HUD Grantees Share Similar Approach
by James Brooks
The U.S. Department of Housing and Urban Development (HUD) awarded $2 billion in the second round of funding for the Neighborhood Stabilization Program (NSP-2) to 55 entities — states, localities, land banks and housing developers. Common to nearly all the recipients was a combination of three principles: a coalition of partners to implement programs; targeted efforts across a limited number of census tracts; and leveraging of other funding to support the federal program dollars.
Coalitions
Topping the list of coalitions is the Michigan State Housing Development Authority, which leads a group of 12 cities and eight land banks and will receive nearly $224 million. The funds will launch the New Michigan Urban Neighborhood Strategy, which integrates land planning, targeted demolition and rehabilitation and land assemblage to prepare neighborhoods for future development opportunities.
In another example, the consortium for the City of Newark, N.J,. draws together six local governments, nine housing and community development organizations and three for-profit developers who have agreed to work across 24 census tracts. This group proposed to acquire 203 foreclosed or abandoned properties that will be rehabilitated or redeveloped to create 654 units of affordable housing.
Targeted Spending
Throughout the foreclosure crisis some of the hardest decisions have been about where to spend the money. Are funds spread widely across the whole city or directed at specific areas where an infusion of cash may save not just a few homes but an entire neighborhood?
Under NSP-2, much of the funding will be targeted to limited areas, usually determined by census tract. Springfield, Ohio will use its $6 million allocation in just six census tracts. Tampa, Fla., will spend $38 million in 11 census tracts. Little Rock, Ark., received $8.6 million for use in three census tracts. Even cities as large as Los Angeles and Chicago are spending their funds across 37 and 36 census tracts, respectively.
Leveraged Funds
The level of leveraged funds is extraordinary. The City of Columbus, Ohio, and its partners, receiving $23 million, expect to leverage nearly 50 percent more — $11 million — for their efforts. The nine cities that are part of the Alameda County, Calif., consortium will receive $11 million from NSP-2 and will bring together another $10 million. Finally, although the federal funds to Toledo, Ohio, will be spread over 64 census tracts, the coalition partners expect to pair the $10 million NSP-2 money with $3.2 million from local sources.
Details: For information about NLC’s housing initiatives, contact James Brooks in NLC’s Center for Research and Innovation at (202) 626-3163 or by e-mail at brooks@nlc.org.
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