DED announces $10.6 million available to address foreclosed housing under Neighborhood Stabilization Program

JEFFERSON CITY, MO – May 5, 2009 – (RealEstateRama) — In a continued effort to spur the state’s economy, the Missouri Department of Economic Development (DED) is issuing a call for proposals for Neighborhood Stabilization Program (NSP) “Category 3” projects in accordance with the state’s Neighborhood Stabilization Program Substantial Amendment. The department has made $10,666,047 available for distribution under this category.

Communities eligible for Category 3 NSP funding are those that are income eligible; have high foreclosure and abandonment rates; have above average unemployment rates; and have an above-average rate of high-cost loans.

DED is required to use the funds to address the housing needs of persons and households not exceeding 50 percent of the area median household income.

The Neighborhood Stabilization Program, created by the Housing and Economic Recovery Act of 2008 (HERA), is designed to address the foreclosure and housing crisis. Activities include, but are not limited to, acquisition and rehabilitation of foreclosed houses and redevelopment activities. The program is restricted to activities related to homes that have already experienced foreclosure.

Proposals must be submitted to DED no later than noon on May 29. For more information, please visit DED’s website at www.missouridevelopment.org or contact Andy Papen at (573) 751-3600