January 23, 2009

HUD Approves Chula Vista $2.8 Million Neighborhood Stabilization Plan Aimed at Foreclosed Properties

The U.S. Department of Housing and Urban Development (HUD) this week approved the City of Chula Vista’s $2.8 million plan aimed at reviving neighborhoods hit hard by foreclosures. Across the country, HUD’s Neighborhood Stabilization Program (NSP) is pumping federal dollars into those communities experiencing exceptionally high foreclosure problems and risk of property abandonment. Local governments have developed plans for spending the HUD dollars. This week nine California communities, including Chula Vista, were given the green light to move forward with their plans.

According to HUD, NSP funds may be used to purchase foreclosed or abandoned homes/properties and/or to rehabilitate, resell or redevelop these homes. A key component of Chula Vista’s plan is to provide down payment assistance for low and moderate income first-time buyers purchasing foreclosed properties. Another part of the plan is to create permanent rental housing opportunities for very-low income residents. To see a copy of the approved plan and find out if you.re eligible, visit www.chulavista ca.gov/cvrh.

HUD’s Neighborhood Stabilization Program was created under the Housing and Economic Recovery Act of 2008 and provides nearly $4 billion to every state and certain local communities experiencing exceptionally high foreclosure problems and risk of property abandonment.

City staff is putting together a series of educational events for the public prior to March 3 when the Chula Vista City Council is expected to appropriate the NSP funds.

Return to the Frontpage