Briefing: Foreclosure Prevention Funds
In an attempt to counteract rising foreclosures and declining home values across the state, Gov. Deval Patrick recently announced that more than $5 million in federal funds will be used to assist local neighborhoods by boosting stabilization programs.
What will the money do?
The $5.1 million in federal funding will be used to acquire and rehabilitate foreclosed properties, allowing them to be re-occupied with new renters or homeowners.
Where is the funding coming from?
The federal aid comes from the Neighborhood Stabilization Program, which is a division of the U.S. Department of Housing and Urban Development. The program was funded through the Housing Economic Recovery Act, and represents a portion of the $43.4 million that Massachusetts was awarded in 2009.
Who can access the funding?
The Neighborhood Stabilization Program is run by the state’s Department of Housing and Community Development. The funds are available to municipalities and developers (both for-profit and nonprofit) to purchase abandoned, vacant or foreclosed properties at a discounted rate.
How is Central Massachusetts affected?
Marlborough originally received a $400,000 grant in 2009 and will receive an additional $500,000. Half of those funds will be reserved for families whose household income is 50 percent less than the median income for the area. Framingham originally received $700,000 in 2009 and will receive an additional $500,000 to target middle-income and extremely low-income rental homes and homeownership opportunities. Leominster will receive $1.3 million through the Twin Cities CDC to acquire and demolish a portion of the Whitney Building. The project will also create 40 low-income residential units in its place. Worcester originally received more than $2.3 million in 2009 and will receive an additional $700,000 to demolish a former factory on 95 Grand Street and replace it with a mixed-use development. The city will also receive more than $1.3 million to redevelop 5 May Street into very low-income rental units.
Click here to learn more about this foreclosure prevention funding.
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