Legislative Newsletter Archive >> LEGISLATIVE ALERT - November 20, 2008 Mike Graziano, Director of Government Affairs   COUNTY COUNCIL PASSES DOWN PAYMENT ASSISTANCE as part of NEIGHBORHOOD STABILIZATION PLAN In July, President Bush signed into law the Housing And Economic Recovery Act of 2008 (HERA). The legislation was the center piece of Washington's efforts to address the nation's housing situation. The bill includes, among other things, an appropriation of $10.88 million for Prince George's County to use for redevelopment of abandoned and foreclosed homes. The Prince George's County Association of REALTORS® was invited by the County Executive to meet with the Department of Housing and Community Development (DHCD) to devise a plan to address the use of the funds. This Tuesday, November 18, that collaboration culminated in the passage of the Prince George's County Neighborhood Stabilization Plan (NSP). THOUGH NOT YET IN EFFECT the plan includes: Down payment and closing cost assistance for eligible buyers (less than 120% of median income) to purchase foreclosed / vacant residential properties. Certain target areas will have priority as well as workforce housing (teachers, police, fire fighters, and more). In general, loans will be in the amount of 3.5% (up to $15,000) and more for target areas and workforce housing. For more details, see the DRAFT Fact Sheet. Down Payment Closing Cost Assistance Program DRAFT Program Fact Sheet Immediate acquisition, rehabilitation and sale of approximately 10 foreclosed/vacant and severely blighted structures to eligible buyers. Through this initiative the proceeds of the sale are "recycled" to acquire more blighted structures for rehab and resale. Mandated housing counseling for purchasers utilizing the NSP program. Through this comprehensive approach (down payment assistance, acquisition, rehab and sale of severely blighted structures) the County anticipates being able to impact at least 675 households, probably more. This translates into 675 vacant, foreclosed properties off of the foreclosure record and back into the hands of caring homeowners. The NSP is not ready for "roll out" at this time. The next step is approval by HUD. The final program guidelines are expected sometime after the first of the year. The first loans should hit the street shortly following the adoption of the guidelines, hopefully by March 2009. PGCAR will continue its work with DHCD in developing the guidelines. We will keep the membership informed as to the progress of this endeavor. In the end it will be you, the members, that will be working to market the foreclosed properties and qualify purchasers under this program.   Legislative Newsletter Archive >>