Mayor Rybak, Representative Ellison Announce $2.7 Million More for Foreclosure Recovery from Obama Administration
HUD Secretary Donovan singles out Minneapolis’ “potent” work in helping neighborhoods recover as Obama administration awards NSP3 funds
Minneapolis, MN – September 10, 2010 – (RealEstateRama) — Minneapolis Mayor R.T. Rybak and U.S. Representative Keith Ellison announced today that the City of Minneapolis has won an additional $2.7 million from the U.S. Department of Housing and Urban Development (HUD) to acquire and redevelop foreclosed properties in neighborhoods impacted by foreclosure, as part of the third round of Neighborhood Stabilization Program (NSP3) funds.
“I am very grateful to the Obama administration and Congressman Keith Ellison for their close partnership in assisting the City in rebuilding Minneapolis neighborhoods affected by the foreclosure crisis,” Mayor Rybak said. “With the federal government’s help, hundreds of Minneapolis homes that would have been abandoned or deteriorated even further have been rehabilitated to green standards, and are now a community asset.”
“These funds are essential in rebuilding and revitalizing communities in Minnesota that are suffering from the devastating effects of foreclosure,” said Representative Ellison. “I am very interested in the progress of the NSP program. In fact, I held a Congressional Field Hearing in Minneapolis with Rep. Maxine Waters, Chairwoman of the Subcommittee on Housing and Community Opportunity, to get more information on how the NSP funds were being used. I continue to be in communication with local governments to receive updates on the program. NSP is an important resource to help communities recover from the debilitating results of the foreclosure crisis.”
Mayor Rybak continued, “The success of our efforts shows that strategic public investment in strengthening urban neighborhoods like North Minneapolis can leverage significant private investment and set the stage for housing-market recovery and neighborhood revitalization.”
In a recent speech, HUD Secretary Shaun Donovan singled out for national recognition Minneapolis’ results in housing-market recovery and neighborhood stabilization. Secretary Donovan praised Minneapolis’ “potent” work in using $5.6 million in NSP funds to leverage $30 million more in investment from non-profit and for-profit developers for community stabilization.
To date, the City has received over $30 million in HUD recovery funding for helping Minneapolis neighborhoods recover from the foreclosure crisis and rebuilding the housing market. The City was awarded $14 million in NSP1 funds in 2008 and $19.5 million more in NSP2 funds in 2009 as part of a joint application with Brooklyn Park and Hennepin County.
The City uses NSP funds to provide homebuyers with down-payment and closing-cost assistance when purchasing a foreclosed or vacant home. In partnership with non-profit developers, the City also uses NSP funds to assist in acquiring property for future redevelopment and rehabilitating properties for rental and homeownership.
The NSP3 funds are authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. They provide competitive grants to states, local governments, nonprofits and a consortium of nonprofit entities to make investments that will reduce blight, bolster neighboring home values, create jobs and produce affordable housing.
The City Council will be asked to approve the spending plan for the NSP3 funding in early 2011.
