May-6-2011 DCA Neighborhood Stabilization Program Funding Rehabilitates Foreclosed Properties in City of Passaic
DCA Neighborhood Stabilization Program Funding Rehabilitates Foreclosed Properties in City of Passaic
First of 12 Affordable Housing Properties Is Completed
PASSAIC, N.J. – New Jersey Department of Community Affairs (DCA) Commissioner Lori Grifa today announced the completion of the first of 12 affordable housing properties in the City of Passaic that received more than $2.4 million in Neighborhood Stabilization Program funds through the DCA. The grant is paid for with federal funds intended to stabilize neighborhoods hard hit by home foreclosures.
"These rehabilitated houses will help the City of Passaic stem the tide of declining home values, property deterioration and blight that so often occurs as a result of property foreclosures in neighborhoods," said Commissioner Grifa. "We look forward to the day when all 12 properties are completed and become homes – and sources of pride -- to hard working families."
As a component of the federal Housing and Economic Recovery Act of 2008, the Neighborhood Stabilization Program is specifically intended to assist neighborhoods that are experiencing the negative effects of the foreclosure crisis and that are statistically at high risk of continued market deterioration. In 2009, the DCA secured $51,470,620 from the U.S. Department of Housing and Urban Development to provide funds to municipalities, counties and developers to acquire and rehabilitate foreclosed properties that might otherwise become sources of abandonment and blight. The DCA awarded 35 grants.
The $2,437,775 grant that the City of Passaic received is being used to rehabilitate 12 foreclosed and/or abandoned properties and make them available for sale to qualified homebuyers. In addition, four affordable rental units will also be available.
An "open house" was held today for eligible households at the first completed property at 215 Autumn Street. The 12 homes will be sold to moderate income families. In the City of Passaic, a family of four qualifies as moderate income if their total household income is $73,800 or less. The four rental units will be rented to lower income families; a family of four qualifies as low income if it makes up to $55,320 a year.
All properties assisted with Neighborhood Stabilization Program funding must be completely renovated. Most of the properties have new appliances, new roofs, new flooring, and new paint finishes. All the homes include energy efficiency improvements to reduce utility costs for the buyers and tenants.
The Neighborhood Stabilization Program utilizes Section 3 requirements to employ local residents and sub-contract with contractors in the community to do the rehabilitation and construction work.
For more information about the Neighborhood Stabilization Program, log on to http://www.nj.gov/dca/divisions/dhcr/offices/nspguide.html on the DCA website. To see a list of Neighborhood Stabilization Program awards and project descriptions, go to http://www.nj.gov/dca/divisions/dhcr/offices/docs/nsp/nsp_award_projects.pdf.