City Seeks Comments on its Neighborhood Stabilization Program

Communications Director

Kristin Farley
(865) 215-2589

400 Main St., Room 691
Knoxville, TN 37902

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City Seeks Comments on its Neighborhood Stabilization Program

Posted: 07/06/2009
The City of Knoxville's Community Development Department and Consortium Partners are developing an application for funding through the Neighborhood Stabilization Program Round 2 (NSP2). Funds have been provided for NSP2 through the Department of Housing and Urban Development (HUD) under the American Reinvestment and Recovery Act of 2009 (ARRA) to assist in the redevelopment of abandoned and foreclosed homes.

The application for funding is competitive and due to HUD on July 17, 2009. The draft plan is posted on the City's website at or a copy of the draft plan can be obtained by calling the Community Development Department office at 865-215-2120 during regular business hours.

Public comments on the plan are encouraged. Citizens may submit their comments to Becky Wade by email at or by postal mail to City of Knoxville, Community Development Department, P.O. Box 1631, Knoxville, TN 37901. All comments must be received no later than July 13, 2009. Approval of the plan is scheduled for Knoxville City Council on Tuesday, July 14.

The map that is included in the draft plan shows the target census tracts which will be the focus of the NSP2 funds if awarded. Those census tracts include: 5, 6, 8, 12, 13, 14, 15, 17, 19, 20, 21, 24, 28, 29, 30, 32, 34, and 39. Census tracts were qualified by HUD based on data indicating the foreclosure risk and vacancy risk for each tract.

The NSP2 application requests funds in the amount of $13,800,000 to be spent in the target geography for the following eligible uses:

Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell, rent or redevelop such properties, $8,800,000.

Establish and operate land banks for homes and residential properties - $2,500,000.

Redevelop demolished or vacant properties as housing - $1,500,000.

Administration of the grant - $1,000,000.

Twenty five percent of the total funding must be used to develop abandoned or foreclosed residential properties to house families with incomes at or below 50% of area median income.

Consortium partners include: City of Knoxville Community Development Department, Knoxville's Community Development Corporation (KCDC), Knoxville-Knox County Community Action Committee (CAC), Knoxville Habitat for Humanity (KHFH), Knox Housing Partnership (KHP), Knoxville Area Urban League (KAUL), Helen Ross McNabb Center (HRM), East Tennessee Housing Development Corporation (ETHDC), Neighborhood Housing Inc. (NHI) and Southeastern Housing Foundation (SHF).