Boston Mayor Thomas M. Menino today announced the availability of more than $4 million in Neighborhood Stabilization Program (NSP) funds for the acquisition and rehabilitation of foreclosed and abandoned properties by developers.

Mayor Menino said the funds, to be distributed by the city’s Department of Neighborhood Development (DND) Neighborhood Housing Development division, are designed to assist developers with the cost of rehabilitating vacant REO properties for three specific target uses: owner-occupied homes, rental properties for low and moderate-income renters, or supportive housing for homeless families.

In addition, the Boston Housing Authority (BHA), in conjunction with DND, has made available up to 100 Project-Based Section 8 Vouchers over a two-year period for homeless or formerly homeless households for NSP development projects that meet funding requirements.

Last month, Menino announced that Boston’s foreclosure efforts would benefit from upwards of $8 million in combined federal and state resources made possible by the Housing and Economic Recovery Act of 2008, of which the new development funds are a result. These targeted funds, he said today, are designed to create new homeownership and rental housing throughout the city.

 "We’re making development funds available to support continued acquisition and rehab of foreclosed homes by local developers so that these derelict properties can be returned to productive use," said Menino. "We want to support our existing partners in the non-profit and for-profit communities – and encourage new ones to work with us – to help restore the fabric of our neighborhoods and further stabilize home values. These funds will also help to create much-needed jobs in the construction industry."