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City nets funds for foreclosures
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The State of California announced on Thursday that 96 California communities — including Turlock — are set to receive a total of $92.7 million in federal Neighborhood Stabilization Program funds, intended to counteract the effects of the foreclosure crisis.
“These funds will make it possible for local governments throughout California to buy and restore homes and bring hope back into their communities,” said California Department of Housing and Community Development Director Lynn L. Jacob.
The NSP funds were made available through the 2008 Housing and Economic Recovery Act, as approved by then-President George W. Bush. Turlock is set to receive $1.52 million from the program, which is “intended to rejuvenate neighborhoods and communities that are hardest hit by the foreclosure crisis,” according to HCD.
According to the U.S. Department of Housing and Urban Development, 41 percent of Turlock residents live in high foreclosure risk areas.
Recipients of NSP funds can purchase and rehabilitate homes to sell, rent, or redevelop, create land banks for homes that have been foreclosed upon, demolish blighted structures, redevelop demolished or vacant properties, and establish financing mechanisms for the purchase and redevelopment of foreclosed upon homes and residential properties.
The City of Turlock expects to use $390,000 of the NSP funds for down payment assistance. An additional $525,000 would be spent on purchasing and rehabilitating homes in high-foreclosure areas in the Southwest quadrant of Turlock. An equal amount of $525,000 will be spent to purchase and rehab homes in other census tracts identified to have a high need for the funds, located in the Westside and downtown areas of Turlock.
Turlock has 18 months to commit funding to projects, with all work to be completed by June of 2011.
While Turlock is the only city in Stanislaus County to receive NSP funds, Merced County and its communities will be major beneficiaries of the program. The City of Atwater will take in $1.04 million, the City of Los Banos will receive $2.41 million, City of Merced $2.05 million, and the County of Merced $3.84 million.
“We are committed to getting funding out as quickly as possible to provide prompt relief and assistance to individuals, families, and communities throughout California,” Jacobs said.
To contact Alex Cantatore, e-mail or call 634-9141 ext. 2005.