Neighborhood Stabilization Program–Make Your Voice Heard!
Friday, November 21st, 2008So what’s this all about?
The Neighborhood Stabilization Program, (NSP) established as part of the Housing and Economic Recovery Act of 2008, is injecting over $3.9 Billion into states and communities dealing with the past and present rise in foreclosure rates. $52 Million (and another $5.5 Million for Charlotte) is making its way to North Carolina. Want to see more permanent supportive and transitional housing in your community? The state Neighborhood Stabilization Program draft plan is out and awaits your comment. This is your chance to support more affordable rental housing and supportive housing for people at the lowest income levels in your community. 25% percent of distributed funds have been targeted to those at 50% of area median income (AMI) and below.
Because this is special one time funding, it presents a unique opportunity to create new housing opportunities for currently homeless individuals. Homeowners are not the only casualty of the current foreclosure surge. Increasingly, those with the lowest incomes and fewest options are unable to find affordable housing in a crowded market. Please submit comment on this draft plan before December 1 so you can make a difference.
What are some suggested comments?
- The current funding guidelines state that the program should serve those up to 120% of AMI. We think that ceiling should be lowered to 80% AMI, to focus help among those with the most critical need. (An exception to this would be to keep the 120% ceiling in low-income neighborhoods.)
- Right now, using the money to “landbank”, or buy land for later development, is allowable only for the purposes of providing homeownership opportunities. We think it should be expanded to include rental housing.
- Lengthen periods of affordability for rental housing. Right now, depending on the amount of funding invested in rental projects, there are varying numbers of years that the property must remain affordable. We think no matter what amount of NSP funding a project receives, there should be a minimum of 50 years that the property remain affordable. This is in keeping with guidelines established by the recently passed National Housing Trust Fund.
Who accepts the comments?
Send all comments on the draft plan via email to Vickie Miller, CDBG Assistant Director by emailing vmiller@nccommerce.com–and make sure you comment by the December 1 deadline!