Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

$600 million in housing aid on the way for 5 more states

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Five more states will receive federal funding to help troubled homeowners avoid foreclosure, the Obama administration announced Monday.

Last month, President Obama unveiled the Hardest Hit Fund, which pumped $1.5 billion into state housing agencies in California, Arizona, Florida, Nevada and Michigan. These five were originally identified because they had been hardest hit by the housing bust, with prices declining more than 20%.

Now, an additional $600 million is being doled out to the five states that have the largest number of counties suffering unemployment rates above 12%: North Carolina, Ohio, Oregon, Rhode Island and South Carolina.

"The goal for our second set of awards was to identify states suffering from high shares of populations living in concentrated areas of economic distress," said Alan Krueger, Treasury assistant secretary.

Although these five states are receiving less funding than their predecessors, Krueger said the amounts are equal on a per-person basis.

Because Ohio has the largest proportion of its population living in high-unemployment counties, it will receive the largest share of the funds, totaling $172 million. North Carolina is on tap to receive $159 million; South Carolina will secure $138 million; Oregon is due to receive $88 million; and Rhode Island will get $43 million.

The program, which is funded with money from the TARP bank bailout, allows each of the states' agencies to propose foreclosure solutions that address local conditions. States that received funds during the first round are due to present proposals on April 16.

The Treasury suggests states offer assistance through innovative initiatives, including unemployment programs and mortgage modifications. As a result, some states are looking at a program in Pennsylvania that offers low-interest bridge loans to the unemployed so that they can pay their mortgages. To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed3.67%3.76%
15 yr fixed2.79%2.83%
5/1 ARM3.07%3.10%
30 yr refi3.67%3.76%
15 yr refi2.82%2.83%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,014.38 -12.67 -0.08%
Nasdaq 4,268.76 -14.99 -0.35%
S&P 500 1,852.21 -1.23 -0.07%
Treasuries 1.73 -0.01 -0.35%
Data as of 5:46pm ET
Company Price Change % Change
Bank of America Corp... 12.20 -0.07 -0.57%
Facebook Inc 99.54 -0.21 -0.21%
Pfizer Inc 29.10 0.54 1.89%
Ford Motor Co 11.35 -0.24 -2.07%
Microsoft Corp 49.28 -0.13 -0.26%
Data as of 4:01pm ET

Sections

Sports Authority faces looming deadline, possible bankruptcy filing after missing $20 million interest payment. More

President Obama's $4.15 trillion budget won't go anywhere this year with Republican lawmakers. But sometimes the proposals of outgoing presidents can influence future policy debates. Here are some of Obama's ideas from his last budget blueprint. More

Fitbit shares are at an all-time low despite a Super Bowl ad promoting its new Blaze smartwatch. Investors are worried about the intense competition in the wearables market ... and fear that Fitbit could be another GoPro. More

STEM3 Academy was started specifically for students with autism, ADHD and Asperger's Syndrome. Its STEM-based curriculum is breaking through barriers. More

Looking to buy a home while carrying student debt? Here's the difference between making a low down payment and putting 20% down. More