City Directs Stimulus Funding at Preventing Foreclosure, Stabilizing Neighborhoods
June 12, 2009
City to use Federal Funding for Foreclosure Prevention Position, Stabilization Projects
The City of Madison will use awarded federal stimulus funding to address foreclosure prevention and neighborhood stabilization projects. Madison will receive funding through Community Block Grant Development (CDBG) to create a foreclosure prevention position, as well as $1,098,634 in Neighborhood Stabilization Program (NSP) funding through the American Recovery and Reinvestment act.
The City will use Community Block Grant Development funding through the Recovery Act to fund a foreclosure prevention position attached to the CDBC office. This temporary position will be able to work with people in the community to connect them with available resources, including lenders, and prevent foreclosure from happening.
"We need to continue to be focused on ways we can help our citizens and our City get through the recession. This foreclosure prevention position does exactly that," Cieslewicz said.
As the leader of a consortium of community groups that submitted the NSP application, the City will also facilitate neighborhood stabilization projects across the community.
"I'm very pleased that we'll be able to use federal stimulus funding to work together to provide stable neighborhoods and quality, affordable housing for our citizens in this challenging economic environment," said Mayor Dave Cieslewicz.
The targeted funding will provide an opportunity to improve homeowner rates and stabilize the neighborhoods through down payment assistance and acquisition and rehabilitation of foreclosed property to convert to affordable rental or homes.
The City will work with consortium members to administer programs. Those members include the Dane County Housing Authority, Common Wealth Development, Habitat for Humanity, Housing Initiatives, Madison Area CLT, Madison Development Corporation, Movin' Out, Operation Fresh Start, Project Home, Urban League of Greater Madison and the Wisconsin Partnership for Housing Development.
- Rachel Strauch-Nelson, (608) 266-4611