March 16, 2011
CARSON VOTES TO PROTECT NEIGHBORHOOD FUNDING
Republican legislation defunds important program to redevelop abandoned houses
WASHINGTON, D.C. - Congressman André Carson today voted against legislation that would end the Neighborhood Stabilization Program, which provides funding to help communities deal with large numbers of foreclosed, vacant and abandoned properties.
The Neighborhood Stabilization Program (NSP) provides critical assistance to states, local governments and nonprofits to acquire and redevelop properties so they do not further depress housing prices or lead to neighborhood blight. Funds from NSP were awarded in three rounds with the third round of funds still awaiting disbursement. Indianapolis has benefited from a total of $37 million that is being put to work demolishing abandoned houses and redeveloping properties in seven targeted neighborhoods across Indianapolis.
"We have so many neighborhoods across Indianapolis making great strides, but they still face significant hurdles in tackling foreclosed properties," said Congressman Carson. "Through the help of NSP funds, properties that were magnets for crime are now renovated and ready for resale or rent. These improvements have encouraged low- and middle-income residents to settle into areas that until recently were struggling.
"Along with making lasting investments in our neighborhoods, NSP funds have been an example of what we need in this tough economy-a program that puts people back to work."
The legislation is the third of four bills brought to a vote by House Republicans which kill foreclosure avoidance and mitigation programs. Efforts to dismantle these programs follow earlier Republican efforts to cut funding for government agencies which will implement provisions of the Wall Street Reform Act designed to reduce the risk of another financial crisis.
Examples of Some NSP Projects in Indianapolis
- Mapleton Fall Creek Development Corporation was able to leverage funds from local banks and other not for profits to increase cash flow and stretch their NSP dollars further in order to undertake the following projects:
- Renovate 50 units of rental housing
- Acquire 32 houses and 28 lots to renovate or build new homes
- Demolish 12 vacant and blighted structures
- Provide work for four construction managers and numerous contractors.
- Indy-east Asset Development are using NSP funds to revitalize Indianapolis' Near Eastside with many different housing options:
- Develop 24 new or rehabilitated units of housing for homeownership
- Develop 32 new or rehabilitated units of housing for rent
- Construct 33-unit senior apartment building
- Demolition and remediation of a vacant brownfield
- Rehabilitation of a commercial building
- Develop greenspace and urban farms
- Near North Development Corporation is combining NSP funds with a variety of grants to:
- Subsidize removal of 19 severely blighted structures
- Develop and sell 28 brand new homes
- Demolish 24 structures
- Develop 35 homes
- Riley Area Development Corporation is using NSP funds to:
- Complete 12 new construction units for youth aging out of foster care
- Complete five rehab units for affordable housing
- Rehab a property that serves as offices for the Connected By 25 organization and a center for youth aging out of foster care
- Construct 18 additional new construction units for youth aging out of foster care
- Rehab five units for affordable housing
- King Park Area Development Corporation is using NSP funds to:
- Develop 23 affordable housing units for lease or purchase
- Concord Community Development Corporation is utilizing NSP funds to:
- Construct 17 affordable rental housing units
- Demolish a blighted commercial structure
- NSP funds are scheduled to be used to demolish blighted structures including the old Winona Hospital and Keystone Towers.