NH Gov. Lynch, CDFA Announce Communities Eligible to Receive $19.6 million in Neighborhood Stabilization Funds

More Communities May be Eligible for Funding Under Stimulus

March 23, 2009 -- CONCORD - New Hampshire Governor John Lynch and the Community Development Finance Authority today announced that Berlin, Manchester, Rochester, Derry and Nashua are eligible to receive $19.6 million in federal Neighborhood Stabilization grants to strengthen neighborhoods facing high levels of foreclosures and provide greater affordable housing options.

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In November, New Hampshire, though the Community Development Finance Authority, was awarded $19.6 million in Neighborhood Stabilization Program Funds from the U.S. Department of Housing and Urban Development. The purpose of the grants is to stabilize neighborhoods by acquiring and developing foreclosed properties to create vibrant, livable, and affordable neighborhoods for low-income families.

Berlin, Manchester, Rochester, Derry, and Nashua are eligible for the Neighborhood Stabilization Program and have submitted pre-applications. The CDFA will be working with these communities on final plans.

“These grants will allow communities to purchase and rehabilitate properties that will provide more affordable housing opportunities for our hard-working men and women, and help strengthen struggling neighborhoods,” Gov. Lynch said.

HUD regulations specify that the funds can only be used in communities that had the highest number and percentage of home foreclosures; the number and percentage of homes financed by subprime mortgage related loans; and data indicating a municipality’s likelihood of facing a significant rise in the rate of home foreclosures.

Other communities may be eligible for additional funding through the American Recovery and Reinvestment Act. An additional $2 billion in Neighborhood Stabilization Program funds will be available through a competitive application process between all states. Any municipality or nonprofit can apply on their own behalf directly to HUD for this highly competitive block of grants.

“Neighborhood Stabilization funds will help to transform areas of communities into vibrant and safe neighborhoods for individuals and families,” said Katharine Bogle Shields, executive director of the Community Development Finance Authority. “We anticipate these funds making a big difference economically and esthetically, not only for the municipality, but also for hardworking people who deserve to live in affordable and quality housing.”

CDFA is a nonprofit public entity, created by legislation in 1983. The CDFA administers over $35 million in state and federal monies that it grants or loans to municipalities and nonprofits in New Hampshire. CDFA supports affordable housing and economic development activities that benefit low- and moderate-income citizens. For more information about CDFA please visit www.nhcdfa.org or call 226-2170.

Source: New Hampshire Governor