Feb-03-09 New Jersey Secures $51.4 Million in Funds Through Neighborhood Stabilization Program Action Plan
New Jersey Secures $51.4 Million in Funds Through
TRENTON - Department of Community Affairs (DCA) Commissioner Joseph Doria today announced that New Jersey has secured $51.4 million in funds from the Federal Department of Housing and Urban Development (HUD) to implement its Neighborhood Stabilization Program (NSP) Action Plan.
"Thanks to the efforts of Senators Menendez and Lautenberg, this funding will help to stabilize some of our neighborhoods devastated by the national foreclosure crisis," said Governor Jon S. Corzine.
As a component of the Housing and Economic Recovery Act of 2008, the NSP is specifically intended to stabilize neighborhoods experiencing the negative effects of the subprime mortgage crisis and the general economic downturn. These localities are identified as those hard hit by foreclosures and are statistically at high risk of continued market deterioration. Funds from the NSP can be used for property acquisition, demolition, rehabilitation and for the creation and operation of land banks, in any combination, to spur neighborhood recovery.
"The NSP will play a large part in Governor Corzine's efforts to revitalize communities hit hardest by the foreclosure crisis," said Commissioner Doria. "The RFP process is still open, and I encourage all interested groups to seek out this funding which will greatly assist and help your neighborhoods."
The State's Action Plan focuses on neighborhoods with existing community planning infrastructure, relevant economic assistance and counseling programs. These areas include those that are participating in the State's Neighborhood Preservation Program, have plans and private invest through the Neighborhood Revitalization Tax Credit, have ongoing CDBG investment or have been a target for other state, county or local investment. Local availability of foreclosure prevention programs and other community based assistance will be weighed in the selection process.
Awarding of NSP funds will begin before the end of March. DCA published an RFP in December that will close on Friday, February 6th. The RFP is open to local governments, for-profit and non-profit developers and non-profit organizations. Applicants must develop and propose a set of interventions that are both allowable under NSP regulations and appropriate to the local circumstance. DCA held an information session last week, where over 50 groups received information on NSP funding.
For further information on the NSP, please log on to http://www.nj.gov/dca/, or call 609-633-6283.