Neighborhood Stabilization Program
Notice of Public Comment Period for the City of Aurora Substantial Amendment to the 2008 Annual Action Plan of the 2008-2010 Consolidation Plan November 12 – November 26, 2008
The City of Aurora proposes to amend the above Action Plan and Consolidated Plan for the purpose of fulfilling the application requirements to receive Neighborhood Stabilization Program (NSP) funds from the U.S. Department of Housing and Urban Development (HUD) authorized under Title III of the Housing and Economic Recovery Act of 2008 (HERA).
HERA provides that these funds shall generally be treated as Community Development Block Grant (CDBG) funds. Making proper application to HUD by December 1, 2008, will result in the City of Aurora receiving an allocation of $3,083,568 to be used for the redevelopment of abandoned and foreclosed homes and residential properties.
The City of Aurora also anticipates receiving program income from undertaking NSP activities, in an amount yet to be determined, which will be used for additional NSP activities as allowed under HERA. The City of Aurora may also enter into intergovernmental or subrecipient agreements with the State of Illinois, also receiving NSP funds, if such collaboration would enhance the efforts of the City of Aurora with its own areas of greatest need.
The City of Aurora has initially identified the areas of greatest need based on the data received from HUD. The Substantial Amendment defines the areas of greatest need as follows:
- Areas with the greatest percentage of home foreclosures
- Areas with the highest percentage of homes financed by subprime mortgage related loans, and
- Areas identified as likely to face a significant rise in the rate of home foreclosures
The NSP Program identifies five eligible uses of funding, which include:
- Establishment of financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties
- Purchase and rehabilitation of abandoned and foreclosed homes and residential properties
- Establishment of land banks for home that have been foreclosed upon
- Demolition of lighted structures, and
- Redevelopment of demolished or vacant properties
City of Aurora’s Substantial Amendment identifies specific program activities that it may carry out and the agencies that it may partner with in carrying out these activities during the next five-year period. Twenty-five (25%) percent of the City of Aurora NSP allocation will be appropriated for housing individuals or families whose incomes do not exceed 50% of area median income.
Please be advised that effective November 12, 2008 the City’s Substantial Amendment will be available for review and public comments at the following locations: City of Aurora-Neighborhood Redevelopment, 51 E. Galena Blvd, Aurora, IL; Library-Main, 1 E. Benton, Aurora, IL; Library-Eola, 555 S. Eola Rd, Aurora, IL; Library-West, 233 S. Constitution Dr, Aurora, IL; and on the City of Aurora website.
Comments will be received by the City of Aurora Division of Neighborhood Redevelopment until November 26, 2008 at 51 E. Galena Blvd, Aurora IL, telephone: (630) 264-3060; fax: (630) 264-3070; e-mail: dnr@aurora-il.org.