HUD Secretary Steve Preston allocated almost 4 billion dollars Friday to all states as part of the HUD's new Neighborhood Stabilization Program (NSP). The NSP program will give states fund (especially harder hit ares) to purchase foreclosed properties and redevelop them. The goal of this is to prevent abandonment of these home which would then become "eye sores" for the communities they are within.
The funding is provided through HUD's Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008.
Emergency Economic Stabilization Act of 2008
Summary of Emergency Economic Stabilization Act of 2008
Section-by-Section of Emergency Economic Stabilization Act of 2008
(source House Committee on Financial Services)
Every state will recieve a minimum grant of 19.6 million dollars. There are stipulations and guidelines as to how the money will be allocated. Communities will receive the funds as soon as they submit a plan that complies with the CDBG program. It will be up to the local and state government to determine the best use of the fund, and develop a plan.
HUD plans to host a national housing summit in Washington, D.C. on October 7-8, as well as a series of regional conferences to explain the details of this new program to governors, mayors, county executives and other state and local leaders.