Montgomery, Prince George’s and Baltimore counties may receive an additional $3 million to $6 million total this fall through a federal program that helps communities buy and redevelop foreclosed properties, according to estimates released Tuesday by the Department of Housing and Urban Development.
The program aims to stabilize neighborhoods plagued by foreclosures, after which properties tend to sell at fire sale prices and drag down surrounding property values. The Bush administration awarded $4 billion to various states when it launched the program in 2008.
Those states received a base allocation of $19.6 million each, without regard to varying degrees of need, HUD officials said. Additional funds went to localities that have been severely affected by the foreclosure crisis. The states and localities were given 18 months to dedicate the funds to specific HUD-approved projects.
Full story: HUD foreclosure aid may yield windfall for major Md. localities