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

Press Release

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

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

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.

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