The Neighborhood Stabilization Program - by Tom Brewer

The Neighborhood Stabilization Program

The Obama Administrations’s American Recovery and Reinvestment Act of 2009 made it through the house and was signed by the president in mid February 2009. Part of included an initiative to help improve the condition of many of the country’s neighborhoods. $2 billion has been allocated to help aid in the Neighborhood Stabilization Program.

The purpose of this program is to provide funding to states and local governments to help them offset and, hopefully stem the tide of recent foreclosures that have left many areas completely deserted. These areas were, just a couple of years ago, flourishing communities full of promise.

The burdened economy hit the real estate industry particularly hard. Banks and lenders literally shut their doors after years, sometime decades of service, leaving mortgage holders scrambling to find ways to stay in their homes. Many of these homeowners also bear a part of the blame for the real estate collapse but point the finger now doesn’t do anyone any good.

The Neighborhood Stabilization Program allows states and cities that are recipients of the funds to use them to offer grants and options for the rehabilitation and purchase of foreclosed homes. A quarter of the funds must be used to assist individuals with an annual household income of less than 50% of the area’s median income level.

The country’s real estate market is in limbo in some cities but in others it has started to make significant steps in the right direction on the road to recovery. The Arlington and Mansfield real estate area has done well during the economic crisis but some areas could certainly benefit from more home sales.