FUNDING WILL ALLOW DU PAGE COUNTY TO REHABILITATE FORECLOSED AND ABANDONED HOMES

The U.S. Department of Housing and Urban Development (HUD) has allocated close to $5.2 million in funding to DuPage County, through the federal Neighborhood Stabilization Program (NSP), which will address the effects of abandoned and foreclosed properties throughout DuPage. 

DuPage County Board Member Debra Olson (District 4), Chairwoman of the County’s Strategic Planning Committee, notes that affordable workforce housing is a priority in the county’s strategic plan. 

“One of the priorities listed in our strategic plan is affordable workforce housing, and we are addressing this issue on a number of levels, and with a number of community partners,” said Olson.  “This five-year project will bring $5.2 million in Federal monies, which will help purchase and rehabilitate blighted foreclosed properties and get them back onto the market.”

Under the NSP, homes must be purchased at an average of 15 percent under market value.  Any program income will be recycled back into the program until 2013, and then it will go back to the United State’s Treasury.  Some of the funds will also be used for housing counseling activities, which the DuPage Homeownership Center will be offering, notes Olson.

There are currently 2,685 foreclosed properties in DuPage County, and only 1000 are owned by banks.  That leaves over 1500 properties which need public assistance in order to make the necessary improvements.  This grant will assist in the improvement of some of those properties.

Kyle Gilgis (District 3), DuPage County Board Member and Chairwoman of the County’s Development Committee, says the funding provided by NSP will help communities throughout DuPage.

“These funds will help put foreclosed properties back on the market,” said Gilgis.  “I look forward to implementing this important program, which will have a positive effect on our communities.” 

The NSP program will also assist in the:  establishment of financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties; purchase and rehabilitation of abandoned and foreclosed homes and residential properties; establishment of land banks for homes that have been foreclosed upon; demolition of blighted structures; and redevelopment of demolished or vacant properties

HUD’s new Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.

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