HUD Money Released

by admin on February 27, 2009

HUD is getting much needed money to different housing authorities and other agencies across the country. $10 Billion of funding will be released through the American Recovery and Reinvestment Act of 2009. This money comes only one week after Obama signed this act and is quite a quick disbursement period, but much needed given the current state of the economy and the housing market.

“I am pleased to announce that we are moving swiftly to get these much-needed funds out to states and cities to create jobs and help stimulate our economy,” said HUD Secretary Shaun Donovan.

This money should be a positive jolt to many people in subsidized housing and will help create jobs in related fields. Some of the areas this money will effect have been extremely hard hit by the economic downturn and this is coming in none to soon. The majority of the money $3 Billion is going to over 3,000 public housing authorities to help upgrade many subsidized housing communities throughout the country. Many renovation projects will be funded by this money in conjunction with private sector financing.

Rental housing projects will receive funding through the Tax Credit Assistance Program – the different housing agencies will be able to distribute funds and give priority to projects starting as soon as March, 2009. There is also $1.5 Billion set aside for the Homeless Prevention Fund to help rehab homless shelters throughout the US.

Loan limits will be increased – the Home Equity Conversion Mortgage will be raised up from the old limit of $417,000 to $625,500.

This new HUD money should help kick start some decent sized projects in many states across the US. If done right this could help get a few construction companies back in business and allow them to even hire some new workers. Creating jobs is a huge priority and if that can happen in construction, that will go a long way to providing for people who are out of work and desperately need it.

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