Nashville - Bill Dirl - (615) 515-8510
Knoxville - Mark Brezina - (865) 474-8205
Memphis - John Gemmill - (901) 544-3403
January 14, 2010
HUD SECRETARY DONOVAN ANNOUNCES OVER $30.4 MILLION IN RECOVERY ACT GRANTS TO STABLIZE NEIGHBORHOODS, REBUILD ECONOMIES IN TENNESSEE
Neighborhood stabilization grants to Nashvillians hard hit by the housing crisis
NASHVILLE - U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is
awarding $30,470,000 in Recovery Act funding to the Nashville-Davidson County Metropolitan Development and Housing Agency 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 Metropolitan Development and Housing Agency, Nashville in consortium agreement with The Housing Fund,
Urban Housing Solutions, and Woodbine Community Organization has been awarded $30,470,000 in NSP2 funds.
These funds will be used in targeted areas across 17 census tracts with identified housing, credit, and employment needs. The Consortium plans to use its range of relevant experience to create economically and socially viable neighborhoods. Financing mechanisms in the form of shared equity loans will be available to assist low to middle income buyers for 100 foreclosed properties. The Consortium will acquire and rehabilitate 205 abandoned or
foreclosed properties and redevelop 140 demolished or vacant properties. This housing will be made available for households whose income is at or below 120 percent of area median income, with 25 percent of the funds directed
at households at or below 50 percent area median income. The Consortium's goal is to stabilize the housing market
by removing the negative effects of abandoned and foreclosed properties while creating mixed income neighborhoods with access to non-residential amenities and places of employment.
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.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov.