HUD ANNOUNCES $4 BILLION NEIGHBORHOOD STABILIZATION PROGRAM
The Department of Housing and Urban Development has established a program to provide grants to state and local governments to purchase abandoned and foreclosed properties. According to HUD, the $3.92 billion Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes. The purpose it to “stabilize neighborhoods and stem the decline of house values of neighboring homes.” Although the wording is unclear, it appears that these funds may be used to acquire property through eminent domain.
