April 1, 2010
State officials will allocate $88 million in federal cash to shore up the housing market in areas hit hardest by recession woes
Oregon will get $88 million in federal funds to help homeowners stay in their homes and avoid foreclosure.
The first Housing Finance Agency funds targeted states with home price declines greater than 20 percent. The second Hardest Hit Fund targeted five states - including Oregon - with high concentrations of people living in economically distressed areas, defined as counties in which the unemployment rate exceeded 12 percent in 2009.
Under the program, Oregon's Housing and Community Services can submit proposals for innovative housing initiatives designed for parts of the state that have experienced severe damage to the housing market. The funds could be used to help homeowners by modifying mortgages, clearing the way for sales of some homes to avoid foreclosure and providing loan principal reduction programs for borrowers with serious equity problems.
U.S. Rep. David Wu, representing Oregon's 1st Congressional District, said the fund would help many homeowners avoid mortgage delinquency and keep their homes.
"These much-needed federal dollars will give our housing finance agencies resources to bolster their foreclosure prevention and housing market stability work," Wu said.