Kentucky Governor Beshear announces $2 million grant to Housing Authority of Bowling Green

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May 11, 2009 -- BOWLING GREEN, Ky. – Kentucky Governor Steve Beshear today announced that the Housing Authority of Bowling Green (HABG) has been awarded $2,032,551 from the Neighborhood Stabilization Program (NSP) to help low-income families and individuals purchase homes that have been foreclosed and abandoned in the wake of the country’s economic crisis.

“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 Housing Authority of Bowling Green’s plan will benefit communities by returning vacant lots to productive use while providing new opportunities for homeownership to deserving families.”

HABG will use the funds to purchase, rehabilitate and resell foreclosed or abandoned properties in neighborhoods with the highest percentage of foreclosures or areas that are most susceptible to future foreclosures. This will stem the decline in surrounding property values, as well as provide safe and affordable housing to low, moderate, and middle-income families.

After HABG has purchased and made any necessary repairs to foreclosed homes, they may be sold to families with a household income not exceeding 120 percent of the area median income. In Warren County, a family of four earning up to $65,500 a year will be eligible.

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. The funds will also ensure homebuyers receive at least eight hours of housing counseling from a U.S. Department of Housing and Urban Development (HUD) approved housing counseling agency to qualified homebuyers to assist in procuring the loan needed to purchase the home.

“It is an honor to work with low, moderate, and middle-income families, paving the path to their homeownership, through providing affordable, safe housing in our community,” said Abraham Williams, executive director of HABG. “Additionally, through renovating and selling these homes to quality, hardworking Bowling Green citizens, the neighborhoods in which they are located will be strengthened, being more safe and value stable.”

It is the goal to sell all homes with some being available for lease-to-own for qualified applicants through a special process designed by HABG. The NSP investment can be used as a first or second mortgage financing to make the home affordable for the family.

“The Housing Authority of Bowling Green is both humbled and excited to be given the opportunity to reinvest this award in the stability, safety and quality of Bowling Green and Warren County,” said Williams.

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.

Source: Kentucky Governor