By Derek Kravitz
Monday, April 6, 2009
Loudoun County will receive $2 million in federal money to provide loans and purchase and renovate foreclosed houses in areas hit hard by the financial crisis.
Virginia Gov. Timothy M. Kaine (D) announced today that Loudoun would get the state-channeled funds, which the county can use to purchase or offer housing loans for about 30 properties through the Neighborhood Stabilization Program.
County officials agreed to match that amount with $1.6 million.
The $4 billion federal foreclosure program, which is run by the U.S. Department of Housing and Urban Development and administered in Virginia by the state's Department of Housing and Community Development, was created last July by the Housing and Economic Recovery Act of 2008.
Virginia has received $38.7 million through the program and the Loudoun grant is one of a few to be handed out so far. Caroline, Spotsylvania and Stafford counties and the city of Fredericksburg will split another $5 million, in partnership with the Central Virginia Housing Coalition.
Prince William and Fairfax counties have already received money from the program — $4.1 and $2.8 million, respectively. Other Northern Virginia jurisdictions are eligible to apply for money from the state pot.
Loudoun County's foreclosure rate jumped to 2.3 percent last year. Areas of eastern Loudoun County, including townhouses and single-family houses in Sterling Park and Sugarland Run, have been the most affected, county officials say, with foreclosure rates in those neighborhoods rising well above 2 percent and the statewide average of 1.73 percent.
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