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Governor Rendell Says Families in Lehigh Valley Will Benefit from $7 Million Towards Down Payment Help; Affordable Housing; New Jobs

Posted on: Wednesday, 10 June 2009, 13:28 CDT

STEELTON, Pa., June 10 /PRNewswire-USNewswire/ -- Foreclosed or abandoned properties in Easton and areas within Lehigh and Northampton counties will be turned into 92 units of affordable housing with the award of more than $7 million in federal economic recovery funds, Governor Edward G. Rendell said today.

The new investment is part of a statewide announcement totaling more than $380 million that the Governor made today at a former school that is being converted into apartments in Steelton, Dauphin County. He said the statewide projects will provide jobs for some 3,000 workers, help at least 1,000 families with new home down payment assistance, and find affordable housing for 5,000 families.

"This is great news for families who have been hit hard by the foreclosure crisis in Pennsylvania, as the investments we are announcing today will help provide affordable housing for tens of thousands of Pennsylvanians," said Governor Rendell. "This is clear evidence that President Obama's stimulus bill and Congress' efforts to address the impact of this housing emergency are making a real difference in Pennsylvania.

"It's also a great day for families who need help coming up with a down payment for a new home. This creative, new program represents the spirit of partnership and innovation the President challenged us to employ when he signed the stimulus bill."

Governor Rendell said the Keystone First Program, an innovative down payment assistance program from the Pennsylvania Housing Finance Agency, will provide up to $6,000 in down payment help to at least 1,000 first time homebuyers.

"It's much harder to get a mortgage today than it was a year ago," the Governor said. "Most banks are looking for 20 percent down, or even more. The result is stable families looking for their first home can't come up with money up front to purchase a home. That changes with the stimulus-funded First Time Homebuyer Tax Rebate program."

Winn Development, a Boston-based national affordable-housing development company, will be working to help convert the Felton Building in Steelton to apartments. It will be the company's 10th project in Pennsylvania.

"Winn Development commends the commonwealth and PHFA for being among the first states to implement the stimulus program in this way," said Cheryl Stulpin, a vice president with the company. "What they are doing is going to have a big impact on the people and communities of the commonwealth."

Governor Rendell said the funding for the 99 projects that will make affordable housing more prevalent in the state comes from the Neighborhood Stabilization and Low Income Housing Tax programs.

Neighborhood Stabilization will provide $57 million to help rehabilitate properties that were subject to foreclosure as a result of subprime mortgage lending practices. NSP funding -- authorized by the federal Housing and Economic Recovery Act of 2008 and administered by the Pennsylvania Department of Community and Economic Development -- will assist 650 families through 28 projects undertaken by local governments across Pennsylvania. The funds will allow local governments and their partners to acquire, rehabilitate and resell foreclosed properties, and to redevelop vacant and blighted sites.

The Low Income Housing Tax Credit program will provide $320 million in stimulus funding to help put more than 3,580 families in affordable rental housing units. The funding will be made available by the Pennsylvania Housing Finance Agency, which will allow more than 3,580 families to move into affordable rental housing units.

"With all of this money, people in Easton, Williamsport, Lebanon, Uniontown, Erie, and elsewhere will soon have safe, affordable places to raise families, get back on their feet and, most importantly, someplace to call home," Governor Rendell said.

For more information on the Pennsylvania Housing Finance Agency, visit www.phfa.org.

For information on the Neighborhood Stabilization Program and other programs administered by DCED, visit www.NewPA.com or call 1-866-466-3972.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his newsletter, visit www.governor.state.pa.us.

EDITOR'S NOTE: The following projects have been approved (some of the PHFA funding is subject to final board approval Thursday).

Lehigh County

Pennsylvania Housing Finance Agency funding

• Greystone Apartments will receive $1,233,286 for the development of 24 units.

Lehigh/Northampton counties

Neighborhood Stabilization Program

• Lehigh County will receive $2.217,437 to develop ten units in the target areas of South Bethlehem, Fountain Hill, Catasauqua, Easton (West Ward) and Wilson Borough, which is in Lehigh and Northampton counties.

Northampton County

Neighborhood Stabilization Program

• The City of Easton will receive $500,000 to use on properties on Ferry Street in the West Ward neighborhood. Proposed NSP activities include the acquisition, rehabilitation and sale of two foreclosed or abandoned properties.

Pennsylvania Housing Finance Agency funding

• Delaware Terrace will receive $3,592,296 for the development of 56 units.

CONTACT: Chuck Ardo 717-783-1116 Luke Webber (DCED) 717-783-1132

SOURCE Pennsylvania Office of the Governor

Source: PR Newswire

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