The Sacramento area has been hit very hard by the foreclosure crisis. The U.S. Department of Housing and Urban Development (“HUD”) has recently released funding formula allocations and program rules. Allocation of funding was based on state and local need measured by number and proportion of homes in foreclosure, subprime loans, and homes in default or delinquency. Each state receives, at a minimum, $19.6 million for use throughout the state. In addition, severely impacted entitlement jurisdictions whose proportional allocation equals at least $2 million receive their own funding. The State of California and jurisdictions within California will be receiving $529.6 million, or sixteen percent, of the federal grant. In Sacramento County, the unincorporated County, the City of Sacramento and the City of Elk Grove all will receive grants directly from the federal government. The unincorporated County’s grant (which can also be used in Galt and Folsom) is $18,605,460 and the City of Sacramento’s grant is $13,264,829. Unincorporated Sacramento County is receiving the fourth largest allocation statewide, behind Riverside, Los Angeles and San Bernardino Counties, and the City of Sacramento is receiving the largest grant amount of any City in the State. NSP funds are specifically focused on recovery and redevelopment of vacant, abandoned foreclosed homes. However, NSP regulations allow flexibility with use of the funds for rehabilitation, redevelopment, demolition, re-construction and land banking of vacant, foreclosed properties. The NSP funding is intended to complement larger redevelopment efforts, and to make a significant impact on distressed areas. Call me, John Easterbrook, at 916-224-7653 or email me at je@fairoakslender.com to get your share of the funding. Also, you visit http://www.fairoakslender.com to check in of the latest news and events from a local Fair Oaks lender.