Fed Aid to Alleviate Impact of Foreclosed Homes for Sale in Los Angeles

by Peter Vernon on cities

Communities that have suffered greatly from the impact of thousands of foreclosed homes for sale in Los Angeles are set to receive some help from the U.S. federal government. The Department of Housing and Urban Development (HUD) has announced that a total of $9.88 million will be given to the City of Los Angeles Housing Department under the Neighborhood Stabilization Program (NSP).

The funds are part of the third round of NSP funding designed to help neighborhoods that have been hit hard by the huge number of foreclosed properties, including Wells Fargo homes for sale and other bank foreclosures. The money will be used to revitalize communities through the rehabilitation of decrepit properties and the creation of green and sustainable structures.

According to local authorities, the funds will also be used to purchase California foreclosed homes, redevelop them and offer them for rent or for sale in affordable rates to low income and moderate income households. The HUD fund allocated to Los Angeles is one of the highest amounts issued under the third round of NSP financing.

Prior to the third round of financing, the city has received two sets of financial aid from the federal government through the NSP to help neighborhoods that are suffering from blight due to the high number of foreclosed homes for sale in Los Angeles. The first round of financing in 2008 provided the city with $32.8 million, while the second round saw the area receiving a total of $100 million in 2009.

Within a three-year period, the city of Los Angeles has had over 30,000 of foreclosure houses for sale, with a big number of these properties found in the East and South areas of Los Angeles and also among the San Fernando Valley neighborhoods. Residents and local officials from these areas have stated that the funds will go a long way towards helping local communities recover from the impact of the housing market crisis.

Housing officials have also added that previous allocations have helped them revitalize some of the communities greatly affected by the huge number of foreclosed homes for sale in Los Angeles and they expect the third round of funding to do the same.