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OFFICE OF THE GOVERNOR - AMERICANSAMOA
PRESS RELEASE
(for immediate release – Monday, April 13, 2009)
Contact: click here to email newsroom
Office: (684) 633-4116 - Fax: (684) 633-2269 - Cell: (684) 733-4680
Gov. Togiola announces $100,000 Neighborhood Stabilization Program for abandoned homes
(UTULEI) – Governor Togiola Tulafono today announced the U.S. Department of Housing and Urban Development (HUD) has awarded $100,000 to American Samoa to be used to redevelop abandoned homes.
Governor Togiola said the funds from the Neighborhood Stabilization Program (NSP) --created to assist in the redevelopment of abandoned and foreclosed homes-- will be used by the Department of Commerce (DOC) in conjunction with the Development Bank of American Samoa (DBAS) to redevelop abandoned homes and residential properties.
“I welcome this much-needed program as it will provide another boost in our economy. The Neighborhood Stabilization Program funds will be used to create housing, retain jobs, or serve a limited clientele and it will benefit persons whose household incomes do not exceed 120 percent of the area median income,” said Governor Togiola. “These funds will be a great help and we’re putting these federal dollars to good use in making a meaningful impact with the primary activities that DOC and DBAS will implement with the NSP funds.”
Governor Togiola said Department of Commerce will acquire 6 to 12 properties, abandoned or idled, to ultimately make available for low- and moderate-income families and individuals to repurchase. Also, they will renovate and rehabilitate the abandoned properties and sell them to HUD’s HOME program eligible clients with financing provided by HOME program funds administered by DBAS.
“DOC will then use the proceeds of the home sales to redevelop other abandoned or idle properties thereby increasing the decent affordable housing stock available for low- and moderate-income families and individuals to repurchase,” said Governor Togiola. “DOC Director Faleseu Eliu Paopao and his staff are prepared to use these funds to specifically acquire abandoned properties, to rehabilitate them, and to resell them to persons who meet the applicable eligibility requirements. These funds will have a lasting positive impact with the planned activities for this project as they will ensure these properties will be acquired for rehabilitation and redevelopment rather than sitting empty and idle.”
Created under the Housing and Economic Recovery Act of 2008 (HERA), the Neighborhood Stabilization Program is designed to assist jurisdictions in the redevelopment of abandoned and foreclosed homes. Funds were allocated to jurisdictions based on a formula incorporating data regarding the number of home foreclosures, homes financed with sub-prime loans, and home default or delinquency rates.
Funds provided under the NSP are considered as a special allocation of Community Development Block Grants (CDBG) for Fiscal Year 2008. Given that NSP grants are construed as CDBG Funds, the NSP grant is generally subject to CDBG requirements except where some were waived or altered specifically for the Neighborhood Stabilization Program.
Reauthorized by the American Recovery and Reinvestment Act of 2009 (ARRA), the Neighborhood Stabilization Program has another $2 billion dollars available as competitive grants on top of the $3.9 billion already awarded as formula grants by HERA, NSP’s original enabling statute.
It was not certain whether DOC, DBAS or other ASG entity would be applying for competitive NSP Funds under ARRA.
For more information, please contact: Mr. Pat M. Galea'i, Executive Director, A.S. Economic Stimulus and Recovery Office (ASESRO): patgaleai@americansamoa.gov
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