48 Florida cities to receive help from HUD

WASHINGTON – Oct. 23, 2008 – In Florida, 48 local and state governments will receive U.S. Department of Housing and Urban Development (HUD) funding earmarked for foreclosure relief under the Neighborhood Stabilization Program.

The Neighborhood Stabilization Program, authorized July 30, 2008, provides governments with a source of funding to respond to rising foreclosures and declining property values. More than 250 local cities and counties received grants, as well as all 50 states, including Puerto Rico and the District of Columbia.

Florida was allocated $541 million, which includes $91,141,478 awarded to the Department of Community Affairs, under the state’s Community Development Block Grant program, and approximately $450 million allocated directly to 48 local governments.

Eligible uses for the funds include:

• Buying foreclosed homes
• Buying land and property
• Demolishing or rehabilitating abandoned properties
• Offering downpayment and closing cost assistance to low- to moderate-income homebuyers
• Creating “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of property

All governments must obligate the money within 18 months. If not committed to a program, HUD will recapture the funds and return the money to the taxpayers.

For a complete list of Florida’s city and state governments receiving money along with amount of funds, local foreclosure rates and home abandonment rates (PDF format), go to: HUD Florida city grants.

©2008 FLORIDA ASSOCIATION OF REALTORS®

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