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State plans announced for $2.1B in TARP money

Money will be used to stem foreclosures, assist unemployed

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Housing Finance Authorities in five states where home prices have fallen by 20 percent or more have a green light from the Obama administration to put $1.5 billion in TARP funds to work on foreclosure prevention plans. HFAs in Arizona, California, Florida, Michigan and Nevada are the first to benefit from a "Hardest Hit Fund" program announced in February to funnel $2.1 billion from the Troubled Asset Relief Program (TARP) into foreclosure prevention programs (see story). A second round of $600 million in funding has been earmarked for five additional states with areas of high concentrations of unemployment: North Carolina, Ohio, Oregon, Rhode Island and South Carolina. The Treasury Department, which administers the TARP program, is currently reviewing proposals submitted by HFAs in those states. Treasury today said it had signed off on programs submitted for approval on April 16 by HFAs in Arizona, California, Florida, Michigan and Nevada -- the five states with the highe...