Areas City has Made Eligible for HUD Funds

Areas Eligible to Receive HUD Funds

The areas of greatest need lay in neighborhoods in the middle section of the city, south of 56th St. and north of Hanna Ave.

Mayor Greg Ballard and Congressman André Carson joined today to announce which areas of Indianapolis are eligible to receive HUD funds awarded to the city through the Neighborhood Stabilization Program (NSP).

The announcement marked the beginning of a public comment period as well as the next step in determining how $29 million in federal funds will be allocated to help alleviate the effects of home foreclosures and abandoned housing.

"Indianapolis is not immune to the growing national foreclosure and abandoned housing problem," said Mayor Ballard. "These funds are coming to our city at a time when we need them the most, and will be used where they can have the greatest impact."

“Abandoned homes and vacant properties blemish our neighborhoods and frequently serve as epicenters for illegal activity that induce high crime rates and make our streets less safe. By using these federal dollars to convert abandoned homes into affordable rental units, we are making a noteworthy investment in our community and safeguarding Indianapolis residents from the perils associated with vacant structures,” said Congressman Carson.

A team of community stakeholders has determined 11 areas that meet the NSP guidelines. The determination was made using HUD and Indianapolis Metropolitan Police Department GIS data to layer several measures over low, moderate, and middle-income target areas. These measures included foreclosure risk, vacancy rates, and density of foreclosures.

The areas of greatest need lay in neighborhoods in the middle section of the city, south of 56th St. and north of Hanna Ave.

The HUD NSP is designed to allow local governments to acquire and redevelop foreclosed properties that could turn into blighted areas. Communities receiving the funds are required to use 25 percent of the funds to house individuals or families whose incomes do not exceed 50 percent of the area’s median income. Activities funded by the NSP must benefit low and moderate income persons whose incomes do not exceed 120 percent of the area’s median income.

The funding can be used to purchase and rehabilitate abandoned and foreclosed homes to be sold or rented, to demolish blighted structures, or to counsel those who would benefit from using NSP funds.

There are 15 days to receive public comment on this plan. It will be submitted to HUD on December 1, 2008.

Those wishing to comment may send an email to JFults@indygov.org or write to:

NSP Comment
Department of Metropolitan Development
200 East Washington St.
Suite 2042
Indianapolis, Indiana 46204

Beginning December 1, 2008, a committee comprising members from business, nonprofit and government entities will meet to develop a comprehensive allocation plan by January 31, 2009. From that point, the city will have 18 months to spend the funds.