|John E. Hall|
January 14, 2010
HUD SECRETARY DONOVAN ANNOUNCES $22.5 MILLION IN RECOVERY ACT GRANTS TO STABLIZE NEIGHBORHOODS, REBUILD ECONOMIES IN THE DISTRICT OF COLUMBIA
Neighborhood stabilization grants to D.C. neighborhoods hard hit by the housing crisis
WASHINGTON - U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is awarding $22.5 million in Recovery Act funding to the Chicanos Por La Causa, Inc., D.C. Department of Housing and Community Development, the National Housing Trust Community Development Fund, and the Community Builders, Inc. under HUD's Neighborhood Stabilization Program (NSP). The NSP grants announced today are part of $2 billion awarded nationwide to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes while creating jobs.
Funded through the American Recovery and Reinvestment Act of 2009, this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to address the impact the housing crisis has
had on local communities, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars.
"Vacant homes have a debilitating effect on neighborhoods and often lead to reduced property values, blight, and neighborhood decay," said Donovan. "This additional $2 billion in Recovery Act funding will help stabilize hard hit communities by turning vacant homes from eyesores into community assets. The Neighborhood Stabilization program
is a key part of the Obama Administration's comprehensive approach to address the national housing and economic crisis."
The National Housing Trust Community Development Fund in a consortium agreement with the Institute for
Community Economics and National Housing Trust-Enterprise Preservation Corporation and with Telesis Corporation
as a for-profit partner has been awarded $10,632,066 in NSP2 funds to target one census tract in Washington, DC. This targeted census tract is in a historic area of Washington that has been negatively affected by foreclosures, vacancies, abandonment, and the withdrawal of public and private capital and credit. The Consortium has been working on stabilizing the targeted area for more than 2 years and the addition of NSP2 funding will allow further implementation of a stabilization investment and green redevelopment plan. The Consortium proposed to acquire and rehabilitate 225 foreclosed or abandoned properties and provide finance assistance in the form of a revolving loan
fund and soft second financing for foreclosed or abandoned properties for an additional 40 homeownership or rental housing units. All the NSP2 funded housing will serve households below 80 percent of the area median income with more than 25 percent of the funds going to households with less than 50 percent of area median income. The stabilization of this target area will attract and leverage additional private investment and create more than 400
well paying jobs. The Consortium will leverage $8,800,000 in other funds to help achieve stabilization.
The DC Department of Housing and Community Development has been awarded $9,550,562 in NSP2 funds. These funds will be used in three targeted neighborhoods across 19 census tracts. These areas are historically underserved communities struggling to overcome the long-term effects of disinvestment, vacancy, and abandonment. The communities have been disproportionally affected by foreclosures and vacancies within the city because of broad neighborhood division along socio-economic and racial lines. The NSP2 funds will help minimize the gap between
stable and unstable communities and provide stability in these low-income neighborhoods. The department will
target single family home development through the proposed acquisition and disposition of 96 vacant and foreclosed homes, rehabilitation of 63 foreclosed units, and down payment assistance for 150 homebuyers. For multifamily development, the Department proposed having a revolving loan fund for the acquisition of 100 units and
rehabilitation financing for 375 units. These activities will all benefit households whose income is at or below 120 percent of area median income, with 25 percent of the funds for households at or below 50 percent area median income. These funds will create neighborhood stabilization through the development of mixed-use, mixed-income communities with amenities for residents.
Community Builders, Inc. has been awarded $78,617,631 in NSP2 funds. These funds will be used in targeted areas across 15 states, the District of Columbia and 9 census tracts to address a crisis in multifamily housing where the location and proportion of rental housing relative to the single-family inventory is critical to the viability of the real estate market. Community Builders proposed to acquire and rehabilitate or redevelop multifamily properties that are foreclosed, blighted, or vacant. Their strategy will build on existing stabilization efforts and continue after the NSP2 program. Within an allotted 3 year time frame, Community Builders proposed the creation of a minimum of 1,300 units of affordable housing, with at least 50 percent for households whose income is at or below 50 percent of area
median income and the remain for households at or below 120 percent of area median income. Community Builders is taking a unique approach by using their NSP2 funds for the development of affordable multifamily housing to rent as apartments, townhomes, and residential complexes with families of mixed incomes. For instance in East Chicago, IN, Community Builder's will work with the local housing authority and a non-profit, Hispanic Housing Development Corporation, to develop 75 rental townhouses for families under 60 percent of area median income , with half
targeted to family's under 50 percent area median income and around 15 percent for public housing families.
Chicanos Por la Causa, Inc. in a consortium agreement with Affordable Homes of South Texas, Community Development Corporation of Brownsville, El Paso HOAP, Tierra del Sol Housing Development Corporation, YES
Housing, Inc., CHISPA, Inc., New Economics for Women, Colorado Rural Housing Development Corporation, Del Norte/Northeast Denver Housing Center, Mi Casa, Inc., Norris Square Civic Association, and The Resurrection Project has been awarded $137,107,133 in NSP2 funds. These funds will be used in targeted areas across 332 census tracts in 8 States and the District of Columbia to address foreclosure and abandonment in the housing market and to create affordable housing for Latino communities. The Consortium proposed to use the awarded funds to demolish 165 blighted properties, land bank 203 foreclosed homes, and produce 1,998 affordable housing units through the
purchase and rehabilitation of foreclosed or abandoned homes, financing mechanisms, and redevelopment of vacant
or abandoned properties. These activities will benefit households whose income is at or below 120 percent of area median income, with 25 percent of the funds for households at or below 50 percent of area median income. These funds, and the leveraging of $12,012,000 in other funds, will lead to neighborhood stabilization by improving the housing market through the creation of affordable housing in the targeted communities.
The Neighborhood Stabilization Program was created to confront the effects of the housing crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate vacant homes and convert them to affordable housing. Last year, HUD awarded nearly $4 billion in NSP formula funds to over 300 grantees nationwide to help state and local governments respond to the housing crisis and falling home values.
On August 26, 2009, HUD also awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of abandoned homes they purchase under the Neighborhood Stabilization Program. HUD's NSP technical assistance grants are helping NSP recipients to implement sound underwriting, management, and fiscal controls; measure outcomes in the use of public funds; build the capacity of public-private partnerships; develop strategies to serve low-income households; incorporate energy efficiency into NSP programs; provide support, and training on the operation of 'land banks'; and train NSP recipients on HUD program rules and financial management requirements.
The additional $2 billion in NSP grants being awarded today will build on the work being done now to help state and local governments and non-profit developers collaborate to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to middle-income homebuyers. Grantees can also create "land banks" to assemble, temporarily manage, and dispose of foreclosed homes.
The Neighborhood Stabilization Program will also help to prevent future foreclosures by requiring housing counseling
for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.
Secretary Donovan and HUD are committed to providing the highest level of transparency possible as Recovery Act funds are spent quickly and efficiently. It is crucial that the American people are fully aware of how their tax dollars are being spent and can hold their federal leaders accountable. Every dollar of Recovery Act funds HUD spends can
be reviewed and tracked at HUD's Recovery Act website. The full text of HUD's funding notices and tracking future performance of these grants is also available at HUD's Recovery Act website.