September 16, 2010

City Uses $168 Million In Federal Funds To Rehabilitate Foreclosed Properties, Strengthen Neighborhoods

Mayor Daley Says Chicago Has Received More Neighborhood Stabilization Program Money Than Any Other Local Government
Mayor's Press Office    312.744.3334

View The YouTube Video

Mayor Richard M. Daley said today Chicago has received more funding through the federal Neighborhood Stabilization Program (NSP) -- $168 million -- than any other local government in the country and is using the money to acquire and rehabilitate foreclosed properties and turn them into affordable housing units. 

“We all know the impact foreclosures can have on our neighborhoods and we know that if we don’t continue to address this challenge, we face the prospect that entire blocks in many parts of Chicago may be at risk, threatening our City’s economic future,” Daley said in a news conference held at 6015 S. Indiana Av., a 46-unit building that is being redeveloped under the program.
NSP is administered by the U.S. Department of Housing and Urban Development and provides cities with funding to acquire and redevelop vacant, foreclosed properties.
Daley announced today that the City has reached its goal -- almost one month before the deadline -- of committing to projects all of the $55 million it received in round one of the Neighborhood Stabilization Program.
And he announced that in the third round of funding, Chicago has been awarded $15.9 million in NSP money. Chicago also received $98 million in round two.
The Mayor said the City’s decisions about which buildings to acquire are strategic and targeted to stabilize neighborhoods and make more affordable housing available.
So far, the City has:
  • Acquired 343 units in 85 properties. 
  • Committed funds for court-ordered demolitions of 72 unsafe buildings, and
  • Turned over 107 units in 27 properties to developers for rehabilitation
In addition, during the next two months the City expects to acquire almost 150 more units with funds from the second round of NSP.
Over the next three to five years, Chicago also expects to support up to 2,500 housing units by using the money received from the sale of NSP homes to new owners and from the repayment of construction loans by developers.
Daley thanked the City’s partners who have helped make the NSP so successful: Mercy Portfolio Services, the Local Initiatives Support Corporation, Community Investment Corporation, the Chicago Community Loan Fund and our developers and community organizations for making this program so successful.
And he thanked Reverend Richard Tolliver and St. Edmund’s Redevelopment Corporation, which has worked with the City through NSP and other programs to create and preserve more than 500 units of low-income affordable housing in Chicago neighborhoods.
 “We have an obligation to address the changing needs or our people and they continue to need a lot of help right now in the face of this epidemic of foreclosures,” the Mayor said.
“Through our efficient use of Neighborhood Stabilization funds, we are giving them that help,” he said.
The following community areas are included in the City’s Neighborhood Stabilization Program:
Albany Park, Auburn Gresham, Austin, Burnside, Chatham, Chicago Lawn, East Garfield Park, Englewood, Fuller Park, Grand Boulevard, Greater Grand Crossing, Hermosa, Humboldt Park, Logan Square, New City, North Lawndale, Oakland, Pullman, Riverdale, Roseland, South Chicago, South Deering, South Lawndale, South Shore, Washington Park, West Englewood, West Garfield Park  West Pullman and Woodlawn.
#          #          #