The Neighborhood Stabilization Program addresses the rising number of foreclosures across the United States. Governmental entities of all types--states, counties and cities--have received an allottment of money from the U.S. Department of Housing and Urban Development based on foreclosure rates.
About $4 billion was appropriated under Title III-Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes in the “Housing and Economic Recovery Act of 2008” for the CDBG Neighborhood Stabilization Program. Hidalgo County is the only jurisdiction south of San Antonio to receive a portion of these funds. The largest allocations in the state are going to Harris County ($14.9 million) and Houston ($13.5 million). In addition to the allocations for specific governments, the state of Texas received $101.9 million to allocate to entitlement areas.
Hidalgo County received $2.8 million to address the rising number of foreclosures. The funds can be used for the following eligible activities:
To create financing mechanisms to purchase and redevelop abandoned and foreclosed properties through soft-second loans, loan loss reserves, and shared-equity loans;
To purchase and rehabilitate abandoned and foreclosed homes to re-sell, rent or redevelop;
To establish land banks of foreclosed homes;
To demolish blighted structures;
To redevelop or demolish vacant properties;
To make public facility improvements;
To provide counseling for those benefitting from Neighborhood Stabilization Program funds;
To provide direct homeownership assistance;
And to construct and rehabilitate commercial and industrial buildings.
Money cannot be used to prevent foreclosure, demolish non-blighted structures or purchase homes that are not abandoned or foreclosed upon.
A copy of plan is also available at the Urban County Program offices for view. Please call (956) 787-8127.