HUD Homes / VA Homes News

U.S. Housing and Urban Development (HUD) Secretary Steve Preston approved a $37.4 million dollar plan in Kentucky this week that will help the state recover from the effects of high foreclosures and plunging home values under HUD’s new Neighborhood Stabilization Program (NSP).

HUD’s Neighborhood Stabilization Program was created as part of the Housing and Economic Recovery Act of 2008 and makes nearly $4 billion available for states and local communities experiencing high foreclosure problems and property abandonment issues.

The program lets State and local governments buy foreclosed homes at a discount and rehabilitate or redevelop them in order to respond to rising foreclosures and falling home prices.

State and local governments will be able to use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate properties; and to offer downpayment and closing cost assistance to low- and moderate-income homebuyers.