Feds approve funds for Barrett’s foreclosure plan

Milwaukee Mayor Tom Barrett has been notified by the U.S. Department of Housing and Urban Development (HUD) that the city’s action plan to spend its $9.2 million Neighborhood Stabilization Program (NSP) allocation has been approved.

The city’s plan includes assistance for homebuyers purchasing foreclosed properties, rental unit rehabilitation, large project rental development, acquisition, rehabilitation and resale for homeownership, demolition of unsafe structures and a land bank.

"We’ve created an ambitious plan to further address the needs of Milwaukee’s neighborhood created by the foreclosure crisis. We’re eager to begin implementing meaningful solutions," Barrett said.

In addition to receiving the $9.2 million, the city is also applying for NSP funds from the State of Wisconsin’s $38 million allocation in order to address the full scope of crisis. Additional funds secured from the state will be used to bolster activities already identified in the city’s action plan, Barrett said.

For the last two years, the City of Milwaukee and many partners have been working to address foreclosure issues and the impacts of subprime and predatory lending in the community.

Last September, Barrett convened the Milwaukee Foreclosure Partnership Initiative (MFPI), a public-private partnership of lenders, foundations and community stakeholders with the primary goal of addressing the foreclosure crisis using a three-tiered approach: prevention, intervention and stabilization.

As of today, there are 1,868 foreclosed properties identified in the City of Milwaukee.  An additional 4,841 foreclosure filings have been opened.

The city’s NSP Action Plan can be viewed at www.city.milwaukee.gov/CommunityDevelopment310.htm.

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