Wednesday, July 21, 2010

Clear Language in Financial Service Reform Allows/Prioritizes Use of NSP Funding for Affordable Rental Housing Development.

In a prior post HERE I pointed out that the Financial Services bill had a provision that no longer required the purchase of foreclosed or abandoned homes in order to meet the 25% low income set aside for the NSP 3 program, or for unobligated or unexpended funding in NSP 1 and 2.  This opens the door in my mind to using those funds for rental assistance. 

I found one additional reference in the bill that signals CLEARLY that NSP money CAN be used to assist in rental development. Section 1497(a)(3)(D) reads:
"each ..government receiving grant amounts shall establish procedures to create preferences for the development of affordable rental housing for properties assisted with amounts under this Section."
Note that affordable rental development is not only ELIGIBLE, it MUST be prioritized by state and local government recipients.

Originally created and posted on the Oregon Housing Blog.

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