Review by HUD: QPR Contact: Distribution and and Uses of Funds

Karen Patterson
unpublished
Disasters: NSP Declaration Number Narratives Areas of Greatest Need: Disaster Damage: Throughout California, abandoned and foreclosed homes have had an adverse impact on various major metropolitan, suburban and rural areas to varying degrees. This matter is only forecasted to worsen due to relaxed underwriting standards, in the recent past, for mortgages that are due to have variable interest rates reset in the near future, thus producing an increase in mortgage defaults and eventual
more » ... eventual foreclosures. Based on greatest need, HUD allocated $145,071,506 to the State of California to be administered by the California Department of Housing and Community Development. The State of California has defined several areas (jurisdictions) of greatest need and made NSP allocations available to those areas. A California NSP Notice of Funding Availability was released in April 2009. The State was awarded The State will allow jurisdictions to use NSP funds for all 5 NSP eligible uses. Jurisdictions will be required to submit applications detailing their intended use of NSP funds, projected number of units to be acquired, rehabilitated, and made available for sale to low-, moderate-, middle-income persons or the projected number of units to be demolished and/or redeveloped. All jurisdictions that are awarded State NSP funds will be required to comply with stringent timelines for use/obligating funds, expenditure of funds, and performance reporting.
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