The U.S. Housing and Urban Development Department is beginning to hand out nearly four billion dollars in a program designed to respond to home foreclosures. HUD Secretary Steve Preston said today each state will get a portion of the money based on a need formula.
He says the states and local communities will use the money to acquire and redevelop foreclosed properties that might otherwise become sources of "blight," abandonment or other problems in their communities. Preston says the communities will have a lot of options for using the money.
Preston says they can use it to buy land or property, to demolish or rehabilitate abandoned properties, or to offer down payment and closing cost assistance to low and moderate income buyers. He says they can even create land banks to assemble and temporarily manage properties to then re-dispose of them. Preston says they will release guidelines for use of the funds on Monday.
The HUD website shows that Iowa has a 3.5% rate of foreclosure and abandoned homes and the state will receive $21.6 million.