Menendez, Lautenberg Applaud Nearly $12 Million In Additional Funding For Nj Communities Affected By Foreclosures

Funding awarded as part of mortgage foreclosure assistance provision in Wall Street Reform Bill that the NJ Senators helped pass

Senators also applaud new initiative where foreclosed homes will be sold at a discount, fixed up, and then sold to moderate- and middle-income homebuyers

WASHINGTON, DC – September 9, 2010 – (RealEstateRama) — New Jersey’s U.S. Senators, Robert Menendez and Frank Lautenberg, today applauded the U.S. Department of Housing and Urban Development’s announcement that it has awarded New Jersey communities $11,641,549 million in additional funding to help minimize the negative effects of the foreclosure crisis. This funding will be distributed through HUD’s Community Development Block Grant (CDBG) Neighborhood Stabilization Program (NSP) third round of grants. The grants will be used to help communities purchase foreclosed homes, land and property, demolish or rehabilitate abandoned property, assist low- and middle-income homebuyers with down payment or closing costs, and manage the use of vacant land.

“Foreclosures don’t just affect the New Jersey family that loses its home, they create a ripple effect that brings down property values in the surrounding communities and harms neighboring families,” said Senator Menendez. “With the Wall Street reform bill we passed, we have properly regulated our financial markets and provided vital assistance to struggling homeowners. This additional funding for New Jersey will help families hold on to their homes, revitalize our communities, and change the direction of our economy.”

“Homeowners across our state have felt the impact of declining home values due to nearby foreclosures and abandoned properties. This infusion of federal funding will allow New Jersey communities to take action and rehabilitate blighted properties. Our state, counties and cities must use this investment to help ensure that our neighborhoods remain vibrant places to live, work and raise families,” Sen. Lautenberg said.

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 allocated additional funding for the Neighborhood Stabilization Program (NSP), which was originally established under the Housing and Economic Recovery Act of 2008. The NSP was created with the purpose of helping stabilize communities that have suffered the impact of foreclosures and abandonment as a result of the mortgage crisis by facilitating the purchase and redevelopment of foreclosed and abandoned properties. For this third round of funding, grants were awarded to the states and local government with the greatest need for neighborhood stabilization funding – the communities with the highest rate of foreclosed and/or vacant properties and the highest concentrations of foreclosures, delinquent loans, and subprime loans. This basic allocation was adjusted to ensure that every state received at least $5 million in funding.

For more information about the Neighborhood Stabilization Program, please visit: http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/

The $11,641,549 million in funding for the state of New Jersey announced today will be distributed as follows:

UNION COUNTY – $1,574,051
PATERSON – $1,196,877
ESSEX COUNTY – $1,851,984
NEWARK – $2,018,637
NJ STATE – $5,000,000

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