November 03, 2008
An opportunity has arisen for developers to fund affordable housing projects that will serve to stabilize neighborhoods affected by the foreclosure crisis. HUD has made available the federal register notice of the allocation of $3.92 billion in Neighborhood Stabilization Program funds to individual jurisdictions, and the rules that will apply to the allocation of these funds. These funds were originally appropriated in the Housing and Economic Recovery Act signed into law on July 30, 2008. Community Development Block Grant rules apply to NSP funding, with exceptions for NSP goals and requirements as described by HERA and detailed in the federal register notice.
The federal register notice provides information on dollar amounts of allocations to each jurisdiction. Funds were allocated to jurisdictions based upon the percentage of foreclosures, percentage of properties in default and percentage of subprime loans in each jurisdiction. Each grantee that receives these funds will develop its own program funding priorities and income targeting, within the requirements of HERA and the Federal Register Notice. Each grantee must submit an application for these funds and meet other requirements detailed in the Federal Register Notice by December 1, 2008.
To take advantage of this one-time funding allocation and possibilities for funding affordable housing projects, our development partners should contact Ballard Spahr’s Housing Group. The group is prepared to answer any questions you may have about this new program and its implementation. For more information, contact Mary Grace Folwell at [email protected] or 202.661.7605.
Click here for a copy of the draft federal register notice available on HUD’s website.
Click here for a summary of the provision in HERA allocating funds for abandoned and foreclosed properties.
Ballard’s Housing Group comprises more than 70 attorneys who represent a broad range of clients in every major area of housing law practice. Our mission is to provide comprehensive legal services and innovative solutions to enable our clients to develop, finance and preserve affordable and market-rate housing nationwide.
Copyright 2008 Ballard Spahr Andrews & Ingersoll, LLP. Used by permission.