Director’s Corner: Homebuyer Assistance is Great Addition to NSP

This month, I want to share with you some exciting developments with Wayne County’s Neighborhood Stabilization Program (NSP).

The federal Neighborhood Stabilization Program (NSP) was established through the Housing and Economic Recovery Act of 2008. NSP was designed and funded to assist governments across the country stabilize areas hit hardest by foreclosures and abandonment. In total, the U.S. Congress allocated $3.9 billion to NSP, and Wayne County was the recipient of $25.9 million in funds.

Executive Ficano’s objectives for NSP were simple and straightforward: direct grant funds into areas with high levels of foreclosures and abandoned property, and leverage the grant funds with private investment to create a bigger impact. We also aimed to empower communities and residents, build partnerships, and link NSP use to other Wayne County programs like the Land Bank and Mortgage Foreclosure Prevention Program (MFPP).

At this point in time, Wayne County’s Economic Development Growth Engine (EDGE) has identified 100 percent of the NSP-eligible projects within Wayne County, and all NSP dollars will be obligated by September 2010. Projects include demolition of blighted structures, rehabilitation of foreclosed homes, and land acquisition for future community development projects.

We are also very excited to announce a new Wayne County initiative called the Wayne County Homebuyer Assistance Network. Using a portion of the County’s total NSP allocation and building off other NSP funds for home rehabilitation, the Homebuyer Assistance Program is a one-of-a-kind program to empower people to become successful homeowners. Through the Homebuyer Network, we will give new homeowners financial assistance, the option to choose from an inventory of rehabilitated and foreclosed properties, and the training and skills to maintain their homes. Up to $25,000 will be available for down payment assistance when the homebuyer is ready to close on a home.

The Network’s other services will include credit repair, mortgage processing, and intense home ownership counseling. We want to make sure when they take the keys to their homes, our homebuyers have received the most comprehensive preparation to own and maintain a home. Owning a home is a symbol of opportunity and freedom, and home ownership is what makes neighborhoods, communities, cities and townships viable and stable. I want to thank Jill Ferrari, EDGE’s Community Development Director, for making the Homebuyer Assistance Network a reality.

We understand that community stabilization involves more than just putting money into physical projects. It’s also about helping people feel part of the community through home ownership, and giving them the skills to maintain their home and maintain the overall integrity of their community. Through partnership with local community groups and private investors, we are able to do more with less just as our families have learned to do during challenging economic times.

In future editions of the EDGE newsletter, I will provide updates on the progress of NSP-funded projects including more information on the Homebuyer Assistance Network.

Turkia Awada Mullin is the Chief Development Officer for EDGE