The Illinois (http://www NULL.illinois-foreclosure-homes NULL.com/) Department of Human Services (IDHS) and the U.S. Department of Housing and Urban Development (HUD) have signed the Neighborhood Stabilization Program (NSP) agreement aimed at helping distressed neighborhoods reduce the number of foreclosure homes (http://www NULL.bankforeclosuressale NULL.com/).
The program will provide emergency assistance of $53 million to non-profit organizations, developers and the local government to acquire, rehabilitate or resell abandoned and vacant foreclosure homes that become eyesores within communities.
IDHS has partnered with the Illinois Department of Commerce and Economic Opportunity (DCEO), Illinois Housing Development Authority (IHDA) and affordable housing advocacy groups to rehabilitate neighborhoods and assist in the housing needs to reduce the number of foreclosure homes that have caused communities to deteriorate.
Illinois is the sole state that will use as much as 40 percent of the allocated HUD grant for neighborhood developments to provide affordable housing for low-income families and accessible homes to persons with disabilities.
Under the program, IDHS will allocate funds to neighborhoods with high number of foreclosure homes, provide rental housing units that are affordable and opportunity for low-income families and those with disabilities to own properties.
The program is part of a federal campaign to rehabilitate communities showing signs of deterioration due to the surge of foreclosure homes by providing opportunities to rent or own affordable homes.
The IHDA is tasked to provide mortgage finance and housing development expertise and will work with IDHS to start rehabilitating foreclosure homes to be used by low-income families and people with disabilities.
According to Carol L. AdamsSta, IDHS secretary, foreclosure has a way of wreaking havoc to homeowners and communities and caused the rapid deterioration of areas affected.
She added that IDHS and other state agencies will start taking measures to address the problems brought about by foreclosure properties (http://www NULL.findforeclosureproperties NULL.com/) by providing the needed resources to help neighborhoods recover from the foreclosure crisis (http://www NULL.eforeclosuremagazine NULL.com/category/foreclosure-crisis).
The program, made possible by the Housing and Economic Recovery Act of 2008, will also allow grant recipients to develop financing products to assist homebuyers in low and moderate income levels to acquire foreclosed homes (http://www NULL.foreclosuredeals NULL.com/). Qualified homebuyers are those with 120 percent area median income established by HUD.
Illinois is currently accepting proposals for the federal program. It will also host several workshops to promote awareness of the program and assist potential applicants.