Chicago Wins $98 Million in Second Round of NSP Funding to Acquire Foreclosed Properties

Chicago will receive a $98 million federal grant to recycle foreclosed homes. The amount, second only to Los Angeles among U.S. cities, reflects and validates the efforts the city and its partners have made in addressing the foreclosure crisis.
 
Only 60 of 482 applicants won grants in the $2 billion second round of the Neighborhood Stabilization Program (NSP2) announced January 14, 2010 by U.S. Housing Secretary Shaun Donovan.  Chicago’s proposal was cited as “responsive to specific neighborhood needs” while “maximizing the impact on local markets.”
 

The grant comes on the heels of NSP1, in which the city received $55.2 million in federal stimulus money to acquire and rehabilitate vacant, foreclosed properties in 25 Chicago neighborhoods. The new grant will be directed to acquisitions in Albany Park, Logan Square/Hermosa, Humboldt Park, South Lawndale, Chicago Lawn, Grand Boulevard, Washington Park, Woodlawn, Greater Grand Crossing, South Chicago and Englewood.
 
So far the program, managed by Mercy Portfolio Services (MPS), has purchased a variety of single-family houses and apartment buildings comprising 95 units. Another 107 are under contract. Rehab work is progressing by NSP-qualified developers – both private and non-profit – participating in the program. Another 200 first-round units are being identified, and many more could be produced as sales proceeds and other funds are brought to bear.
 
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