Virginia Governor Kaine Announces $17.5 Million to Purchase/Rehabilitate Foreclosed Homes

Governor, Congressional delegation discuss solutions to the crisis at Regional Forum

June 08, 2009 --

RICHMOND - Virginia Governor Timothy M. Kaine today announced the award of $17.5 million in Neighborhood Stabilization Funding to localities for purchasing and rehabilitating foreclosed homes so that they can be resold to low-to-moderate income families. This announcement follows the award of $7 million in funding in April.

"We have worked quickly to put together an effective program to address the impact of foreclosures across the state," Governor Kaine said. "Virginia is not immune from our national economic problems, and we are continuing to take steps to ease the housing crisis by finding and applying solutions."

Of the $17.5 million, $15 million is targeted to 29 high-need neighborhoods, and will result in the rehabilitation of approximately 136 homes at a discount price. The remaining $2.5 million is being awarded collectively to Frederick, Shenandoah, and Warren Counties to address the increasing foreclosure crisis in the Northern Shenandoah Valley.

Today's announcement came as Governor Kaine hosted U.S. Senators Jim Webb and Mark Warner; Congressmen Frank Wolf, Jim Moran and Gerry Connolly; Northern Virginia state legislators, and more than 200 citizens to hear firsthand housing issues and proposed solutions from Virginia's mortgage brokers, homebuilders, realtors, housing advocates, and local government officials. Also speaking at today's meeting was Michael S. Barr, Assistant Secretary for Financial Institutions at the U.S. Department of the Treasury.

"This forum is an opportunity for all the needed partners to hear from each other on the issues facing housing in Virginia. This forum builds upon the work of the Virginia Foreclosure Prevention Task Force and our collective efforts to date," Governor Kaine said. A full agenda is available at www.dhcd.virginia.gov/pdfs/HousingForumAgenda.pdf.

The Neighborhood Stabilization Program is an initiative to ease the impact of foreclosures on neighborhoods severely hurt by the housing crisis. In the last two years alone, Virginia's foreclosure rate has increased sevenfold from 0.24% in 2006 to 1.73% in 2008, with approximately 16,000 foreclosed homes remaining vacant around the Commonwealth. The $17.5 million will be distributed as follows:

Alexandria	$936,955
Fairfax County	$1,000,000
Habitat for Humanity of Virginia	$1,500,000
Hampton	$2,000,000
Newport News	$700,000
Norfolk	$1,794,375
PEOPLE Incorporated in partnership with the City of Bristol	$859,330
PEOPLE Incorporated in partnership with the Russell County	$1,162,670
Portsmouth	$2,000,000
City of Richmond	$2,000,000
Suffolk	$971,444

The remaining $2.5 million, which will be administered in collaboration with the Northern Shenandoah Valley Regional Commission, will address neighborhoods in the Sensey Corridor, Stephens City, Northwest and Central Front Royal and Pendleton.

For more information about the NSP, visit: www.dhcd.virginia.gov/nsp.

The Virginia Foreclosure Prevention Task Force which Governor Kaine established in 2007 brought together mortgage industry representatives, housing consumer advocates, policy experts and researchers to develop strategies to prevent foreclosures and minimize the impact of foreclosures on the citizens of the Commonwealth and the state economy.

Since its creation, the task force has:

* Facilitated five Education and Outreach Mortgage Clinics for distressed borrowers in Richmond, Tidewater, Roanoke, Woodbridge and Chantilly, with more than 900 homeowners attending these individualized counseling sessions;
* Administered training for 341 new Foreclosure Mitigation Counselors across the state;
* Disseminated an extensive education and outreach campaign through public service announcements in English and Spanish through television, cable, radio and print media;
* Facilitated the passage of Senate Bill 797 (2008 General Assembly session) – providing additional time for homeowners to work with lenders prior to foreclosure; and
* Established the Virginia Foreclosure Prevention Task Force Web site.

Source: Virginia Governor