NEIGHBORHOOD STABILIZATION PROGRAM FUNDS ANNOUNCED

$49.4 Million Will Be Used To Revitalize Neighborhoods Hard Hit By Foreclosure

ELIZABETH – 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

Here is 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