Florida Cities Receive Foreclosure Help

Under the Neighborhood Stabilization Program enacted as part of the Foreclosure Prevention Act of 2008, 48 local and state governments in Florida will receive U.S. Department of Housing and Urban Development (HUD) funding specifically for foreclosure relief.

The program is designed to provide local governments with a source of funding to respond to rising foreclosures and declining property values. Florida was allocated $541 million, which includes $91 million to the Department of Community Affairs and $450 million for 48 local governments.

Eligible uses for the programs funds include:

• Buying foreclosed properties.
• Demolishing or rehabilitating abandoned properties.
• Offering down payment and closing cost assistance to low-to-moderate income home buyers.
• Creating "land banks" to temporarily manage and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment.

All recipients of the funds will have 18 months to relegate their use to the program. If they have not been committed in that timeframe, HUD will recapture the funds.

Examples of Florida cities receiving these funds include:

• Cape Coral - $7 Million
• Ft. Myers - $2 Million
• Lehigh Acres (Lee County) -$18 Million
• Naples (Collier County) - $7 Million

For a complete list of all Florida locations receiving these funds you can read more here: HUD Florida City Grants List (PDF Format).