Kentucky will receive $37 million in federal funds to help communities revitalize distressed neighborhoods and maintain property values.
Gov. Steve Beshear made the announcement Monday in Lexington, saying that cities, counties and non-profits can use the money to buy foreclosed properties at a discount, make repairs and re-sell the homes to Kentucky families.
"These groups can also create more affordable rental housing, tear down dilapidated vacant buildings that lower surrounding property values and purchase land that may be sold later for a profit," Beshear said. These are just a few of the options communities have to prevent the decline of property values.
Applications for money from this Neighborhood Stabilization Program received by last month's deadline are being reviewed, Beshear said. He hopes to announce recipients by the end of the month.
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Lexington has requested $14.5 million from this Neighborhood Stabilization Program, which was created by Congressional action.
Projects are being evaluated based on several factors including an area's percent of home foreclosures, percent of sub prime loans and an area's risk or more foreclosures, and how quickly a project can begin.
Areas of Kentucky hardest hit by foreclosures are Louisville and Jefferson county, Northern Kentucky and Lexington.
Preference will be given to projects that green building technology and renewable energy sources. Special attention will be given to veterans and active members of the miliarty .
Of the total, 9.5 million will specifically be for use by low income families.