FOR IMMEDIATE RELEASE
June 8, 2009
Portsmouth, VA (June 8, 2009) Governor Timothy M. Kaine has announced that the City of Portsmouth will receive $2 million of Neighborhood Stabilization Funding to purchase and rehabilitate foreclosed homes that will be sold to low-to-moderate income families.
The City of Portsmouth applied for and will receive $2 million from the Department of Housing and Community Development which can be used in a maximum of three neighborhoods where the foreclosure rate is at or above 10%. Properties have been identified in the neighborhoods of Westhaven Park, Cradock, and Prentis Park.
The City of Portsmouth, in partnership with the Portsmouth Redevelopment and Housing Authority (PRHA) and the Community Housing Development Organization, CCDI, have identified 12 properties. The next step will be to work with the banks to purchase the properties at 15% below fair market value. As required, the homes will be sold to first-time homebuyers who are currently at or below 80% of the area median income.
The deadline for using the funds is within 18 months. In addition, this Neighborhood Stabilization Funding is a part of a revolving fund program which has the potential of replacing funds when they are used successfully and homes are sold.