Today, the Department of Housing and Urban Development (HUD) announced it will allocate a total of $3.92 billion to states and particular communities hit hard by the effects of the foreclosure crisis. Specifically, $2,153,431 was given to Jersey City, $3,406,849 to Newark, and $2,601,755 to Union County. The state of New Jersey will receive $51,470,620 that can be used in other communities across the state as well. The grants will be provided through the Department's Neighborhood Stabilization Program (NSP) which targets emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might, if left alone, become sources of abandonment within their communities.
"This grant comes at a critical time for our communities in New Jersey.This money will bring them the help they need to stabilize their neighborhoods and rebuild," stated Congressman Sires. In particular, state and local governments will be able to use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low-to moderate-income homebuyers.
Communities, like Jersey City, Newark, and Union County were chosen by HUD because of the alarming rate of the number/percent of foreclosures, subprime mortgages and mortgage defaults and delinquencies.
"The housing crisis has unfortunately hit the 13th District severely. In addition to providing the necessary relief needed now to New Jersey homeowners, I'm pleased to see that the NSP will also seek to prevent future foreclosures by requiring housing counseling for families receiving homebuyer assistance," concluded Congressman Sires.