To tackle the second, “trend-enhancement” challenge, or strengthening growth potential, the Bank instituted its Growth Foundation Strengthening Facility (GFSF) in the form of preferential fund-provisioning to support financial institutions’ own initiatives in lending and investing in new growth areas.
Recognizing this, the Congress recently underscored the need for states and localities to undertake a comprehensive approach to stabilizing neighborhoods hard-hit by foreclosures through the enactment of the new Neighborhood Stabilization Program (NSP). The NSP permits targeting of federal funds to benefit families up to 120 percent of area median income in those areas experiencing rising foreclosures and falling home values.