HUD Awards $4B to Buy and Fix Foreclosed Properties

The Department of Housing and Urban Development has completed the process of allocating $4 billion to states and communities for the purchase and renovation of foreclosed properties. Another $2 billion in neighborhood stabilization funds will available soon."These funds will be used to buy up and rehabilitate vacant foreclosed homes and resell those homes with affordable mortgages," President Barack Obama said. On Friday, HUD said it awarded the last $731 million of the $4 billion in funds that Congress approved last July as part of the Housing and Economy Recovery Act. These funds were allocated by formula to states and local communities hardest hit by the housing crisis. HUD is working to execute the grants to the 309 state, city and county recipients by the end of this month so the funds can be disbursed in April. The massive economic stimulus bill Congress passed in February provides another $2 billion in neighborhood stabilization funds. These funds will be awarded through a competitive process. HUD is expected to solicit proposals by May 3.