Friday, June 26, 2009

$40 million in federal housing stabilization money not working in Phoenix

In April 2009, the city of Phoenix received $40 million in federal stimulus money under the Neighborhood Stabilization Program. This program is designed to put a floor on house prices by providing zero-interest loans of up to $15,000 to home buyers to cover downpayments and closing costs on purchases of foreclosed homes.

The number of home buyers who have used this program to date: zero.

Several hundred people have applied for the program, but none has purchased a home yet.

The program requires that buyers have incomes between $55,350 and $104,400, depending on size of family, must complete eight hours of financial counseling in budgeting and home ownership, and must invest $1,000 of their own money. The NSP loan must be repaid in the event that the home is sold or refinanced.

(Via ABC15.com.)

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