January 14, 2010

Delaware Receives $10 Million to Help Hard-Hit Neighborhoods

Recovery Act funds will buy, rehab, and sell homes in struggling communities

DOVER, Del. – Delaware State Housing Authority (DSHA) will receive $10 million in federal stimulus funds to spur economic development in hard-hit communities. The U.S. Housing and Urban Development (HUD) announced the grant for Delaware’s Neighborhood Stabilization Program (NSP) today.

“These Recovery Act funds will create stronger and more vibrant neighborhoods by educating aspiring homeowners and developing affordable housing,” said U.S. Senators Tom Carper and Ted Kaufman (both D-Del.). “Neighborhoods that have been hardest hit by foreclosures and abandonment will improve with increased homeownership, causing a ripple effect that will extend to other areas of the economy and community.”

DSHA will receive $10,007,109 in American Recovery and Reinvestment Act (ARRA) funds to purchase and rehabilitate homes in struggling communities and then make them available at affordable rates to potential buyers or renters. The state’s program received $19.6 million in 2009.

“Neighborhoods are strengthened one home at a time. Putting people to work rehabilitating these houses and making them available and affordable to move others into responsible home ownership will make a difference,” Governor Jack Markell said.

Added DSHA Director Anas Ben Addi: “As the administrative agency for the first NSP round, DSHA took the lead in working with our partners to create a solid application, so we’re thrilled that Delaware received NSP 2 funds in such a competitive process. Both rounds of funding are a vital link to supporting Governor's Markell’s Foreclosure Plan to help communities recover from the impact of neglected properties.”