WASHINGTON, D.C. - U.S. Sen. Sherrod Brown (D-OH) today announced new funds to help rebuild communities devastated by the housing and economic crisis. Ohio communities will receive more than $51 million in funds through the Neighborhood Stabilization Program (NSP), which provides communities with the resources to revitalize, rebuild, or demolish blighted and abandoned properties and purchase and rehabilitate vacant homes.
"These funds are about helping Main Street recover from the economic crisis," Brown said. "By rebuilding neighborhoods devastated by foreclosures and the subprime loan crisis, we will improve surrounding property values, create new jobs, and foster long-term economic growth. By putting vacant properties and lots to good use and targeting funds to the hardest-hit communities, we can rebuild our neighborhoods and strengthen our communities."
Brown fought for the creation of the NSP program, which was enacted in 2008 to help communities renovate homes or tear down blighted properties. It is estimated that each dollar in NSP funding has more than twice the economic impact; due to a multiplier effect generated through new jobs and rehabilitated housing. The first two waves of funding were announced in Sept. 2008 and Jan. 2009 to communities based on need through a formula grant and competitive application process, respectively. Like those earlier rounds of NSP grants, today's targeted funds will be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.
Funds were awarded through a formula targeting the most distressed neighborhoods - based on the number and percentage of home foreclosures, the number and percentage of homes financed by a subprime mortgage related loan, and the number and percentage of homes in delinquency. HUD uses a model that takes into account causes of foreclosures and delinquencies, which include housing price declines from peak levels, increases in unemployment, and rate of high cost and highly leveraged loans. HUD also considers vacancy problems in neighborhoods with severe foreclosure related problems.
Brown is a leading proponent of providing assistance to communities affected by the housing crisis and population loss. He fought for the creation of the Neighborhood Stabilization Program in the Housing and Economic Recovery Act of 2008 and the continuation of the program in the American Recovery and Reinvestment Act (ARRA) of 2009. In Sep. 2008, Brown announced that Ohio communities would receive more than $258 million in NSP funds authorized by the housing bill. In Sep. 2009, Brown wrote to Secretary Donovan in support of Ohio applicants to the second wave of funding through the NSP program.
Brown also introduced the Community Regeneration, Sustainability and Innovation Act of 2009 with Sen. Charles Schumer (D-NY) and Reps. Tim Ryan (D-OH) and Brian Higgins (D-NY). This legislation would create a new, competitive grant program within the U.S. Department of Housing and Urban Development (HUD) targeted toward cities and metropolitan areas experiencing large-scale property vacancy and abandonment due to long-term employment and population losses.
The following Ohio communities received funding through the third wave of NSP funding:
Butler County/Hamilton City $1,327,123
Clark County/Springfield City $1,105,306
Cuyahoga County $2,551,533
Hamilton County $1,469,242
Lorain County/Lorain city $1,619,474
Montgomery County $1,145,712
Richland County/Mansfield City $1,022,278
East Cleveland $1,068,142
Trumbull county/ $1,143,889
OH Nonentitlement $11,795,818
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