NJ To Receive Federal Funds To Fight Foreclosure Crisis

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WASHINGTON, D.C. — The U.S. Department of Housing and Urban Development’s has awarded New Jersey communities $11,641,549 million in additional funding to help minimize the negative effects of the foreclosure crisis. This funding will be distributed through HUD’s Community Development Block Grant Neighborhood Stabilization Program third round of grants.

The grants will be used to help communities purchase foreclosed homes, land and property, demolish or rehabilitate abandoned property, assist low- and middle-income homebuyers with down payment or closing costs, and manage the use of vacant land.

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“Foreclosures don’t just affect the New Jersey family that loses its home, they create a ripple effect that brings down property values in the surrounding communities and harms neighboring families,” said U.S. Sen. Robert Menendez. “This additional funding for New Jersey will help families hold on to their homes, revitalize our communities, and change the direction of our economy.”

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 allocated additional funding for the Neighborhood Stabilization Program (NSP), which was originally established under the Housing and Economic Recovery Act of 2008. The NSP was created with the purpose of helping stabilize communities that have suffered the impact of foreclosures and abandonment as a result of the mortgage crisis by facilitating the purchase and redevelopment of foreclosed and abandoned properties.

For this third round of funding, grants were awarded to the states and local government with the greatest need for neighborhood stabilization funding – the communities with the highest rate of foreclosed and/or vacant properties and the highest concentrations of foreclosures, delinquent loans, and subprime loans. This basic allocation was adjusted to ensure that every state received at least $5 million in funding.

Union County will receive $1,574,051, Newark will get $2,018,637, Essex County will receive $1,851,984 and Patterson will get $1,196,877 in addition to the $5 million awarded to New Jersey.


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1 comment for “NJ To Receive Federal Funds To Fight Foreclosure Crisis

  1. Dokemion
    September 10, 2010 at 1:07 pm

    Remember that you may not know everything about the property before you bid on it or put in an offer. In some states, the property is auctioned and you might not get the chance to see it before you buy. This could spell trouble if there is structural damage to the home. Keep in mind that most of the time those who are being evicted from their home will take the appliances. Some will even damage or vandalize the home, and most distressed home owners have no money to use to keep up a home, which means the home may have problems that will cost a lot to fix. Be sure you factor in the cost of potential repairs when considering how much of a bargain a particular property is going to be.

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