Olneyville in Providence Featured on CNNMoney.com

Published on October 21, 2010

CNNMoney.com recently visited the Olneyville neighborhood of Providence to see the great work being done by the Olneyville Neighborhood Corporation. The article, entitled "What $1 million buys in a blighted neighborhood" highlights the success of the Neighborhood Stabilization Program, (NSP)  - federal funding meant to stabilize communities hit hard by foreclosures.

According to HousingWorks RI's foreclosure analysis, the Ocean State still ranks highest in New England for foreclosures, with over 14,000 mortgages either in the foreclosure process or more than 90 days delinquent during the first quarter 2010.

Rhode Island received $19.6 million in the first round of NSP, which was funded as part of the Housing and Economic Recovery Act in 2008. The Rhode Island Office of Housing and Community Development, in partnership with Rhode Island Housing, used NSP1 funds to target 11 communities hardest hit by foreclosures in the Ocean State.

Most recently, Rhode Island was awarded $6.3 million in the third round of funding for NSP. NSP3 allows states and local governments to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer down payment and closing cost assistance to low- to moderate-income homebuyers. Additionally, "land banks" can be created to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or development of urban property. In an effort to prevent future foreclosures, NSP also requires that families receiving homebuyer assistance first receive housing counseling.

As seen in CNNMoney.com's article, the purchase and redevelopment of foreclosed and abandoned homes and residential properties is having a great impact on our local communities.