Thursday, January 15, 2009

City Can Seek HUD Funds

Plainfield has a chance to take part in a federal program that offers direct help to state and local governments that are facing high foreclosure rates.

To learn more about the Neighborhood Stabilization Program, click here.
The news came at the end of a long City Council agenda session. Vincent Cangelosi of Faith, Bricks and Mortar said the city has until Feb. 6 to apply for funding. According to a HUD press release, the funding can be used to "acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to moderate-income homebuyers."
The opportunity is based on data that pinpoints communities with high foreclosure rates. The program will also require counseling for families receiving homebuyer assistance.
The program was launched with passage last year of the Economic Recovery Act of 2008. On Sept. 26, 2008, U.S. HUD Secretary Steve Preston allocated a total of $3.92 billion "to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures," a press release said. New Jersey's portion is $51.5 million.
The City Council meets at 8 p.m. tonight to vote on applying to the program, among many other matters.
--Bernice Paglia


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