South Bend, Elkhart get $6 million in grants to combat foreclosures

Indiana Foreclosure News

South Bend and Elkhart have received more than $6 million in grants as part of a nearly $4 billion federal program designed to help communities impacted by high home mortgage foreclosure rates.

The grants, part of the U.S. Housing and Urban Development's new Neighborhood Stabilization Program, are made available to local government to buy foreclosed homes at a discount and fix them.

The program offers communities a chance to fight back against vacant, abandoned homes and falling property values, HUD said in a news release.

Money was allocated with an eye on local foreclosure rates, and subprime mortgages and mortgage defaults.

In South Bend, where agency figures showed a 10.2 foreclosure rate of targeted properties, local government will receive $4.1 million in program grants.

Elkhart, where the rate is 10.3 percent, will receive more than $2.2 million.

According to HUD, both communities were assigned a high risk for vacant homes, calculated by using foreclosure starts across an 18-month window and census data for areas with high numbers of vacant homes and subprime loans.

Indiana's state program will also receive $83.8 million in Neighborhood Stabilization Program grants.

The program, authorized under the Housing and Economic Recovery Act of 2008, awarded money in all 50 states. The funds will be administered through the Community Development and Block Grant program.

This weekend, HUD plans a national "housing summit" in Washington, D.C., to detail the plan for mayors, governors and other local and state leaders.

A series of regional conferences also is planned.

 

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