Neighborhoods First!

April 27th, 2009

HUD’s Neighborhood Revitalization grant application due out 5/3/09

Even in a region as picturesque as Sonoma County lenders are taking back about 40 homes per week. In once thriving neighborhoods “For Sale” signs and brown lawns are rampant. And government attempts to prod lenders to modify mortgages are slow and spotty. Foreclosure remains the most likely outcome, for most homeowners who cannot make payments.

Foreclosures Hurt Neighborhoods

Foreclosure

Last year HUD’s first round of Neighborhood Revitalization funding allocated $384.5 million to 46 cities and counties in California and $145 million to the State of California so municipalities could make a dent in neighborhood blight and help prevent foreclosures. Through a complex system, the State chose where to make these funds available, so that our most distressed cities and counties:

  • Purchase and rehabilitate homes to sell, rent or redevelop
  • Create land banks for homes that have been foreclosed upon
  • Demolish blighted structures
  • Redevelop demolished or vacant properties
  • Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties.

Non-profits eligible for round 2

In addition to these municipal recipients, HUD’s round 2 “makes available another $2 billion of NSP funding to State, local governments, non-profit entities, or consortia of non-profit entities for similar anti-blight and stabilization efforts.” Up to $50 million of this funding is for capacity building for qualified organizations, money to help improve the organization or city. The remaining funds will go “programmatic funding” requiring “complete citizen participation before submitting to HUD.”  This sounds like the additional funding will go to purchase properties for eligible homeowners. HUD’s site says the NOFA (Notice of Funding Application) will be out by May 3 and the deadline is September 1, 2009.

More information on grants.gov or at HUD’s website http://www.hud.gov/recovery/nspg.cfm. For more information on all Recovery Act Funding go to www.grants.org click on grants Browse Grants By Category and then click on Recovery Act.

This will likely be a very competitive process, and the dollars may still be awarded to cities with the highest foreclosures, but for successful public-private housing partnerships, this might be one of the best ways to access ARRA funds quickly.

Fund Development, Grant Sources, Grant Writing Resources , , , , , ,

  1. Alex
    May 10th, 2012 at 05:43 | #1

    This is a great post. Thank you and Google for chance to read it.

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