January 14, 2010

Washington, D.C. – Nevada Senator Harry Reid today made the following statement after learning that Southern Nevada’s request for economic recovery funds to provide foreclosure assistance was denied.

“I am extremely disappointed to learn that southern Nevada will not receive funds through round two of the Neighborhood Stabilization Program, a program that was designed to assist the areas of the country in most need.  Secretary Donovan was in Las Vegas last summer and saw first-hand how serious the situation is.  With the highest foreclosure rate and today’s news that bankruptcies increased by nearly 60 percent last year, it’s clear Nevadans need help and it’s time for HUD to step up.
 
“HUD has indicated that the applicants in southern Nevada did not meet eligibility requirements but the agency needs to explain why.  And, given the severity of the foreclosure crisis in southern Nevada, HUD needs to work with the state to provide needed resources to confront it. 
 
“I will be sending a letter to Secretary Donovan asking him to meet with me to discuss this issue further.  I also want to hear an explanation from the agencies in southern Nevada that received $60 million dollars from the first round of Neighborhood Stabilization funds about why, according to press reports, tens of millions of dollars have been left on the table.  It would be a travesty if that alleged inaction cost our state badly-needed federal funding.”