Community Support

HUD's Neighborhood Stabilization Program

Under Title III of the Housing and Economic Recovery Act HUD is awarding emergency assistance grants to states, cities and counties to acquire and redevelop foreclosed and abandoned properties in order to stabilize communities hardest hit by foreclosures, subprime loans and delinquencies. The regulations for the Neighborhood Stabilization Program (NSP) grantees are published in the Federal Register.

NSP grantees must develop their own programs and funding priorities, using at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes and properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low and moderate income persons whose income does not exceed 120 percent of area median income.

States and local communities are required under the NSP to purchase foreclosed or abandoned homes at a discount to current market value and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. See Title III of the Housing and Economic Recovery Act.

Implementing a Neighborhood Stabilization Program

MorCap can provide valuable assistance to states, cities and counties seeking to develop their NSP programs for the acquisition and redevelopment of foreclosed and abandoned properties on an expedited basis and without making costly mistakes in this highly regulated area. MorCap will source pools of REO properties at deep discounts to current market values to insure compliance with Title III requirements.

Current Subprime Mortgage Conditions in the US

In order to view the number of home loans delinquent, in foreclosure and the number of REO properties at the state and county level please see the following link to the New York Federal Reserve Bank.

MorCap is proud to support the following community development, civic and non-profit groups:

Housing and Economic Recovery Act of 2008

See full text of the law here.

*Consulting agreement will determine the specific level of REO consulting and asset management services provided on each transaction.