A consortium including Healthy Neighborhoods, the city's Department of Housing and Community Development, Saint Ambrose Housing Aid Center, Druid Heights Community Development Corporation and Chesapeake Habitat for Humanity as well as the for-profit partnership with Telesis Baltimore Corporation, has been awarded $26,092,880 in NSP2 funds.
The group will use these funds to address stagnant and declining housing markets across targeted areas in 12 census tracts. Addressing the blighted properties in these targeted areas will stem decline and build value in the city's real estate market. The consortium will acquire, rehabilitate and resell or rent more than 350 vacant or foreclosed properties and will also provide financing mechanisms in the form of gap financing, second mortgages and closing cost assistance for 981 units.
A portion of the funds budgeted for acquisition-rehab activities will be used to support a "homestead" model to stabilize neighborhoods by attracting young urban pioneers. The hope is that these activities will attract new homeownership in the neighborhoods, strengthen the real estate market and support active residential involvement. Neighborhood stabilization will be further maximized by the leveraged commitment of $7,429,472 in other funds.
"The award of these funds reaffirms the strength of our neighborhoods and Baltimore's history of effective partnerships with neighborhoods, lenders, non profits and the city government," says Mark Sissman, President of Healthy Neighborhoods, Inc.
Made possible through the American Recovery and Reinvestment Act (ARRA), this round of NSP grants is being awarded competitively to applicants who developed the most innovative ideas to rebuild local communities by purchasing vacant, foreclosed properties and putting them back into productive use, while demonstrating that they have the capacity to be responsible stewards of taxpayer dollars. There were 482 applicants, requesting over $15 billion in support. These two agencies were the only recipients of funding in the state of Maryland.
"This is wonderful news for Baltimore City and its neighborhoods," says Mayor Sheila Dixon. "I want to thank all those individuals inside and out of City government who collaborated, breaking down silos, to produce two visionary and highly competitive applications."
U.S. Housing and Urban Development (HUD) also awarded another $5,289,216 to Chicanos Por La Causa Inc. to support efforts by Mi Casa Inc. in Johnston Square in Neighborhood Stabilization Program II funds.
"Mi Casa is very excited to receive this funding which serves as a testament to the partnerships established with the Baltimore City Housing Department and Chicanos Por La Causa. The NSP2 funds will allow us to develop a significant number of vacant houses for low and moderate income households and support the ongoing redevelopment of the Johnston Square community," said Fernando Lemos, Founding Executive Director, Mi Casa Inc.
The federal government appropriated $2 billion dollars in NSP2 funds on an emergency basis to mitigate the impacts of foreclosures and abandonment on communities around the country. The proposed neighborhoods in Baltimore where work will be focused are: Belair-Edison, Better Waverly, Coldstream Homestead Montebello, Reservoir Hill, Patterson Park/McElderry Park, Barclay/Old Goucher, Johnston Square and Ednor Gardens.
"It is extraordinary that two NSP2 applications from Baltimore received awards. We have wonderful neighborhoods that were turning around and poised for continued long term investment before the foreclosure crisis," said Housing Commissioner Paul T. Graziano. "This support will ensure that those investments will not be in vain."
The award also requires housing counseling for families receiving homebuyer assistance funds through NSP. In addition, it will protect homebuyers by requiring grantees to ensure that new homebuyers under this program obtain a mortgage from a lender who agrees to comply with sound lending practices.
Source: Baltimore City Department of Housing and Community Development
Writer: Walaika Haskins