The Recovery Act allocated $4 billion in rehabilitation money for foreclosed homes, but with only months left on the funding less than half of the money has been spent to date.  As of mid-March 38% of the Neighborhood Stabilization Program funds had been obligated.  All funds must be committed by September or the funds will be lost to the communities that have received grants.

Some communities have used the funds to buy up and renovate foreclosed homes to resell to low income families.  Some municipalities have used the funds to tear down abandoned eye-sores.  Others are purchasing and renovating apartment buildings for low income housing.

In some communities officials complain that they have been unable to compete with private investors to get a hold of foreclosed properties.  Communities in Florida have particularly been stymied and have spent only 25% of the $91 million awarded within the state through mid-March.

The latest wave of funding released in January went to only 56 communities where there is a track record for supporting large-scale community foreclosure abatement programs.