Gov. Beshear announces $1.3 million for Neighborhood Stabilization in Pennyrile Region
HOPKINSVILLE, KY – May 12, 2009 – (RealEstateRama) —Gov. Steve Beshear announced that the Pennyrile Housing Corporation (PHC) has been awarded $1.3 million from the Neighborhood Stabilization Program (NSP) to stabilize communities that have suffered from foreclosures and abandonment.
PHC will use the funds to purchase, rehabilitate and resell foreclosed and abandoned properties in Christian County that might otherwise become sources of abandonment and blight within their communities.
“Vacant housing can have a very negative impact on neighborhoods by inviting crime and blight and bringing down surrounding property values,” said Gov. Beshear. “The plan proposed by Pennyrile Housing will help clean up communities by returning vacant lots to productive use while providing new opportunities for homeownership to deserving families.”
After PHC has purchased and made any necessary repairs to foreclosed homes, families with a household income not exceeding 120 percent of the area median income may buy the homes, or in some cases rent them, at a reduced rate. The NSP plan seeks to protect potential buyers by requiring that they obtain a mortgage loan from a lender who agrees to comply with sound lending practices. Homebuyers will also receive at least eight hours of free housing counseling from a U.S. Department of Housing and Urban Development (HUD) approved housing counseling agency.
“The Pennyrile Housing Corporation is honored to have been selected by the Governor for NSP funding,” said Amy Frogue, community development specialist for PHC. “Christian County has the highest foreclosure rate of all nine counties in the Pennyrile region, so this program will be a great stimulus for the local housing and job markets there by increasing the current stock of affordable homes in the area.”
The investment of dollars in Christian County will also boost the local economy through the purchase of building supplies and create skilled and unskilled jobs to assist with the renovation and new construction.
Kentucky’s NSP total statewide allotment of $37.4 million is funded through HUD under the Housing and Economic Recovery Act of 2008. The program, administered by the Department for Local Government, received more than $115 million in applications statewide.
Congress has directed that these grant funds be obligated for specific activities within 18 months.
Contact: Jay Blanton