Castor Highlights Positive Effects of Neighborhood Stabilization
Washington,
Mar 16, 2011 -
In response to a Republican-led proposal to terminate the Neighborhood Stabilization Program, Congresswoman Kathy Castor highlighted today on the House floor the positive effects the initiative has had on neighborhoods throughout the Tampa Bay area.
“The Neighborhood Stabilization Program has given us tools to create vital housing in the midst of a horrendous crisis, and it has created jobs,” Castor said. “In our community, we were particularly hard hit by the subprime mortgage and foreclosure crisis, and a collapse in employment that began in 2007. Property values have plummeted.
“Through Neighborhood Stabilization, we targeted hard-hit neighborhoods to stop the bleeding, protect property values and turn some of the worst abandoned and foreclosed homes that were causing blight into rehabilitated properties. Congress should be doing more to create jobs and tackle the housing crisis, not less.”
The Republican proposal, considered on the House floor today, would terminate the third round of the Neighborhood Stabilization Program, which provides money to communities that have been hit by a high number of foreclosures to help them cope with the blight that comes from empty houses.
The Tampa Bay area has benefited greatly from the first and second rounds of the Neighborhood Stabilization initiative, and is in line to benefit from the third round as well.
In the first round of funding, Hillsborough County received $19.1 million and the city of Tampa received more than $13 million. The money was used to buy ugly, dilapidated, abandoned and foreclosed homes, which are being rehabilitated and put up for sale or removed – moves that should increase nearby property values, put families back in homes, and address larger community challenges such as new housing for homeless female veterans in East Tampa at Tampa Crossroads.
In the second round of funding, new life is being breathed into Central Park Village, the downtown Tampa mixed-use development initiative. Tampa was awarded $38 million to transform Central Park Village into Encore. This initiative is expected to create more than 4,000 jobs during construction and 1,000 permanent jobs once Encore is completed. Castor plans to participate next week in the groundbreaking of Ella, an apartment complex for seniors at Encore. Pinellas and Pasco counties also were awarded tens of millions of dollars through the second round of funding awards.
The Tampa Bay area is in line to receive more than $24 million in round three awards – which could be threatened by the Republican-proposed legislation.
Hillsborough County, for example, is expecting to receive approximately $8 million to rehabilitate foreclosed, abandoned properties. Hillsborough County’s Affordable Housing Department already is expecting funding cuts from the state, so another loss of money could lead to job cuts.
“Hillsborough County has told me that losing additional housing money could lead to a loss of work for their housing partners – the contractors, architects, engineers, surveyors, and all the other Floridians and businesses who benefit from this initiatives” Castor said. “It is important to fight to keep these jobs.”
Castor spoke in opposition to the bill and offered two amendments to the legislation that would require the U.S. Government Accountability Office to conduct a study of the economic impact of the Neighborhood Stabilization Program has had on communities across the country. The study would be conducted within 90 days of the bill’s enactment. Castor noted however, that “no study is necessary to appreciate the positive impact Neighborhood Stabilization is having in our community.”
