The City of Knoxville is requesting public comments on its draft Neighborhood Stabilization Program - a $4.5 million initiative aimed at stabilizing the housing market and neighborhoods in Knoxville, increasing home ownership opportunities for low and moderate income families, and reducing chronic homelessness in our community.
The city's Community Development Department prepared the NSP and the funding for it is provided by the federal government as part of the Housing and Economic Recovery Act of 2008, which Congress passed last summer.
The NSP plan must be submitted to the U.S. Department of Housing and Urban Development (HUD) by December 1 for approval. City Council will consider approval of the plan at its November 18 council meeting.
"The city has been allocated the money but HUD has to approve our plan for the use of the funds," said Madeline Rogero, community development director. "Our goal is to build upon our existing neighborhood stabilization strategies in collaboration with nonprofit partners."
The city's draft plan can be reviewed at the city's Community Development Department located on the fifth floor of the City County Building at 400 Main Street in downtown Knoxville.
Comments on the plan will be received by the city from November 11-26, 2008. Please address any comments to Becky Wade at
[email protected] or to Becky Wade, City of Knoxville Community Development Department, P.O. Box 1631, Knoxville, TN, 37901.
All comments will be included in the city's submission to HUD.
The law governing the Neighborhood Stabilization program is contained in Title III of the Housing and Economic Recovery Act of 2008, which was passed by Congress on July 30, 2008. Nationally, $3.92 billion in emergency assistance was appropriated for the redevelopment of abandoned and foreclosed homes and residential properties. HUD determined the allocation formula for these funds.
The City of Knoxville was allocated $2,735,980 by HUD and the State of Tennessee is proposing to award $1,828,481 from its allocation to the city.
Eligible uses for the NSP funds include:
(A) Establishing financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties
(B) Purchase and rehabilitation of homes that have been abandoned or foreclosed on in order to redevelop them for sale or rent
(C) Establishment of land banks of foreclosed homes
(D) Demolish blighted structures
(E) Redevelopment of demolished or vacant properties
The city's plan focuses on NSP-eligible uses B, D, and E.
Specifically the city will use:
$1.14 million to purchase and rehabilitate homes that have been foreclosed on or abandoned in low to moderate income areas in order to sell or rent.
$300,000 to demolish blighted structures.
$2.6 million to redevelop vacant properties or buildings for very-low income rental housing to assist low-income elderly citizens and help develop permanent supportive housing for the chronically homeless in support of the Mayors' Ten Year Plan to End Chronic Homelessness.
$60,000 for sewer and utility extensions to support targeted housing development.
Wade, the city's community development administrator, encourages the public to read and respond to the plan. She anticipates that HUD will approve the plan by early next year.