Salem – New federal dollars will help reverse the state’s housing crisis with funding from HUD’s Neighborhood Stabilization Program (NSP) phase two.
A consortium lead by Oregon Housing and Community Services received a grant for $6.8 million in Recovery Act funds from the federal government. The funds will allow the agency to administer the NSP, enacted to help communities stabilize neighborhoods and rebuild economies.
The NSP is a key part of the Obama Administration’s comprehensive approach to address the national housing crisis, according to HUD Secretary Shaun Donovan.
Oregon’s application was one of 56 approved, and the only award in the Northwest United States. HUD received more than 480 applications during the competitive process.
“High rates of foreclosure can have many negative consequences, beyond declining property values and blight,” OHCS Director Victor Merced said. “Reductions in tax revenues can hamper local government’s delivery of needed services.”
Congress enacted phase one of the NSP to help communities during the housing crisis and recession. The program provides funds to community consortia and nonprofit developers dedicated to turning vacant homes into community assets.
OHCS will be the lead agency in this effort, which includes a consortium of counties and cities located within the qualifying areas:
• Clackamas County
• City of Bend (representing Crook, Deschutes and Jefferson Counties)
• City of Medford (representing target areas in Jackson County)
• City of Salem (representing target areas in Marion County)
• Washington County
Additional partners include the Department of Human Services and non-profit organizations.
“The funds will be used to help with down payments, mortgage buy-downs, and closing costs for low- and moderate-income families to purchase a foreclosed home,” Merced said. The agency projects the funding will impact nearly 150 homes.
“Funds will also help developers and nonprofit agencies to acquire and rehabilitate abandoned or foreclosed homes, providing safe, affordable housing for hardworking Oregonians,” Merced said.
OHCS proposes to use a portion of the NSP phase two award to develop permanent supportive housing for people experiencing homelessness, and to support Gov. Ted Kulongoski’s 10-year Plan to End Homelessness in Oregon.
As of December, approximately $2 million in NSP phase one funds have been obligated throughout the state’s larger cities and urban counties. OHCS staff has obligated another $400,000 in NSP loan funds throughout Oregon’s small cities and rural areas.
“These new NSP dollars will help to stabilize local housing markets, reduce vacancy rates, and improve homes,” Merced said.
Contact: Rich Malloy, (503)986.6142, rich.malloy@state.or.us
Dona Lanterman, (503) 986-2120, dona.lanterman@state.or.us
Lisa Joyce, (503) 986.0951, lisa.joyce@state.or.us
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