximately $100,000 will also be used to assist qualified homebuyers with down payment assistance. This will be secured with a 10-year forgivable lien on the purchased property.
The city will focus both the purchasing of foreclosed properties and the down payment assistance programs in the area from Ray Road to Chandler Boulevard and Alma School Road to Arizona Avenue.”
Phoenix
“The city of Phoenix has kicked off their first Neighborhood Stabilization Program, "Homeownership Assistance" assisting buyers of foreclosed homes, townhouses or condominiums with $15,000 in down payment and closing cost assistance.”
What do you think? Do you plan to take advantage of the Neighborhood Stabilization program to purchase a foreclosed home? Click on the “Comments” link to join the discussion!
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