In September, the U.S. Department of Housing and Urban Development (HUD) allocated $3.92 billion in emergency funding through the Neighborhood Stabilization Program (NSP) to help states and localities acquire and redevelop foreclosed properties that might otherwise become sources of blight.
The funding was allocated based on need as determined by a variety of factors. Each state received a minimum of $19.6 million. The allocation formula received some criticism—Florida received more than California, even though it didn’t have as many foreclosures—but overall, the industry embraced the initiative. “HUD made an honest effort to get the program up and running,” says Sharon Price, director of policy at the Washington, D.C.-based National Housing Conference, an advocacy group. “The program’s success will depend on local ability to leverage other funds.”
Gina Ramos Montes, neighborhood and family services director for the City of Avondale, Ariz., understands that. “We’re looking at any and every program we can find to get people into these homes,” Montes says.
Price, for one, hopes more dollars are on their way. “We still haven’t figured out a solution to stopping the foreclosures,” she says.
Break Down:
The following six states have the highest percentage of loans starting foreclosure in the country. Here’s a look at how much money each state is scheduled to receive as part of the $4 billion Neighborhood Stabilization Program authorized by Congress last year to help areas hard-hit by foreclosures.
Indiana
$151.9 million
Nevada
$71.9 million
Florida
$541.3 million
California
$529.6 million
Ohio
$258.1 million
Michigan
$263.6 million
