Adams County Launches Neighborhood Stabilization Program to Address Problems Arising From Foreclosed Homes

Beginning on March 20, 2009, Adams County has 18 months to commit $4,600,211 in Neighborhood Stabilization Program funding from the U.S. Department of Housing and Urban Development (HUD). These funds are part of the Housing and Economic Recovery Act of 2008, designed to address problems associated with the rising number of foreclosed homes resulting from the subprime mortgage crisis. Primarily, the funds will be used to purchase and develop foreclosed homes, demolish blighted areas and help low- and moderate-income families purchase their first home.

To maximize the strategic use of funds and streamline reporting and monitoring requirements, Adams County is partnering with the Adams County Housing Authority. On March 30, 2009, the Adams County Board of Commissioners awarded administration of the stabilization program to the housing authority, which has a solid history of performing the types of activities involved in the program. The housing authority has 35 years of experience developing and managing housing throughout Adams County, a long history of federal grants management, and the internal capacity to administer every activity of the Neighborhood Stabilization Program.

“The Neighborhood Stabilization Program is vital to rectifying the housing situation in Adams County,” said Chairman of the Board Larry W. Pace, “with the Housing Authority’s solid track record of administering these types of programs, we have every confidence that they will manage it in the best way possible.”

Already a HUD-approved housing counseling agency, the Adams County Housing Authority facilitates all aspects of the county’s housing programs from first-time home buying to foreclosure prevention counseling. They offer a variety of direct services to preserve affordable housing and economic independence for county residents. As a result, the housing authority will be able to use the staff and resources they already have to seamlessly and cost-effectively align the stabilization program with their other services.

“The Adams County Housing Authority is excited to be part of such an innovative and collaborative effort to comprehensively address the foreclosure problem that has plagued our community,” said Don May, executive director of the Adams County Housing Authority. “We look forward to working with the county and all the cities to strengthen neighborhoods and provide homeownership opportunities for Adams County residents.”

The county will work closely with the housing authority and municipal partners, including Brighton, Commerce City, Federal Heights, Northglenn, Thornton and Westminster, to ensure effective and efficient implementation of the Neighborhood Stabilization Program. Funding amounts for each municipality were calculated using 90-day vacancy rates, number of subprime loans and foreclosure rates. To further support the stabilization of our community, Adams County has submitted an application to the Colorado Division of Housing for an additional $2,749,808 million of program funding.

For more information on the Neighborhood Stabilization Program, contact Elizabeth Groginsky with the Adams County Community & Economic Opportunity Department at 303.453.8503 or Don May with the Adams County Housing Authority at 303.227.2075.