Congresswoman Waters Announces that L.A. County Will Receive $16.8 Million to Stabilize Neighborhoods Hurt by Housing Foreclosures

Congresswoman Maxine Waters (CA-35) announced today that the U.S. Department of Housing and Urban Development (HUD) has approved a plan from the County of Los Angeles to help homeowners and stabilize neighborhoods suffering from the effects of high foreclosure rates and declining home values. The County of Los Angeles will receive $16.8 million in funds from the Neighborhood Stabilization Program (NSP) to help acquire and redevelop foreclosed properties in targeted neighborhoods.  Congresswoman Waters announced earlier this month that the City of Los Angeles will receive $32.8 million in funds for similar purposes.

"I have worked hard to make sure that Congress provides help for homeowners.  Much of the response to the nation's economic crisis has focused on bailing out banks and corporations, but I have emphasized the need to provide help for our neighborhoods and communities where foreclosed properties have caused home values to fall further and diminished the quality of life for residents.  The Neighborhood Stabilization Program funding that Los Angeles receives will make a real difference," said Congresswoman Waters, who chairs the Financial Services Subcommittee on Housing and Community Opportunity.

Congresswoman Waters worked with leaders in Congress to secure neighborhood stabilization funding for Los Angeles and other communities.  She introduced the Neighborhood Stabilization Act (H.R. 5818) last year to authorize a federal grant and loan program to help cities, counties and states purchase, rehabilitate and resell or rent foreclosed homes and in turn create rental and ownership opportunities for low- and moderate-income families.

In addition, she was the leading advocate in Congress for neighborhood stabilization funding and succeeded in gaining Congressional approval for $4 billion for this purpose.  Congresswoman Waters insisted this funding be included in legislation despite a threat by President Bush to veto it.

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