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$27 Million Solution to Abandoned and Foreclosed Properties

The downturn in the U.S. housing market and subsequent financial credit crunch has resulted in record foreclosure filings in Palm Beach County. These foreclosed properties have the potential to become sources of abandonment and blight within their communities. In an effort to stabilize neighborhoods and stem the decline of house values of neighboring homes the U.S. Department of Housing and Urban Development (HUD) recently unveiled it’s Neighborhood Stabilization Program (NSP).

NSP will provide funds to state and local governments to address the problem of abandoned and foreclosed properties.  HUD will allocate to Palm Beach County $27 million in NSP funds which will be administered by the Department of Housing & Community Development.

Eligible uses of the NSP funds include:

• establishment of financing mechanisms to purchase and redevelop foreclosed homes and residential properties;
• purchase and rehabilitation of abandoned or foreclosed residential properties; the establishment of land banks for foreclosed homes;
• demolition of blighted structures; and
• redevelopment of demolished or vacant structures.

All uses of funds must benefit households earning no more than 120 percent of the area median income for Palm Beach County. Contact the Palm Beach County Department of Housing & Community Development at (561) 233-3600 for area median income information.

Palm Beach County’s Commission on Affordable Housing sponsored a workshop on October 23, 2008 to discuss the Neighborhood Stabilization Program and to solicit public input. Additional public input can be submitted to the Palm Beach County Department of Housing & Community Development until November 17, 2008. Subsequently, the county’s NSP Program will be developed through the direction of the Board of County Commissioners and submitted to HUD by the application deadline of December 1, 2008.