Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON, DC – The federal Housing Department removed a significant roadblock today, paving the way for Merced County and several of its cities to receive nearly $9.2 million in direct funds through the Neighborhood Stabilization Program.

HUD had blocked those funds after it took issue with the State of California’s plans to distribute $145 million in housing rehab funding. Congressman Cardoza and several other members of Congress from California recently wrote to HUD Secretary Shaun Donovan and requested that the state’s plans be immediately approved.

Today, an announcement was made that in fact the state’s plans were being approved by HUD, ensuring the money would flow to areas struggling with high numbers of foreclosures. 

Merced County and the cities of Merced, Los Banos and Atwater are expected to receive nearly $9.2 million in direct funds through the Neighborhood Stabilization Program.

The funds will be used for the acquisition and rehabilitation of vacant, foreclosed homes that have been taken into possession by mortgage lenders. Authorized under the Housing and Economic Recovery Act, the allocation is crucial for Merced County, which was previously overlooked when other counties received direct funding through the program last fall.

“It is high time that Merced County received a portion of the billions of federal dollars being allocated to rehabilitate foreclosed properties,” said Congressman Cardoza. “Merced County should never have been overlooked for these funds in the first place. I am pleased to have helped right this wrong as our communities remain at the heart of the foreclosure crisis. I am also appreciative that Secretary Donovan listened to my concerns and responded appropriately.”

The County and cities will have to apply for the funding but are expected to receive the following awards:

Merced County - $3,144,403
City of Merced - $2,621,166
City of Los Banos - $2,407,876
City of Atwater - $1,040,331

Additionally, Dos Palos, Gustine and Livingston are eligible to receive several hundred thousand dollars through a joint application with the county.

“As I continue to say, no one step or action will turn around our economy. However, this is one very significant step in doing so. More important, Merced is finally getting its fair share.”