The Housing and Economic Recovery Act (HERA) of 2008 was approved by
Congress on July
30, 2008 with regulations for the program issued on September 29, 2009.
The program is being
administered by the U.S. Department of Housing and Urban Development
(HUD). The overall
purpose of the program is to assist in the redevelopment of abandoned or
foreclosed homes under the portion of HERA entitled Emergency Assistance
for Redevelopment of Abandoned and
Foreclosed Homes. The program has been titled the Neighborhood
(NSP). On the national level, the bill appropriates $3.92 billion for
In order to be able to distribute the funds as quickly as possible to
meet identified needs, HUD
has, in the regulations for the program, determined that an amendment to
the CDBG Annual
Action Plan for Fiscal Year 2008 will be the most efficient method. The
$3.92 billion has been
allocated to CDBG recipients on a formula basis contained in the HERA.
For a CDBG recipient
to receive a direct allocation of funds, the application of the formula
had to result in the recipient
being allocated a minimum of $2,000,000.
Flint has received an allocation of $4,224,621. The NSP regulations
require that an application
describing the use of the funds be submitted to HUD no later than
December 1, 2008. After
review and approval of the application by HUD, Flint will have 18 months
to commit the funds
to program purposes described in the application with all funds expended
within four years.