Around $1.03 million will be provided to the city of Dearborn, Michigan by the federal government as part of its Neighborhood Stabilization Program (NSP). The money is meant to help neighborhoods in the area that have been hit hard by residential home foreclosures. Congressman John D. Dingell had applauded the government's move to provide the city with the funds.
The money will be used to purchase foreclosed homes in Dearborn. These foreclosed properties will then be rehabilitated and sold to first time house buyers for reasonable prices. Part of the funding will also be used to demolish abandoned residences that are beyond renovation.
According to Dingell, the program has so far been a success in terms of easing the problem of Michigan foreclosure listings. The state is set to receive a total of $30 million from the recent funding round of the U.S. Department of Housing and Urban Development. The money will be divided among cities and counties in the state hardest hit by the foreclosure crisis.
The first round of funding saw Dearborn receiving $2.44 million, with the money being used in buying home foreclosures for sale. So far, the city has purchased 58 abandoned dwellings that are in need of rehabilitation. With the second round, Dearborn plans to rehabilitate or demolish an additional 30 residential properties.
Total funds meant to solve problems related to residential home foreclosures in Dearborn have reached $3.46 million. The NSP financial assistance is primarily geared towards purchasing, rehabilitating and selling off foreclosed properties. It is also meant to finance landbank operations and cover part of the expenses involved in redeveloping housing projects. Most of the rehabilitated foreclosed properties are meant to be sold to low and medium-income families.
Dingell, along with local officials from Dearborn, have praised the U.S. federal government's efforts to help the city and other areas of the country suffering from neighborhood blight caused by foreclosures. The congressman was one of the sponsors of the Housing and Economic Recovery Act that became law in 2008.
Several programs were launched under the legislation that was designed to help neighborhoods suffering from blight caused by huge numbers of residential home foreclosures. The law also financed efforts to prevent homeowners from losing their homes to foreclosures through loan modifications and other options.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.