Rep. Maxine Waters (D-Los Angeles) has praised the awarding of nearly $10 million in Neighborhood Stabilization Program (NSP) grants to both the city and county of Los Angeles to purchase, rehabilitate and re-sell foreclosed homes in neighborhoods that have been devastated by the economic crisis.
Waters, who serves as chairwoman of the Subcommittee on Housing and Community Opportunity, authored the legislation that created NSP and has led efforts in Congress to combat foreclosures and neighborhood decline.
The $1 billion in funds awarded Sept. 8 were provided under the Dodd-Frank Wall Street Reform Act of 2010 through a formula developed by the U.S. Department of Housing and Urban Development. Waters, a member of the conference committee responsible for drafting that legislation, championed the $1 billion NSP provision, as well as an additional $2 billion for a program to provide loans to help unemployed homeowners stay in their homes, a spokesman for Waters said.
The awards mark the third infusion of funds to NSP after $4 billion in formula funds were previously provided under the Housing and Economic Recovery Act of 2008, and an additional $2 billion in competitive funding was provided under the stimulus package in February 2009, Waters’ spokesman said. The city and county of Los Angeles received a combined $210 million, and the state of California received $145 million under those previous rounds of funding,
“The large awards made today to the city and county of Los Angeles reflect the seriousness of the foreclosure crisis in the Los Angeles area,” said Waters, who represents communities such as Westchester. “While foreclosures are certainly a problem throughout California, they represent a true crisis in the 35th District. The rate at which banks reclaimed ownership of homes in foreclosure was 50 percent higher in the 35th District than the rate in California, and almost double the rate nationally.”
Neighborhood stabilization funds are managed by three organizations in the city and county of Los Angeles — Restore Neighborhoods L.A., the L.A. Community Development Commission and L.A. Neighborhood Housing Services.
“While I’m pleased that I was able to secure this third round of NSP funding, we still need additional resources given the scale of the foreclosure crisis,” said the congresswoman.