Notice of Application for NSP2 Funds—Pensacola, Florida
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Application for Neighborhood Stabilization Program 2 funds – American Reinvestment & Recovery Act of 2009
Applicant: Habitat for Humanity International
Web Address: WWW.HABITAT.ORG
Web Address for Additional Information: http://www.pensacolahabitat.org
Statement of intent
Habitat for Humanity International intends to make an application for Neighborhood Stabilization Program 2 funds to the U.S. Department of Housing and Urban Development. Awarded NSP2 funds will be used in activities that will rapidly arrest the decline of targeted neighborhood(s) that have been negatively affected by abandoned, foreclosed, and vacant properties. HFHI’s application will be national in scope, and will utilize the services and capacity of Pensacola Habitat for Humanity to complete NSP2 activities within this community.
All NSP2 funds will be used to benefit individuals whose income does not exceed 80% of Area Median Income. At least 25% of NSP2 funds will be used for purchase and redevelopment of abandoned and foreclosed-upon homes and residential properties to house individuals and families whose incomes do not exceed 50 % of area median income.
Amount of funds
NSP2 funds will be awarded through a national competition in which eligible applicants will compete for up to $1.93 billion. HFHI will seek funds nationally, of which $24,150,000 is targeted for use within the target geography described below.
Census tracts: 4.00, 15.00, 16.00, 18.00, 19.00, 20.00, 21.00, 27.02, 108.05 & 108.07.
Habitat’s proposed work in Pensacola targets eight contiguous tracks which constitute the western urban core of Pensacola, an area with high percentage of minorities and low to moderate income levels. In South Santa Rosa County, an area with a large income disparity, Habitat will target two adjacent tracts to serve the low-income population in the area. The NSP2 activities are targeted in low-income areas that have a high proclivity of subprime mortgages. The area also suffers from an unemployment rate of more than 9.2% in Escambia Co. and 8.6% in Santa Rosa County.
Following the major storms Hurricanes Ivan in (2004) and Dennis (2005) and some smaller more recent storms, owner-occupied units in the targeted tracts utilized FEMA dollars to help with post-storm repairs and weatherization; however, disrepair of the remaining housing stock worsened resulting in a large number of blighted and abandoned property. All targeted areas have been impacted by a high rate of abandoned homes and lots, which have become hosts for drug use and other criminal activity. Coupled with the increased crime rates, blighted structures have rendered these neighborhoods undesirable further depressing property value. Foreclosure and abandonment have caused families to move frequently, which detracts from stable neighborhoods. NSP2 funds will be instrumental in helping Habitat to demolish severely damaged properties and rebuild new houses for sale to low income families.
Use of funds
HFHI proposes to utilize the capacity and services of Pensacola Habitat for Humanity to:
- purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon in order to sell or redevelop such homes and properties (45 units);
- demolish blighted structures (195 units); and
- redevelop demolished or vacant properties as affordable housing in the identified census tracts (195 units).
High subprime mortgage rates, high unemployment, and major storms have all contributed to a large number of blighted and abandoned properties in the Pensacola target areas. Habitat will use NSP 2 funds to purchase and demolish 195 dilapidated properties damaged by storms and build 195 new homes on the lots. New homes will be sold to low income families to increase the affordable housing stock. Additionally, Habitat will purchase, rehabilitate and sell 45 properties to low-income families. Habitat will target homes in cluster-sites to increase the strength of social networks and shared neighborhood pride.
Target areas are designated Community Redevelopment Areas by Escambia County, FL. Habitat has been working in the target areas for several years and is coordinating with local government to stabilize the neighborhoods. Since 2007, Habitat has built 132 new homes after demolition and rehabilitated 40. NSP 2 funds will be critical in revitalizing the proposed target areas.
Please note that the opportunity for public comment has closed.