The state of California is set to receive $145 million under the Department of Housing and Urban Development’s (HUD) Neighborhood Stabilization program, a provision of H.R. 3221, the “Housing and Economic Recovery Act of 2008.” This act was signed by the Bush Administration and became Public Law 110-289 on July 30.
The Neighborhood Stabilization program provides state and local governments with grants that can be used to acquire and develop foreclosed properties. In doing so, HUD hopes to prevent further decline in home values and reduce neighborhood blight. Eligible grantees must publicize action plan proposals by November 15 that they will then submit to HUD by December 1 in order to receive this funding.
U.S. Representative Barbara Lee (CA-09) acted as a large supporter for the Neighborhood Stabilization Program and worked diligently to include the $4 billion dollar program in H.R. 3221. In Congresswoman Lee’s district, Oakland alone will potentially receive $8.2 million for foreclosure mitigation efforts.
On October 16, Congresswoman Lee released a public letter urging State Governor Arnold Schwarzenegger to direct a greater portion of funding to communities in her district, such as Oakland, CA, that have been hit hardest by the foreclosure crisis. Under the Neighborhood Stabilization program, state governments can choose to appropriate additional emergency assistance to areas that have been most severely impacted by the foreclosure crisis in their action plan proposal.
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