When the government gives a city millions of dollars, some thought has to go into how to spend it correctly. This is exactly what Henderson, NV is going through as housing officials are trying to figure out the logistics of a federal program that will provide the city nearly $4 million to assist qualified families and individuals the ability to purchase foreclosed homes.

The government has been quick to talk about the stimulus packages but has not really thought through all of the red tape which is leaving a lot of cities to try and figure out the process and reporting on the fly.  The Neighborhood Stabilization Program, which is where the money is coming to help Henderson, was developed to provide cities and towns nationwide capital to assist home-buyers with down payments, closing costs, readjustments of current mortgages and renovation projects.

Even though the money has already been earmarked for the city, it’s still working with the Department of Housing and Urban Development (HUD), which manages the program, to gain clarification on all of the details. One of the requirements that is already being dealt with is the eight-hour homeowner’s seminar that potential participants are required to attend.

The Neighborhood Services Department, which will administer the program in Henderson, was fully aware of this requirement and decided to start the seminars immediately so when the funds are released, they can move much more quickly.

Some public officials have been vocal that the money for this program should be going to help families in the midst of foreclosure, not helping families get into already foreclosed homes. Other have argued that the more immediate danger for the city as a whole is if the current inventory of foreclosed homes stays vacant and starts to bring down the values of homes around them.

For more information on Henderson foreclosures, click here.