R.I. receives $6.3M to stabilize neighborhoods hard-hit by foreclosures

U.S. HOUSING AND URBAN Development has awarded Rhode Island $6.3 million to reverse the effects of the foreclosure crisis in local communities as part of a third round of funding under the Neighborhood Stabilization Program. / BLOOMBERG NEWS FILE PHOTO
U.S. HOUSING AND URBAN Development has awarded Rhode Island $6.3 million to reverse the effects of the foreclosure crisis in local communities as part of a third round of funding under the Neighborhood Stabilization Program. / BLOOMBERG NEWS FILE PHOTO

PROVIDENCE – Rhode Island neighborhoods that were hit hard by the foreclosure crisis have been awarded $6,309,231 million in funding, said U.S. Housing and Urban Development on Wednesday.

The grants announced yesterday represent a third round of funding through U.S. HUD’s Neighborhood Stabilization Program; Rhode Island has already received $19.6 through the program. The funds will provide targeted emergency assistance to help local communities “acquire, redevelop or demolish” foreclosed properties, the organization said.

Providence was specifically allotted $1,309,231 and the state will receive $5 million.

“These grants will build on local efforts to reverse the effects these foreclosed properties have on their surrounding neighborhoods,” said Shaun Donovan, secretary of U.S. HUD. “We wanted to make certain that we target these funds to those places with especially high foreclosure activity so we can help turn the tide in our battle against abandonment and blight. This investment will reduce blight, bolster neighboring home values, create jobs and produce affordable housing.”

- Advertisement -

The NSP 3 allotment will allow grantees an exclusive 12 to 14 day window to bid on properties, as allowed under the First Look partnership with the National Community Stabilization Trust, announced by Donovan last week. First Look aims to cut in half the traditional 75-to-85 day process it takes to re-sell foreclosed properties and increase the likelihood that the properties communities choose to buy are strategically chosen.

The funding announced Wednesday by the federal government is provided under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The two other rounds of NSP funding were provided under the Housing and Economic Recovery Act of 2008, allotting $3.92 billion in national funding, and the American Recovery and Reinvestment Act of 2009, appropriating $2 billion.

No posts to display