Governor Doyle Announces $39 Million to Stabilize Neighborhoods Hard-hit by Foreclosure

MADISON, WI – September 30, 2008 – (RealEstateRama) — Governor Jim Doyle today announced $39 million to help redevelop foreclosed properties throughout Wisconsin in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The effort is part of the Neighborhood Stabilization Program within the Department of Housing and Urban Development (HUD).

“Foreclosures have a devastating impact on neighborhoods and the state’s economy and we must do all we can to not only prevent foreclosures but also help rehabilitate impacted neighborhoods,” Governor Doyle said. “These Neighborhood Stabilization funds will allow us to take our statewide foreclosure efforts to an even higher level.”

The neighborhood stabilization grant can be used to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low- to -moderate income home buyers. The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving home buyer assistance.

In determining Wisconsin’s allocation, HUD followed Congress’s direction that grants be targeted to areas based on the number and percent of foreclosures, subprime mortgages, and mortgage defaults and delinquencies. The grant was a part of a $3.92 billion announcement by HUD that went out to all states and to communities hardest hit by foreclosures.

WHEDA is an independent state authority that works with lenders to provide low-cost financing for housing and small business development in Wisconsin. For more information on WHEDA’s housing programs call (800) 334-6873 or visit WHEDA’s website www.wheda.com.

HUD is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. More information about HUD and its programs is available on the Internet at www.hud.gov.

Tony Hozeny, Department of Commerce, 608-267-9661
Carla Vigue, Office of the Governor, 608-261-2162
Kate Venne, WHEDA, 608-266-8655

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U.S. Department of Housing and Urban Development (HUD) is the nation’s housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development, and enforces the nation’s fair housing laws.

Contact:

Brian Sullivan
(202) 708-0685

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