HUD's Neighborhood Stabilization Program (NSP)
Has anyone participated in any of these? HUD's NSP funds, part of the Recovery Act, are passed onto the states and local municipalities, and there seem to be a lot of state/local control over how the funds are used. For instance, the state of VA seems to want to use the money to buy REOs, rehab and sell to investors. Milwaukee, WI, on the other hand, makes forgivable loans, matching investor dollar for dollar on rehabs (up to $17.5k per unit on rehab), for investors to buy and rehab foreclosed properties in certain hard hit areas (just one of three ways they use the money), where the "catch" seems to be a 5 or 10 year holding period where the tenants cannot make more than 120% of the areas median income. That doesn't seem to be a bad deal, other than the red tape they require. In areas where investors are eligible for such things, are any of you doing so? Know of anyone doing anything like this?
HUD's got a list of criteria for areas the money can be used, but like I said, how to spend it appears to be up to the state or municipality. Any really good programs out there available to investors? Your kids are paying for it, might as well take advantage of it if you can!