$600M as Housing Aid to Five More U.S. States

September 27, 2010
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U.S. to give $600M in housing aid to 5 states

The Obama administration revealed that $600 million in financial support for five more states with high unemployment rate that have been thumped by the housing bust.

Ohio got the largest share of funding, at $172 million, followed by North Carolina at $159 million and South Carolina at $138 million. Oregon and Rhode Island are due to receive $88 million and $43 million respectively.

The money will be given to state housing finance agencies. The Treasury Department provided board criteria that should meet the designed mortgage assistance programs.

The assistant Treasury secretary, Herbert Allison, said “The purpose of this is to foster innovation in dealing with what is a highly localized problem around the country,” and added “we want to learn from the innovations.”

In the previous month, the Obama administration stated that it would give $1.5 billion to state housing agencies in Arizona, California, Florida, Michigan and Nevada that have some of the highest foreclosure rates in the nation. The Obama administration aimed North Carolina, Ohio, Oregon, South Carolina and Rhode Island because they have the largest share of residents living in counties with unemployment rates above 12 percent.

Other states, such as Alabama, Illinois and Mississippi, actually have higher statewide unemployment rates than Oregon or Ohio, but did not meet the government’s criteria.