Denver is going to get a boost from the recently announced 29.3 million Neighborhood Stabilization Program funding in 2010. There are high hopes that this stimulus plan will help the City of Denver's efforts to combat the foreclosures that have been a problem since the housing bust. This will not only improve Denver real estate, it will produce thousands of jobs for people involved in construction.
The Neighborhood Stabilization Plan – via the Housing and Economy Act of 2008 – was developed to combat the ills that foreclosed properties can bring upon a neighborhood – lowered home values, abandonment, higher crime and gradually spreading urban blight. With the funding provided through the Plan, Denver can now buy, renovate or redevelop and resell properties that have been foreclosed upon.
In 2010, the Denver Office of Economic Development and Chicanos Por La Causa, Inc. will receive $ 18,994,444 and $ 10,263,440, respectively. This will be used to solve problems caused by residential foreclosure and to boost revitalization efforts in Denver neighborhoods that have been most affected by foreclosures and the problems associated with them.
The Denver Office of Economic Development will be targeting 12 Denver neighborhoods to purchase and revitalize properties affected by foreclosure. In all, 325 properties will be selected and restored to create accessible, affordable housing for:
Households with income not exceeding 120% of the area median income
Households at or below 50% of the area median income.
The redevelopment plan also includes:
rehabilitation of 245 abandoned / foreclosed homes
land bank of 15 properties
demolishing of 50 vacant properties
redevelopment of 35 vacant / demolished properties for housing
Loan assistance for 195 low-moderate income households will also be available for the purchase of homes near public transit lines. This targets raising home values, job creation, improved public transit and local business development and patronage. In the years to come, this will stabilize the neighborhoods where these homes are and provide a platform where the real estate in general starts increasing in value.
The Neighborhood Stabilization Plan is working towards raising home values and providing low-median income households with the opportunity of home ownership. The City of Denver’s strong support of revitalization efforts means that home buyers today are likely to see rising home values and equity in the future. It’s a good time to look into buying real estate in Denver, especially for people with moderate incomes.