Indiana Asks for Comment on $84 Million Federal Foreclosure Funds

The amount of $84 million is Indiana’s portion of the $3.92 billion given to all the 50 states under the Neighborhood Stabilization Program (NSP) Funds to lessen the number of foreclosure homes and properties.

On its web site, the agency presented its proposal to allocate the funds in two ways: allocate $45 million to local government units for redevelopment of neighborhoods, and allocate $30.4 million to a program fund designed to help low-income families and individuals to acquire foreclosed homes.

IHDA Executive Director Sherry Seiwert said that the proposal presented on the web site was a result of consultations with housing industry associations, advocates, realtors, local government units and the Association of Cities & Towns.

The web site, www.ihcda.in.gov, will accept comments until November 26, 2008. Final proposals would be submitted to the U.S. Housing & Urban Development (HUD) by December 1, 2008, after which the IHCDA will start accepting applications for grants.

Communities can use the NSP funds for the following:

Establishment of schemes to acquire and redevelop foreclosed houses and properties that would be offered to low-income homebuyers using shared-equity loans Purchase and repair of foreclosed homes and abandoned properties that would be offered for sale, rent or development Formation of land banks for foreclosed homes Demolition of blighted buildings Redevelopment of vacant properties

Aside from the $84 million allocated to the state, 12 cities and towns will also be provided with a total of $68 million from the federal Housing & Urban Development Department for the acquisition of foreclosed houses and for the rehabilitation of blighted and abandoned properties.

By Cassiano Travareli