March 13, 2009
Some local communities hit hard by the foreclosure crisis may soon see fewer “for sale” signs in their neighborhoods.
The County Department of Housing and Community Development announced today that it has received more than $5.1 million in federal funds from the Neighborhood Stabilization Program. The program was created as part of the Housing and Economic Recovery Act, which was passed by Congress last July to help local and state agencies deal with the foreclosure crisis.
At least a quarter of the families assisted must be at no more than 50 percent of the area median income (AMI) level, which is currently $39,500 for a family of four. The remaining funds can be used to help families up to 120 percent of the AMI level, which is $94,800 for a family of four.
The funds must be obligated within 18 months of receiving them and will be used for several projects:
· A homebuyer program that provides up to a $50,000 low-interest loan to a family to buy a foreclosed home.
· A program for nonprofit agencies and developers that want to buy and rehabilitate foreclosed homes to operate as affordable rental properties for families at no more than 50 percent of the AMI level.
Buyers may also receive up to an additional $12,500 to pay for energy efficiency and conservation projects.
For more information about affordable housing, please visit the Housing and Community Development Web site at www.sdhcd.org