8:12 PM
Julio Barreto
State and local governments have an opportunity to provide some much needed relief to the economic impact of the mortgage crisis in neighborhoods but some obstacles and unintended consequences could mute this opportunity.As part of the Housing and Economic Recovery Act of 2008, Congress appropriated a total of $3.9 billion to be distributed to state and local governments by the Department of Housing and Urban Development (HUD). Called the Neighborhood Stabilization Program (NSP), provides funds for HUD to allocate in an expedited fashion to state and local governments in need of purchasing foreclosed and abandoned properties to prevent further deterioration in neighborhoods as a result of the current economic climate.The funds may be used principally for five activities:• To establish financing...
