9/8/2010- New Jersey’s 13th District Receives Federal Funding to Fight Foreclosure Crisis

For Immediate Release                                                           Contact: Erica Daughtrey

September 8, 2010                                                                 201-222-2828

Washington, D.C.-- On September 8, 2010, U.S. Department of Housing and Urban Development Secretary Shaun Donovan announced $1 billion in funding to help stabilize neighborhoods hard-hit by foreclosure in the third round of Neighborhood Stabilization Grants (NSP3). Specifically, Union County and the city of Newark will receive $1,574,051 and $2,018,637 respectively in NSP3 funding. These grants will provide targeted emergency assistance to state and local governments to acquire, redevelop, or demolish foreclosed properties.

“The NSP3 funding announced by Secretary Donovan will reinforce local efforts to confront the effects that foreclosures have on our communities,” said Congressman Sires. “This funding will be a critical component in our fight to stabilize and rebuild our housing markets.”

This round of NSP funding was provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act enacted in Congress in June 2010. To date, there have been two other rounds of NSP funding: the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion. Like those earlier rounds of NSP grants, these targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. HUD will issue an NSP3 guidance notice in the next few weeks to assist grantees in designing their programs and applying for funds.

###