Patrick administration praises HUD approval of state’s $43.4 million Neighborhood Stabilization Plan

The Patrick Administration today received notification that the U.S. Department of Housing and Urban Development approved the Commonwealth's plan to use $43.4 million in federal funds to stabilize neighborhoods in Massachusetts communities hit hard by the effects of foreclosure. The state Department of Housing and Community Development (DHCD) submitted the plan to HUD last month and will now make those funds available to acquire, renovate and redevelop foreclosed properties. Another $11.4 million was awarded directly by HUD to the cities of Boston, Brockton, Springfield and Worcester, Springfield for similar projects.

"Today's approval from HUD helps the Patrick Administration further its ongoing comprehensive efforts to combat community blight that can result from severe foreclosure activity in highly impacted neighborhoods," said DHCD Undersecretary Tina Brooks.

Massachusetts' award is part of a $3.9 billion nationwide program rolled out by HUD last fall under the Housing and Economic Recovery Act of 2008. The funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values. Following HUD guidelines, in addition to the four cities receiving direct HUD funding, the Patrick Administration identified another 35 communities as areas hardest hit by foreclosure and most in need of financial assistance.

The communities of Fitchburg, Haverhill, Lawrence, Lowell, Lynn, New Bedford, Framingham, Barnstable, Plymouth and Marlboro can apply for direct assistance for eligible projects while the communities of Revere, Everett, Methuen, Weymouth, Chicopee, Leominster, Quincy, Milford, Randolph, Attleboro, Yarmouth, Wareham, Salem, Billerica, Fall River, Saugus, Dracut, Somerville, Chelsea, Peabody, Taunton, Holyoke, Stoughton, Falmouth and Marshfield round out the list of communities eligible to receive assistance through the plan.

In addition to direct awards to cities, the funding covers a variety of programs including existing loan funds, housing development programs and new grant opportunities for acquisition, rehabilitation or redevelopment of properties, landbanking or selective demolition of blighted buildings in those communities.

Some of the funds will also be used to expand the use of receivership programs to rehabilitate properties and support for a central clearinghouse of lender-owned properties available for purchase.

"HUD's approval of the Patrick Administration plan will help us all to further identify where help is needed the most and where resources can be best directed to promote neighborhood stabilization throughout the Commonwealth," said Clark Ziegler, Executive Director of the Massachusetts Housing Partnership.