$13.6 million Coming to Boston in Foreclosure Aid
Boston will get $13.6 million in the second round of Neighborhood Stabilization Program funding to assist the city’s foreclosure prevention and reclamation efforts.
The grant will allow the Department of Neighborhood Development to support redevelopment of up to 275 foreclosed homes in Dorchester, East Boston, Roxbury, Hyde Park and Mattapan.
Buyers of foreclosed properties in those neighborhoods may be eligible for low-interest loans or grants of up to $50,000 for purchase and renovation costs.
“This award accelerates our ability to impact the foreclosure challenges that were facing,” said Mayor Thomas M. Menino in a statement. “We’re making important progress, but our neighborhoods are still in danger.”
Boston was one of 482 applicants requesting over $15 billion from the U.S. Department of Housing and Urban Development in foreclosure funding. Since passage of the American Recovery and Reinvestment Act, the city has received nearly $280 million in formula and competitive grants as well as bond allocations.
The NSP initiative was created as part of the Housing and Economic Recovery Act of 2008, designed to boost local economies through the provision of resources to purchase and rehab foreclosed homes. Boston received $4.23 million in 2009 during the first funding round, and later received a matching grant from the state. The latest award brings Boston’s total federal foreclosure funding to more than $21 million.
The campaign seeks to allow Boston’s neighborhoods to recover from the nationwide foreclosure crisis through targeted programs that support existing homeowners while adding new buyers to the market, among other things. Under the umbrella of this initiative, DND has overseen the direct acquisition of 33 units of housing, and is in the process of negotiating the purchase of more than 100 others from banks.
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