$4.8 million awarded to stabilize Washington neighborhoods with high foreclosure rates

Grants will redevelop abandoned homes and vacant lots in King, Pierce, Snohomish, Spokane counties

Olympia, WA – June 17, 2011 – (RealEstateRama) — The Washington State Department of Commerce today announced that King, Pierce, Snohomish and Spokane Counties will receive a total of more than $4.8 million in grants to help purchase and redevelop foreclosed and abandoned homes, putting them back into productive use.

These federal funds were awarded to the Washington State Department of Commerce by the U.S. Department of Housing and Urban Development (HUD) in March under the Neighborhood Stabilization Program 3, aimed at stabilizing communities hit hard by foreclosure.

“Revitalizing neighborhoods hard-hit by housing foreclosures helps our state’s economic recovery,” said Karen Larkin, Department of Commerce Assistant Director for Local Government and Infrastructure. “While helping to support the economic base of struggling neighborhoods, these funds will also benefit low-income families in need of affordable housing.”

To distribute these federal funds, Commerce conducted a competitive process, soliciting grant proposals for projects in the areas of greatest need around the state. Twelve proposals were received, requesting a total of $12.7 million. The following four projects were approved for funding, for a total of $4,835,500:

Recipient Grant Award Project
City of Federal Way $1,693,000 Westway Neighborhood Housing Project: Will acquire, rehabilitate, and sell 14 foreclosed and vacant properties. Five units will be sold to low-income households.
City of Lakewood $640,000 Tillicum Low-Income Housing Project: Will acquire, rehabilitate, and sell 11 foreclosed and vacant properties.  All 11 units will be sold to low-income households.
Snohomish County $1,102,500 Park Place Townhome Rentals Project: Will acquire 14 newly constructed, vacant, and bank-owned homes. All 14 units will be rented to low-income households.
City of Spokane $1,400,000 East Sprague Rentals Project: Will build 37 new affordable rental housing units on a vacant lot in a neighborhood heavily impacted by foreclosures. All units will be rented to low income households.

For more information on the Neighborhood Stabilization Program 3, go to http://www.commerce.wa.gov/site/1360/default.aspx.

About Commerce

Commerce is the lead state agency charged with enhancing and promoting sustainable community and economic vitality in Washington. For more information, visit www.commerce.wa.gov. For information on locating or expanding a business in Washington, visit www.choosewashington.com.

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Local Contacts:

City of Federal Way, Bryant Enge, Administrative Services Director, 253.835.2510

City of Lakewood, Jeff Gumm, Program/Grants Coordinator, 253.983.7773

Snohomish County, Dean Weitenhagen, Supervisor of Office of Housing, Homelessness, and Community Development, 425.388.3267

City of Spokane, Paul Trautman, Housing Program Administrator, 509.625.6325

Corina Grigoras, Neighborhood Stabilization Program 3 Manager, 360.725.3092
Penny Thomas, Commerce Communications, 360.725.2805

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