California Receives More Than a Half Billion Dollars to Rejuvenate Neighborhoods Hit Hardest by Foreclosures

SACRAMENTO, Calif.--(BUSINESS WIRE)--Today California received $529 million from the federal Housing and Urban Development (HUD) Department to help renovate and rehabilitate foreclosed homes, eliminate blight and reinvigorate and stabilize the affected neighborhoods. Of those funds, the California Department of Housing and Community Development (HCD) will administer $145 million to local jurisdictions who do not get money directly from HUD.

“This money will rejuvenate neighborhoods and communities that are hardest hit by the foreclosure crisis. HCD is committed to getting this funding out as quickly as possible to provide prompt relief and assistance to individuals, families and communities throughout California”

“This money will rejuvenate neighborhoods and communities that are hardest hit by the foreclosure crisis. HCD is committed to getting this funding out as quickly as possible to provide prompt relief and assistance to individuals, families and communities throughout California,” said Lynn L. Jacobs, Director of HCD.

The funds are the state’s share of $3.9 billion in funds from the Housing and Economic Recovery Act of 2008, passed by Congress in July. The funds will assist local governments in purchasing abandoned and foreclosed homes and residential property.

Consistent with the existing program administered by HCD and local governments, this funding allows localities to renovate and rehabilitate those homes, eliminating blight and reinvigorating and stabilizing the affected neighborhoods. The funds will be awarded over the next 18 months.

Over the next 60 days HCD will be developing an action plan and application process for these funds. HCD is committed to working with local governments throughout California in developing an efficient process that will bring stability back to their communities.

Visit www.hcd.ca.gov or email CDBGforeclosure@hcd.ca.gov for more information.

HCD provides leadership, policies and programs to preserve and expand safe and affordable housing opportunities and promote strong communities for all Californians. The Department also supports increasing the supply of housing, especially affordable housing and works to improve the state’s housing conditions and the health and safety of its residents. As the lead housing department, HCD is part of the state Business, Transportation and Housing Agency.