The Cities of Reno and Sparks will be taking part in the Department of Housing and Urban Development's (HUD) new Neighborhood Stabilization Program (NSP).
Nearly $1.7 million will be divided up among Reno, Sparks, and Washoe County. The funding is being provided to the County through the U.S. Department of Housing and Urban Development which was created with the passage of the Housing and Economic Recovery Act of 2008.
The NSP is part of a federal program to help low-to-moderate income families with housing. Organizers plan to rent foreclosed homes initially and leverage the value to buy other properties.
How Nevada was chosen to receive funds:
The Housing and Economic Act of 2008 calls for allocating funds to States and local governments with the greatest need, as determined by:
- The number and percentage of home foreclosures in each State
- The number and percentage of homes financed by sub-prime mortgages in each State
- The number and percentage of homes in default or delinquent in each State
Nevada if one of the top four states that meets this criteria. The City of Sparks alone has an estimated 800 homes in foreclosure or approaching foreclosure.
How the NSP will work:
- Foreclosed homes will be purchased at a discounted rate, rehabilitated and possibly upgraded.
- These homes will then be rented to families with low or moderate incomes.
- The homes will eventually be resold to qualifying buyers.
- The program will not bail out foreclosed homeowners.
The program will help those families who have excellent credit and qualify to buy a home but cannot come up with the down payment needed to secure a loan. The Reno Housing Authority will determine who is qualified and will be in charge of renting the homes.
Ideally, the Neighborhood Stabilization Program will help save neighborhoods from turning into rundown areas. By renting these homes, it not only gives people a place to live, it will give them a change to save and eventually buy a home.
The program will have a few benifits for current homeowners as well. There will be fewer homes that sit vacant in each neighborhood, this cutting down on vandalism. The new renters will be taking care of the property, thus preventing lawns from dying. Another main advantage of having the homes rented instead of vacant is home value. The value of your home will likely increase rather than decrease with homes that are rented rather than vacant.
As a Northern Nevada resident, I hope the Neighborhood Stabilization Program will be the first of many steps to help get our economy back in shape for 2009.
| About The Author Terrie Leighton is a Northern Nevada Residential Real Estate Specialist that can assist you with the purchase and/or sale of real estate in the Reno – Sparks metro area; or any place else in the country by connecting you with a relocation professional in your destination of choice. |
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Authored by Terrie Leighton. January 2009. Terrie is a licensed real estate agent with Ferrari-Lund Real Estate in Northern Nevada. The information in this post is believed to be accurate, but is not guaranteed.
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Hi Terrie. This rent to buy program on the foreclosed properties sounds great if they can use it to stabilize the neighborhoods. I agree that it will be great if this is a step to get the economy in this area back on track.
If the NSP can get the vacant, foreclosed homes occupied, I believe it to be a step in the right direction! Thank you Gary.
Hi Terrie, I hope this program works and look forward to hearing how things evolve.
Hey Terrie, This sounds like a great program. We are all wanting things to turn around like yesterday but unfortunately that isn't realistic but hopefully this program will be a start. Please keep blogging about it to keep us up-to-date! Take care!
Hey my friend,
It's a shame that Nevada made it to one of the top 4 states on the list to receive funding. But it's a good thing something is being done about it.
I so hope for you, the state and the economy there that this funding project helps.
I surely can't hurt.
Susie ~ Thank you and I will keep you up to date on the progress of the program.
Teresa ~ Thank you as well. Let's hope some change will occur with this program.
Craig ~ Yes, at least something is being done about the amount of foreclosures Nevada has, Las Vegas has even been hit harder than Reno so hopefully this will be a good start for the entire state.