News Releases for January 2009
January 22, 2009
For further information, please Contact the Governor's Office
State Receives $19.6 Million for Neighborhood Stabilization Program
North Dakota will receive $19.6 million from the U.S. Department of Housing and Urban Development as part of the Neighborhood Stabilization Program passed by Congress last fall to help communities deal with the housing crisis.
The North Dakota Department of Commerce Division of Community Services developed the application for the funds in December and received word last week that the application was approved. As part of that application, Commerce specified how individual communities would use the grants based on needs.
Federal rules require that funds be allocated to areas of greatest needs based on foreclosures, sub-prime loans and the likelihood of additional foreclosures. The money will be distributed as follows:
| Fargo: | $4,771,600 |
|---|---|
| Grand Forks | $4,380,000 |
| Bismarck | $2,000,000 |
In addition to the community distributions, the North Dakota Housing Finance Agency will administer $6.66 million for a number of cities and their surrounding areas, including Minot, West Fargo, Mandan, Jamestown, Williston, Grafton, Wahpeton, Lincoln, Devils Lake, Valley City, Casselton, Dickinson and the four Indian Reservations communities throughout the state. Applications for these funds were due Jan. 15, and Housing Finance Agency is currently evaluating these applications.
Eligible uses for the funds include:
- Purchasing and rehabilitating foreclosed and/or abandoned properties and reselling them to low, moderate and middle-income households.
- Demolishing blighted structures in low, moderate and middle income areas to address health and safety issues.
- Redeveloping demolished or vacant properties to create affordable housing.
- Providing direct home ownership assistance through low-interest loans, down payments and closing costs.
The remaining 10 percent of the funds are available to cover administration and delivery costs.
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