Congress has approved a $4 billion federal Neighborhood Stabilization Program, but as the funding trickles down to cities, many find the money too tight to solve many of their problems.
"The federal stabilization program is barely up and running. But already, many states and localities are frustrated by the small sums involved and how the Department of Housing and Urban Development is allocating the grants. The problems are an indication of how federal efforts to halt the foreclosure crisis have proven inadequate to the task."
"Nationwide, some 5.2 million homeowners are expected to lose their houses between 2008 and 2010, according to Economy.com, a research firm."
"HUD recently announced allotments for 308 cities, counties and states. Using a formula based on population, foreclosures and the concentration of subprime mortgages, HUD divvied up the money in grants ranging from $2 million for Pittsburgh to $32 million for Los Angeles. The formula has led to some disparities. California, with 560,000 foreclosures, will receive $529 million, including grants to state and local governments. Meanwhile, Florida, which has half as many foreclosures, gets $541 million."
FULL STORY: Housing-Crisis Grants Force Cities to Make Tough Choices
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