Stimulus Package: Neighborhood Stabilization Plans - Benefits to Realtors and First-time Home Buyers in Down River, Washtenaw County, Michigan

A bill passed in February to provide funding for the Neighborhood Stabilization Program (NSP), which was created to provide grants to address problems created when entire neighborhoods are decimated by foreclosures.

The funds can be used to purchase, manage, maintain, demolish or repair and resell foreclosed and abandoned properties. States and localities can use these funds to establish financing methods for the purchase and redevelopment of foreclosed houses.

Funds can also be used to offer financial assistance to low and middle income home buyers. After purchase with these funds the homes must be used to assist qualifying families who are considered to be low-income and 25% of the funds must be used to help households with income at or below 50% of the area median.

Funding will be focused on areas that need it the most with need-calculations being determined by HUD based on the capacity of the lead applicant to execute projects, leverage potential and concentration of investment to achieve neighborhood stabilization.

Realtors who are knowledgeable of the different provisions in the Stimulus Package can make important contributions to their local community neighborhood stabilization program. They can provide advice to home buyers about utilizing helpful programs that they may not be aware of.

Realtors can use their knowledge of the neighborhoods to stimulate sales in neighborhoods where there are a lot of foreclosures and vacant houses. Unoccupied homes destroy property values; neighborhoods are much more desirable when there are no rundown properties suffering from lack of maintenance.

Other provisions of the Stimulus Plan include:

First Time Homebuyer Tax Credit
FHA, Fannie Mae and Freddie Mac Loan Limits
Commercial Real Estate
Rural Housing Services
Low Income Housing Grants
Tax Exempt Housing Bonds
Energy Efficient Housing Tax Credits and Grants
Transportation Investments
Broadband Deployment

Mark Goedert of Goedert Real Estate provides information, products and resources for real estate investors, REO agents, first-time home buyers and individuals who are selling their home.


Mark Goedert serves clients in the Down River area, Calhoun, Battle Creek, Marshall, Albion, Hillsdale, Ingham, Lansing, Okemos, Mason, Jackson, Lenawee, Adrian, Tecumseh, Hudson, Livingston, Howell, Brighton, Pinckney, Macomb, Sterling Heights, Warren, St. Clair Shores, Monroe, Temperance, Bedford, Oakland, Farmington Hills, Royal Oak, Southfield, Washtenaw, Ann Arbor, Ypsilanti, Saline, Wayne, Detroit, Dearborn, Livonia, Canton, Trenton and more in South East Michigan.