Senate Passes Financial Reform Bill - Includes Neighborhood Stabilization Program Funds

Published on July 16, 2010

After passing a motion to proceed on the conference report of the Wall Street Reform and Consumer Protection Act, HR 4173, the Senate yesterday passed the sweeping financial reform bill 60-39. The bill includes $1 billion for a third round of Neighborhood Stabilization Program (NSP3) funds.

The Neighborhood Stabilization Program has been instrumental in assisting states and local governments to acquire and redevelop foreclosed properties. Rhode Island received $19.6 million in the first round of NSP funding to target 11 communities hardest hit by foreclosures.

In NSP3, all states, including Rhode Island, are ensured a small state minimum of funding, although final figures are still forthcoming. In addition, state and municipal governments hardest hit by foreclosures are eligible to receive additional funds to help redevelop properties.

President Obama is expected to sign the bill into law next week, giving many states the assistance needed to stabilize their communities suffering from the foreclosure crisis.