County Executive Isiah Leggett, joined by Raymond Skinner, secretary of the Maryland Department of Housing and Community Development today, announced more than $4 million in funding from the U.S. Department of Housing and Urban Development (HUD) to acquire and renovate foreclosed properties and make them available to county residents.

“Quality of life depends upon the quality of our neighborhoods,” said Leggett.  “Foreclosures can have a tremendous negative effect on our communities, and this funding will assist us in keeping neighborhoods stable, and at the same time, provide homes for families in need.”

Montgomery County received an award of $2,073,965 from HUD’s Neighborhood Stabilization Program (NSP). The funds will be used to enable the County’s Housing Opportunities Commission (HOC) to purchase and rehabilitate foreclosed homes to lease to low-income residents.

In addition, the Maryland Department of Housing and Community Development (DHCD) received funding from the Neighborhood Stabilization Program and established a Neighborhood Conversation Initiative Program. Funds were made available to local jurisdictions through a competitive process, and Montgomery County last week received an additional $2.5 million that will also be used by HOC to purchase and renovate foreclosed properties.

“I’d like to congratulate – and thank – County Executive Leggett for his leadership and commitment to providing affordable workforce housing in his county,” Secretary Skinner said. “Montgomery County is the first jurisdiction to commit significant local resources to affordable workforce housing. I also appreciate the hard work and commitment of Housing and Community Affairs Director Richard Nelson and Annie Alston, executive director of the Housing Opportunities Commission of Montgomery County. It’s been a pleasure working in partnership with them.”

“I am delighted that the Housing Opportunities Commission was asked to participate in this initiative. Creating affordable housing is a key issue for our community right now and the houses we are going to purchase with this money will be affordable to lower income families in Montgomery County,” said Alston.

Leggett made the announcement in front of an Aspen Hill area home purchased by Habitat for Humanity Montgomery County as part of a partnership with the County announced in November 2008. The County is providing up to $350,000 per property from the Housing Initiative Fund to purchase up to 10 homes in 2009. Habitat officials have already purchased three properties in the Aspen Hill and Glenmont areas and by the end of March expect to purchase three additional properties.

“The County has provided Habitat for Humanity with an incredible opportunity to create affordable homeownership opportunities for hardworking families. And while our immediate goal is to provide low-cost shelter and revitalize properties, we also want to ensure that they are affordable to their owners over the long term,” said John Paukstis, Habitat for Humanity executive director. “Throughout the project, we will focus on the use of safe, natural and non-toxic materials to improve indoor air quality and energy saving techniques to ensure healthy and safe living environments.”

Protecting, preserving and creating affordable housing is one of Leggett’s top priorities. During his administration, funding for the Housing Initiative Fund has increased from $20 million just a few years ago to $53 million in the current fiscal year. Leggett’s Fiscal Year 2010 recommended budget calls for $58 million in funding for the Housing Initiative Fund.

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Media contact:  Mary Anderson, 240-777-6507