Industry NewsMarkets & Economy

$4 billion in foreclosure grants coming

Databases show markets most likely to get funding

A spreadsheet that shows the prevalence of subprime lending and delinquency and foreclosure rates in more than 1,000 housing markets could provide an indication of where nearly $4 billion in federal grants will be spent to help state and local governments buy foreclosed and abandoned homes. The spreadsheet, produced by researchers at the Local Initiatives Support Corp. (LISC), is intended to help local officials assess needs within states that were allocated funds at the end of September. State and local governments must submit an action plan by Dec. 1 detailing how they will distribute the Neighborhood Stabilization Program funds, which are supposed to go to high-risk areas with the greatest percentage of subprime loans and foreclosures. To help identify high-risk areas, LISC calculated "foreclosure needs scores" for geographic areas at the Community Development Block Grant (CDBG) jurisdiction level. According to the Center for Housing Policy's