NEIGHBORHOOD STABILIZATION PROGRAM 2

Jul 2nd, 2009

NEIGHBORHOOD STABILIZATION PROGRAM 2

PROGRAM SUMMARY

Prepared by: The City of Mobile for Public Comment

On May 4, 2009, the Department of Housing and Urban Development (HUD) issued a $1.93 billion Notice of Fund Availability (NOFA) for the Neighborhood Stabilization Program 2 (NSP2). The purpose of the Neighborhood Stabilization Program 2 is to stabilize communities that have suffered from foreclosures and abandoned properties.

Over the past decade, the City of Mobile has experienced a period of disinvestment within certain census tracts. The foreclosure crisis has served to compound the problem. The ripple effect from the foreclosure crisis is an increase in vacancies and abandoned properties. According to HUD data, several Mobile census tracts have a high foreclosure risk score and a high vacancy risk score.

The City of Mobile intends to address foreclosures and vacancies by applying for funding to HUD for a $25-30 million Neighborhood Stabilization Program 2 (NSP 2) grant. NSP2 is also designed to increase the supply of affordable housing for low, moderate and middle income levels. Neighborhood stabilization will be achieved by this influx of affordable housing and the alleviation of vacant properties.

The City of Mobile proposes to carry out NSP2 within neighborhoods in the following census tracts: 4.01, 5, 9.03, 10.01, 10.02, 12, 13.02, 14, 15.01, 15.02, 39.01, 39.02. These target census tracts were determined based on meeting the HUD threshold requirements and in conjunction with the New Plan for Mobile.

To achieve neighborhood stabilization, the City of Mobile proposes to use NSP2 funds to:

• Purchase residential properties that have been abandoned or foreclosed upon;
• Rehabilitate residential properties that have been abandoned or foreclosed upon;
• Land banking for the purposes of either rehabilitation or redevelopment;
• Financing mechanisms for the purposes of making homeownership available;
• Acquire blighted, abandoned or foreclosed properties;
• Redevelop/construct residential units on demolished or vacant properties.

All households benefiting from the program will be at or below 120% of AMI. A minimum of 25% percent of the funds will target households at or below 50% of AMI.

The City of Mobile will be partnering with local non-profits and statewide agencies to achieve these goals. The City of Mobile intends to utilize sustainable design and planning principles to promote long-term neighborhood stability and revitalization. The City intends to emphasize rehabilitation and preservation over demolition and new construction, whenever possible. Ten percent of the funds granted will be used for program administration.

The City of Mobile encourages citizens to submit written comments regarding the proposed Neighborhood Stabilization Program 2. Written comments must be submitted by July 15, 2009, to:

Keri Coumanis
coumanis@cityofmobile.org
P.O. BOX 1827
Mobile, AL 36633-1827