Massachusetts Received $54.8 Million Funds from HUD

September 30th, 2008

Massachusetts Received $54.8 Million Funds from HUD
US Department of Housing and Urban Development has provided a fund of $54.8 million to Massachusetts on 28th September to help them fight with the increasing number of home foreclosures there. The neighborhood areas from Dorchester to Springfield will benefit a lot from this federal fund. This is expected to give some relief to the real estate industry of the region.

There are loads of abandoned properties in Massachusetts. Out of the total funds provided, $2.57 million will be given to Springfield, $2.15 million to Brockton, $2.39 million to Worcester, and $4.23 million to Boston. However, the biggest portion has been given to the Commonwealth. This amounts to $43.47 million.

The Commonwealth is going to distribute this amount throughout the state. The officials of various communities and state of Massachusetts were waiting for a financial aid as a part of the $3.92 billion fund for real estate stabilization that was passed by Congress in this year’s summer. This fund aimed at assisting the cities and areas that have been heavily hit by home foreclosures. The officials of the government have got 18 months to invest the new funds. This money can also be used to assist the low as well as moderate income homebuyers to cover their closing costs or down payments.

US Department of Housing and Urban Development has got plans to conduct a new program whereby some national housing summit and regional conferences will take place at Washington, D.C. on October 7 and 8. During the course of this program, the officials of local and state bodies will be explained on how to use the funds to help people facing foreclosure. According to Tina Brooks, undersecretary of the Massachusetts Executive Office of Housing and Economic Development, “We want to make sure the bulk of the money is spent on acquiring and rehabilitating foreclosed property across the Commonwealth. We need every penny of it.”

The rate of foreclosures throughout Massachusetts has increased from 4,920 last year to 8,804 this year. It has almost doubled. In the month of August, nearly foreclosure deeds have been recorded in the state. Thomas M. Menino, Mayor of Boston has said, “Foreclosure is a personal tragedy for families but also a disaster for neighborhoods,” He has also said that a major portion of the funds will be used to help areas like Hyde Park, Dorchester, and Roxbury, that are facing the brunt of foreclosures heavily. Besides, technical and financial assistance will be provided to the new buyers of properties in these affected areas.