|
White House Announces $1.5 Billion for Hard-Hit Housing Markets
President Obama on Feb. 19 in Las Vegas announced $1.5 billion in funding to work with state and local housing agencies (HFAs) to address problems faced by home owners in the hardest-hit states, where average housing prices have dropped more than 20% from their peak.
“During these difficult economic times, we will work to help responsible home owners stay in their homes and stabilize the housing market so home values can rise,” the President said.
The Administration will pay for the program with funds that have been set aside for housing under the Emergency Economic Stabilization Act of 2008.
“This program will allow housing finance agencies in the places hardest-hit by the housing crisis find innovative ways to help home owners stay afloat, and empower local agencies that know these communities best,” Obama said.
Eligible states will receive grants based on home price declines and unemployment. The Treasury was to announce maximum state allocation levels within two weeks.
The HFAs will be required to submit their proposals to the Treasury Department. Programs may include measures for unemployed home owners, assistance for borrowers who owe more than their home is now worth, solutions to challenges in loan modifications arising from second mortgages and other initiatives to encourage sustainable and affordable homeownership.
|
