April 6, 2009 — The V.I. Housing Finance Authority is getting an extra $579,000 from the U.S. Department of Housing and Urban Development this year to assist in the redevelopment of abandoned and foreclosed homes.
The money is from the Neighborhood Stabilization Program, created to prevent neighborhoods from going to seed when a series of foreclosures leaves houses empty. NSP funds will be used to create housing, retain jobs or serve a limited clientele, and it will benefit persons whose household incomes do not exceed 120 percent of the area median income.
"Since the authority's mandate is to provide clean, safe and sanitary homeownership opportunities to persons with low and moderate income, the authority already has a list of persons that would qualify under this program," Gov. John deJongh Jr. said in a Government House statement.
This money is treated as a part of Community Development Block Grants, so the rules for CDBG funds apply except in a few places where the NSP specifies otherwise.
Ten percent of the funds will be used to help turn a foreclosed property into a homeless shelter.
The Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 to help redevelop abandoned and foreclosed homes. Congress appropriated $3.92 billion for the program nationwide. Funds have been allocated based on numbers of home foreclosures, homes financed with sub-prime loans, loan default and delinquency rates.
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