August 18, 2009
Approximately $384.5 million has been allocated to counties in California, and approximately $145 million to the State of California Department of Housing and Community Development (HCD) for distribution to smaller jurisdictions for a Neighborhood Stabilization Program (NSP).
The funds can be used to:
HUD requires that NSP funds be targeted to communities with high rates of foreclosure, high rates of subprime loans, and the likelihood of future high rates of foreclosure.
An additional $1.93 billion nationally was authorized by American Recovery and Reinvestment Act f 2009 (ARRA) for NSP2 to be allocated on a competitive basis. HCD has applied for $21 million in conjunction with eight cities. Larger jurisdictions will also be completing for grants from HUD.