Department for Local Government
Gov. Beshear Announces $1.3 million for Neighborhood Stabilization in Purchase Region
MAYFIELD, Ky. (May 11, 2009) – Gov. Steve Beshear today announced that the Purchase Area Housing Corporation (PAHC) has been awarded $1,372,500 from the Neighborhood Stabilization Program (NSP) to help stabilize communities in southwestern Kentucky that have suffered from foreclosures and abandonment.
PAHC, which serves the eight-county Purchase Area Development District region, will use the funds to acquire, rehabilitate and resell foreclosed and abandoned properties that might otherwise become sources blight within neighborhoods.
“The improvements that will result from the Purchase Area Housing Corporation’s project will benefit neighborhoods by returning vacant homes to productive use and providing new opportunities to deserving families for homeownership,” said Gov. Beshear. “Together, these activities will help stop the decline of property values and continue to support the area’s tax base and its ability to continue providing quality local services.”
Once PAHC purchases and makes 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 PAHC, which is a U.S. Department of Housing and Urban Development approved housing counseling agency.
“We’re excited to be given the opportunity to upgrade foreclosed properties and serve the housing needs of the Purchase region by making these homes available for lower income families,” said Tom Meurer, housing director for the Purchase Area Housing Corporation. “We’re pleased that Gov. Beshear and the Department for Local Government approved our project as one of many that will help families and neighborhoods throughout the state.”
The investment of dollars in the region 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.