HUD Allocates $4 billion for Foreclosure-hit Neighborhoods

The Department of Housing and Urban Development (HUD) has allocated $3.92 billion in grants to help state and local governments rehabilitate neighborhoods becoming blighted by abandoned foreclosed homes. Besides quickly falling into disrepair, the homes become targets for vandalism and arson.

Coming out of HUD's new Neighborhood Stabilization Program (NSP), the money can be used by states and local governments to purchase foreclosed homes at a discount and to rehabilitate or redevelop them. Additionally, the money can be used to offer downpayment and closing cost assistance to low- to moderate-income homebuyers.

"Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact," said HUD Sec. Steve Preston in a press release. "Now the real work begins and HUD stands ready to support these States and communities as they work to stabilize their neighborhoods."

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