Indiana is in line to receive $152 million in federal funds to help combat foreclosures as part of its share of the federal Neighborhood Stabilization Program. The funds can be used to redevelop vacant or foreclosed properties and help low- to moderate-income homebuyers purchase properties.
About $68 million of the funds will be distributed directly by the U.S Department of Housing and Urban Development to cities and counties across the state. Of the federal funding, roughly $29 million is slated to go to Indianapolis.
The state will distribute the remaining $84 million. Officials said they plan to use the funding to help local governments set up redevelopment programs and establish a loan fund for low- to moderate-income homebuyers who are interested in purchasing abandoned or foreclosed houses. Roughly $45 million would go toward helping local governments with neighborhood redevelopment and $30.4 million would go into the fund.
"We want communities to develop programs that will be meaningful and make a positive difference, and we will show preference to cities and towns that are not receiving a direct federal share," Gov. Mitch Daniels said in a statement.
The funds are Indiana's share of $3.92 billion appropriated to all 50 states and more than 250 cities and counties to help deal with growing home foreclosures.