Monday, January 26, 2009

Colorado State NSP plan approved

The plan for 34 million dollars in state funds granted to the Colorado Division of Housing has been approved. The division's plan is one of only 8 state plans approved so far by HUD.

In late December, Colorado’s HUD region said it expected to find out “soon” if it would receive $19 million in foreclosure-relief funds for the cities of Denver, Colorado Springs and Aurora, as well as Adams County in metro Denver.

Those fund requests break down as follows: Denver ($6 million), Adams County ($4.6 million), Aurora ($4.5 million) and Colorado Springs ($3.9 million).

HUD already OK’d $34 million in foreclosure-relief funds late last year for the entire state of Colorado, which will come from the housing department’s $3.92 billion Neighborhood Stabilization Program (NSP) created by the Housing & Economic Recovery Act of 2008.

The program provides funds to state and local governments to buy and rehabilitate or redevelop foreclosed properties that might otherwise succumb to abandonment and blight.

Dollars earmarked for Colorado will pay for buying and upgrading distressed multifamily properties such as apartments, duplexes and condos as well as purchasing and fixing up abandoned and foreclosed single-family homes.

The money also will be used to demolish blighted properties, and provide counseling to new homebuyers.

The state will allocate the HUD funds, and community development groups, with the help of elected officials, will use the money.

NSP money can be combined with HUD’s Community Development Block Grant (CDBG) Program funds as well as other funding resources.

The plan can be found here: http://dola.colorado.gov/cdh/NSP.htm