| (Boardman, Ohio November 30, 2008) The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. Under this program, Youngstown, Ohio, with the highest foreclosure rate in the state (over 14%) is slated to receive slightly more than $2.7 million of the $117 million in grant money being made available the the state. Authorized under Title III of the Housing and Economic Recovery Act of 2008, HUDs new Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. "To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way," said U.S. Housing and Urban Development Secretary Steve Preston. "Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact. Now the real work begins and HUD stands ready to support these States and communities as they work to stabilize their neighborhoods."
Youngstown can use it's Neighborhood Stabilization Program grant to: - Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
- Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
- Establish land banks for foreclosed homes;
- Demolish blighted structures;
- Redevelop demolished or vacant properties
"We're in a 'no win' situation here in the Mahoning Valley and across the nation," said Betsy Johnson, Broker and Vice-president of RE/MAX Valley Real Estate. "Everybody is losing. Homeowners already facing foreclosure are losers; homeowners who, while still making their payments, are seeing the value of their home decline to less than what they owe are losers; homeowners trying to sell but finding themselves in short sell positions because there's too many foreclosed homes on the market are losers; banks afraid to make loans for homes and businesses are losers: the businesses who can't get these loans and are being forced to lay-off more employees or even closing are losers; victims of rising unemployment swelling the ranks of homeowners who can't make their mortgage payments and eventually giving their keys back to the bank are losers. And so it continues. Losers creating more losers." "The ever widening loop of this recessive cycle must be broken," Johnson concluded. "And the NSP grant is a huge step in that direction. Mahoning Valley REALTORS hope that the city puts the money to good use quickly and wisely."
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