The U.S. Department of Housing and Urban Development allocated $7.3 million for Kansas City, Mo., as part of the Neighborhood Stabilization Program.
As a result of the Department of Housing and Urban Development's Economic Recovery Act, the City could receive $7.3 million to help abate blight resulting from foreclosed and abandoned houses. By abating these conditions, affordable housing will be developed for those most in need and values of neighboring homes will be less likely to be adversely affected.
Nature of the program
The municipalities that receive this money will develop their own programs and funding priorities. It is required that they use at least 25 percent of the funds for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that house those whose incomes do not exceed 50% of the area's median income. All activities funded by the Neighborhood Stabilization Program must benefit low- and moderate-income people whose income does not exceed 120 percent of area median income.
Money from the Neighborhood Stabilization Program may be used for activities that include, but are not limited to:
- Establishing financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
- Purchasing and rehabilitating homes and residential properties abandoned or foreclosed;
- Establishing land banks for foreclosed homes;
- Demolishing blighted structures;
- Redeveloping demolished or vacant properties.
Proposed plan for the City of Kansas City, Mo.
The City submitted this application to the Department of Housing and Urban Development on Nov. 26. The application included a summary of public comments that were received during the public comment period.
Funding from the State of Missouri
The State of Missouri received an allocation of $42 million, and like the City, submitted an application to the Department of Housing and Urban Development to propose a plan for the use of the funds within the state. The funds also are to be directed to the areas of the greatest need. The City was invited to submit a proposal to receive a portion of those funds. The City submitted a request for $9 million, but the state allocated only $1.1 million in the state application. See the state application here.
An analysis of the allocations recommended by the state concluded that the plan does not comply with the requirement that the funds be directed to the areas of the greatest need. See the presentation that was made before the City Council's Housing Committee on Dec. 3.
City officials are contacting the Department of Housing and Urban Development and elected officials (federal and state) to protest the allocation and to request that the City receive an allocation that is more appropriate considering the number of areas in need located within the city.
More information about the Neighborhood Stabilization Program can be found by clicking on the following links: