HUD Signals Foreclosure Moves Ahead Including Projected $1 Billion Recapture of NSP 1 Funding.

Interesting press release HERE. Some key excerpts:

The Administration also announced plans to reallocate funds awarded through NSP1 that have not yet been committed to specific projects, in order to drive more funding to hardest hit communities....[The] Administration plans to work with Congress on new foreclosure counseling efforts to help homeowners facing foreclosure stay in their homes

Both the reallocation of NSP1 funds and a third round through NSP3 would help to expand efforts to clear blighted properties...HUD plans to explore with Congress a number of technical changes that could improve the flexibility and impact of the NSP program if a third round of funding can be secured. HUD will also work with Congress to help local grantees access more of the administrative capacity needed for effective implementation and, as part of this effort, to secure additional funds for technical assistance (TA) as well.

Local communities would design and set their own program targets, but HUD would provide options for implementation. To ensure best use of taxpayer dollars, grantees would, based on NSP1 performance, either be required to:

    * Work with a subgrantee – an entity that is granted the legal obligations and authority to implement NSP on behalf of the grantee;
    * Sign a Technical Assistance agreement with HUD; or,
    * Work in a consortium with a high capacity lead grantee.

In order to reallocate NSP1 funding, HUD would follow guidelines set forth in HERA, which says that states and units of general local government have no more than 18 months to dedicate NSP1 funds to specific projects. The Department estimates that 70% of the $3.9 billion in NSP1 funds would be obligated by the 18-month deadline this fall, in September and October 2010, for a recapture of approximately $1 billion. Following a 30 day review period, funds that grantees have not yet committed to specific projects will be reallocated either to new grantees or as additional funds for first round grantees.

[My prior post showing the April status of NSP 1 funds report for Oregon is HERE].

Originally created and posted on the Oregon Housing Blog.