Madison (WKOW) -- from WI Governor's Office: Governor Jim Doyle announced Tuesday $39 million to help redevelop foreclosed properties throughout Wisconsin in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
The effort is part of the Neighborhood Stabilization Program within the Department of Housing and Urban Development (HUD).
"Foreclosures have a devastating impact on neighborhoods and the state's economy and we must do all we can to not only prevent foreclosures but also help rehabilitate impacted neighborhoods," Governor Doyle said. "These Neighborhood Stabilization funds will allow us to take our statewide foreclosure efforts to an even higher level."
The neighborhood stabilization grant can be used to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low- to -moderate income home buyers.
The NSP also seeks to prevent future foreclosures by requiring housing counseling for families receiving home buyer assistance.
In determining Wisconsin's allocation, HUD followed Congress's direction that grants be targeted to areas based on the number and percent of foreclosures, subprime mortgages, and mortgage defaults and delinquencies.
The grant was a part of a $3.92 billion announcement by HUD that went out to all states and to communities hardest hit by foreclosures.