|HUD Reg. VI -10-6|
January 14, 2010
HUD ANNOUNCES $15 MILLION IN RECOVERY ACT NEIGHBORHOOD STABILIZATION GRANTS TO LITTLE ROCK AND NORTH LITTLE ROCK
LITTLE ROCK - U.S. Housing and Urban Development Secretary Shaun Donovan today announced that HUD is
awarding $15,046,706 in Recovery Act funding to Little Rock and North Little Rock under HUD's Neighborhood Stabilization Program (NSP). The competitive 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. Grantees, amounts and project summaries follow.
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 foreclosure 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 Neighborhood Stabilization Program was created to address the foreclosure crisis, create jobs, and grow local economies by providing communities with the resources to purchase and rehabilitate foreclosed 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 rising foreclosures and falling home values.
In addition, on August 26, 2009, HUD awarded $50 million in technical assistance grants to help grantees more effectively manage the inventory of foreclosed homes they purchase under the Neighborhood Stabilization Program.
The additional $2 billion in NSP grants being awarded today will build on the work already being done 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.
The City of Little Rock, in a consortium agreement with Black Community Developers and Habitat for Humanity, has been awarded $8,602,359 in NSP2 funds. These funds will be used in targeted areas across three census tracts suffering from unaffordable mortgages, depressed housing prices, high unemployment, and deteriorating housing
stock that creates an undesirable place to live. The Consortium will establish financing for the redevelopment of 17 foreclosed homes in the form of soft second loans, loan loss reserves, and share equity loans. They will return 270 homes to the housing stock by rehabilitating 215 foreclosed homes and building 55 new homes on demolished or vacant properties. The Consortium will create land banks as needed and demolish as many blighted homes as
possible with an allocated 7.1 percent of the awarded funds (approximately 16 percent of the housing in the area is blighted). These areas will be maintained for public use or redeveloped. All activities will benefit households at or below 120 percent of area median income, with 44.6 percent of the funds and 110 rehabilitated units directed at households at 50 percent or less of area median income. By focusing these activities and resources, along with $887,500 in other funds, in clusters of key areas, the Consortium will demonstrate what a livable neighborhood looks like, thereby generating confidence and raising neighborhood expectations.
The City of North Little Rock, in a consortium agreement with the City of Little Rock, the Housing Authority of
Little Rock, the Housing Authority of North Little Rock, Aregenta Community Development Corporation, Habitat for Humanity, and Black Community Builders, has been awarded $6,444,347 in NSP2 funds.
These funds will be used in targeted neighborhoods in one census tract where high vacancy rates and abandoned
and blighted residential properties are causing destabilization. The Consortium will provide financing in the form of grants and second loans, with flexible repayment conditions, for 55 homebuyers. It also will create 135 units of affordable housing through the redevelopment of vacant and demolished sites and the rehabilitation of foreclosed
and abandoned homes. 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. With these awarded funds, and the leveraging of $1,668,250 in other funds, the Consortium will influence long-term economic benefits in the targeted area including the attraction of private developers and the creating of jobs in construction.
The Consortium plans to enhance its NSP2 program by ensuring that all redeveloped or rehabilitated homes will be certified according to the requirements of LEED-H (Leadership and Energy in Environmental Design for Homes). This certification ensures that homes will use less energy, water, and natural resources, create less waste, and be more durable and comfortable for homeowners.