Washington, DC – Nevada Senator Harry Reid today applauded the announcement made by U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan that unspent funds from the first round of the Neighborhood Stabilization Program (NSP) will be reallocated to help the hardest hit communities. After learning that southern Nevada missed out on the second round of NSP funding because of inefficiencies in implementing round one funding, Reid met with Donovan to ensure Nevada receives the resources it needs and that more help is provided for struggling Nevada homeowners.
While HUD is working with southern Nevada to make sure funding is spent properly, this serves as a wakeup call for local communities to do everything possible to ensure the money is appropriated quickly and efficiently. HUD will recapture round one NSP funds from communities that have not spent them by this fall and reallocate to local governments based on foreclosure and vacancy data. According to HUD, the rough estimate of funds for Clark County, Las Vegas, Henderson and the State of Nevada would total $25-$62 million.
“I applaud Secretary Donovan for responding to my call to provide more assistance to Nevada so we can improve our effort to combat foreclosures and help more Nevadans stay in their homes,” Reid said. “In addition to impacting the homeowner, foreclosures bring down the value of neighboring homes and contribute to a less stable market. These funds will be used to reverse that trend by rehabilitating vacant homes and helping homebuyers purchase them.”
If a third round of funding is secured, HUD will work with Congress on technical changes designed to improve the flexibility and impact of the NSP program. They will also work to help local grantees implement the funds more effectively. While communities would set their own program targets, HUD would provide options for implementation. Grantees would be required to:
· Work with a subgrantee – an entity that is granted the legal obligations and authority to implement NSP on behalf of the grantee;
· Sign a Technical Assistance agreement with HUD; or,
· Work in a consortium with a high capacity lead grantee.
This is the latest result of Reid’s work with President Obama and Secretary Donovan to improve the housing situation in Nevada and ensure we don’t miss out on much needed funding. Other recent benefits for Nevada include: more staff for the Las Vegas HUD office, including a foreclosure SWAT team; and more than $100 million for Nevadans who owe more than their home is worth.