Neighborhood Stabilization Program Funds Announced
$49.4 Million Will Be Used To Revitalize Neighborhoods Hard Hit By Foreclosure


TRENTON - Governor Jon S. Corzine today joined Elizabeth Mayor J. Christian Bollwage and Department of Community Affairs (DCA) Commissioner Joseph Doria in announcing the award of $49.4 million in Neighborhood Stabilization Program (NSP) funds to municipalities across New Jersey. 35 grants will be awarded to 22 municipalities and two counties.

"It is critical that we take action to mitigate the destabilizing affect foreclosures and vacant homes can have on our neighborhoods and that is why these Neighborhood Stabilization funds are so important," said Governor Corzine. "These funds will provide much needed assistance in improving the health and viability of our communities and position them for future growth. By keeping our communities strong, we are keeping New Jersey strong."

As a component of the Housing and Economic Recovery Act of 2008 (HERA), the NSP is specifically intended to stabilize neighborhoods experiencing the negative effects of the subprime mortgage crisis and the general economic downturn. These localities are identified as those hard hit by foreclosures and are statistically at high risk of continued market deterioration. Funds from the NSP can be used for property acquisition, demolition, rehabilitation and for the creation and operation of land banks, in any combination, to spur neighborhood recovery.

"Governor Corzine was at the forefront of recognizing and taking action against the current foreclosure crisis," said Commissioner Doria. "NSP funding is a key part of the Governor's initiative and will go a long way towards revitalizing communities hit hardest by the foreclosures."

The DCA selected recipients whose plans targeted neighborhoods with existing community planning infrastructure, relevant economic assistance and counseling programs. These areas include those that are either participating in the State's Neighborhood Preservation Program, have plans and private investment through the Neighborhood Revitalization Tax Credit, have ongoing Community Development Block Grant investment or have been a target for other state, county or local investment. Local availability of foreclosure prevention programs and other community-based assistance were also weighed in the selection process.

Under the terms of HERA, an NSP grantee has 18 months to encumber the funds. The 18-month clock began with HUD's execution of the Grant Agreement on March 9, 2009. Complete expenditure of all programmatic funds must be complete within a four-year period ending on March 9, 2013. President Obama has made clear that transparency and accountability are of the highest priority and DCA will closely monitor the ability and progression of municipalities and organizations to encumber and expend these funds. Should any municipality or organization fail to adhere to the strict spending and timing guidelines as outlined under HERA, the DCA will take the necessary steps to reclaim any already expended funds.

"Neighborhood Stabilization Program funds will allow us to continue working with community partners in stabilizing our housing market," said Mayor Bollwage. "All of our funded projects will promote employment growth, continue neighborhood revitalization, and enhance overall quality of life."

DCA published an RFP last December that was open to local governments, for-profit and non-profit developers and non-profit organizations. Applicants had to develop and propose a set of interventions that were both allowable under NSP regulations and appropriate to the local circumstance. DCA held information sessions over the last few months to provide information on NSP funding.

For further information on the NSP, please log on to http://www.nj.gov/dca/, or call 609-633-6283.

Attached, please find the complete list of municipalities and organizations awarded NSP funding.

Grantee

Municipality

County

Award

Interfaith Neighbors, Inc.

Asbury Park

Monmouth

$2,500,000

Buena Vista Township

Buena Vista

Atlantic

$826,908

Burlington City

Burlington City

Burlington

$1,672,675

RPM Development, LLC

Camden

Camden

$2,500,000

Parkside BCIP, Inc.

Camden

Camden

$350,000

Heart of Camden

Camden

Camden

$1,337,302

Beacon.Org, Inc.

Clementon

Camden

$622,716

HANDS

East Orange

Essex

$651,233

City of Elizabeth*

Elizabeth

Union

$750,000

City of Elizabeth*

Elizabeth

Union

$240,000

City of Elizabeth*

Elizabeth

Union

$447,139

City of Elizabeth*

Elizabeth

Union

$720,000

City of Elizabeth*

Elizabeth

Union

$500,000

City of Elizabeth*

Elizabeth

Union

$600,000

City of Elizabeth*

Elizabeth

Union

$349,317

City of Elizabeth*

Elizabeth

Union

$203,000

Allies, Inc.

Hamilton

Mercer

$625,000

Brand New Day, Inc.

Irvington

Essex

$2,000,000

Episcopal Community Development, Inc.

Irvington

Essex

$1,750,000

Jersey City

Jersey City

Hudson

$1,700,000

Episcopal Community Development, Inc.

Newark

Essex

$1,950,000

Newark PHA

Newark

Essex

$2,500,000

Orange City Township

Orange

Essex

$1,500,000

Passaic City West

Passaic

Passaic

$2,437,775

Paterson Habitat for Humanity

Paterson

Passaic

$1,923,750

Perth Amboy

Perth Amboy

Middlesex

$1,700,000

Faith, Bricks & Mortar, Inc.

Plainfield

Union

$2,500,000

Pleasantville Housing Authority

Pleasantville

Atlantic

$1,773,000

Domus Corporation

Rahway

Union

$170,000

Roselle Borough

Roselle

Union

$2,500,000

Trenton City

Trenton

Mercer

$2,500,000

Willingboro Township

Willingboro

Burlington

$2,000,000

Woodbine Borough

Woodbine

Cape May

$689,657

Cumberland County Empowerment Zone

Cumberland

$2,500,000

Gloucester County

Gloucester

$2,500,000

Total

$49,489,422

*Represents different & distinct sections of Elizabeth


###