HUD to give $4 billion for foreclosures

WASHINGTON, Sept. 26 (UPI) -- The U.S. Housing and Urban Development Department has allocated $3.92 billion to respond to the effects of home foreclosures.

The new Neighborhood Stabilization Program will provide states and local areas with targeted emergency assistance to acquire and redevelop foreclosed properties that might otherwise become blighted, a HUD statement said Friday.

"To those areas trying to recover from the effects of foreclosure and declining property values, help is on the way," said HUD Secretary Steve Preston. "Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact. Now the real work begins and HUD stands ready to support these states and communities as they work to stabilize their neighborhoods."

Funding for the program is provided through HUD's Community Development Block Grant Program.