U.S. Rep. Kendrick B. Meek Responds to Decision by Dept. of U.S. Housing and Urban Development Releasing Nearly 3 Million Dollars for Neighborhood Stabilization Program to the City of North Miami

 

WASHINGTON, DC – Today the U.S. Department of Housing and Urban Development announced that nearly 3 million dollars will be allocated to the City of North Miami through the Neighborhood Stabilization Program to assist the city stabilize neighborhoods hard-hit by the foreclosure crisis. 

The funding is provided through HUD's Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008. 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.

"When it comes to the foreclosure crisis, South Florida is ground zero and this influx of federal dollars to our local community will help the healing begin in our suffering neighborhoods," said Congressman Kendrick Meek.  "These funds will serve as the seed money to allow our neighborhoods to flourish again and enable families to rebuild their lives in a familiar setting.  The foreclosure crisis has led to an economic meltdown and an increase in criminal activity in these areas, but it has also ruined families and destroyed livelihoods and now more than ever, we must help put the pieces back together for these communities."

The City of North Miami can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer a down payment and closing cost assistance to low- to moderate-income homebuyers (household incomes not exceed 120 percent of area median income). In addition, these grantees can create "land banks" to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.

In determining the allocations announced today, HUD followed Congress's direction that grants be targeted to areas based on the number/percent of foreclosures, subprime mortgages and mortgage defaults and delinquencies. HUD took a data driven approach to this process, relying on numerous data sets from government agencies and private sources.

HUD also will issue specific rules that will assist communities in the administration of this new program and to ensure, as Congress directed, that these grant funds be obligated for specific activities within 18 months.

The NSP Program also seeks to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance. In addition, the Agency seeks to protect future homebuyers by requiring States and local grantees to ensure that new homebuyers under this program obtain a mortgage loan from a lender who agrees to comply with sound lending practices.

U.S. Rep. Kendrick B. Meek represents the 17^th Congressional District of Florida which includes parts of Miami-Dade and Broward Counties. He serves as the lone Florida Democrat sitting on the House Committee on Ways and Means, and also sits on the House Armed Services Committee.

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