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CLEVELAND - congresswoman Marcia Fudge noted that more than 40 percent of the homes on E. 69th Street off Union Avenue were either vacant or foreclosed. Currently, only 10 percent of funds from the federal Neighborhood Stabilization Program (NSP) can be used for demolition. The bill would change that by allowing greater flexibility in how NSP funds can be used. It would also provide
Federal Neighborhood Stabilization Program
It would also provide more than $40 million in Qualified Urban Demolition Bonds to every state, with additional funding flowing to states like Ohio that are considered "hardest hit" by the foreclosure crisis. Any unused allocation would be redistributed by the Secretary of the Treasury after two years "qualified" states (including Ohio).
As the crisis hit Cleveland, the foreclosure rate skyrocketed and banks failed to step in and takresponsibility for abandoned structures. City officials estimate 8,000 to 9,000 homes are in need of demolition, at a cost of anywhere from $7,000 to $10,000 per home. It's why Congresswoman Marcia Fudge coauthored a bipartisan demolition bill, The Restore our Neighborhoods Act of 2012, along with Congressman Steve LaTourette (OH-14). The bill establishes a bond program to finance demolitions to eliminate blight and curb crime as well as aid the recovery of property value for homeowners, especially those who don't want to leave their neighborhoods. The bonds will encourage public-private partnerships and provide interest free dollars fordemolition that can be used for commercial and residential demolition. We can revitalize our neighborhoods and it can start now. Fudge and LaTourette stressed that the legislation would be budget neutral, as there are at least two possible offsets under consideration for the $4 billion cost.City and county leaders said the legislation is not only about removing blight, but also clearing the way for future redevelopment of neighborhoods. "We want to see a city that's thriving and bustling," said Gus Frangos, President of the Cuyahoga Land Bank. "This is about creating a new vision for our neighborhoods."Although more than 6,000 vacant homes in Cleveland have been demolished in the past five to seven years, there are still more than 12,000 condemned or blighted homes throughout the city. Throughout Cuyahoga County, there are estimated to be 25,000 to 30,000 blighted or condemned properties in need of demolition."Thiis a $250-million problem," said Frangos. "That number is much greater than we can handle, no matter how strategic we are with our resources."