PATERSON THROWS MONEY AT VACANT BUILDINGS

Sustainable Neighborhood Demonstration Program Unveiled in State of the State Address

Late last week, Governor David A. Paterson announced the availability of $2 million in funding to revitalize upstate communities through the new Sustainable Neighborhoods Demonstration Program. Local Governments, municipal housing authorities and not-for-profits can now apply for the funding through the State Division of Housing and Community Renewal (DHCR) and the New York State Housing Finance Agency (HFA) to spur the rehabilitation of vacant or blighted residential properties and redevelop vacant land across upstate. 

"This initiative will create new, affordable, high quality housing opportunities for families by rehabilitating vacant and abandoned buildings and making them available to renters and first-time homebuyers," Governor Paterson said. "Too many abandoned and neglected properties are eroding the quality of life in communities throughout upstate. The Sustainable Neighborhoods program will serve as a national model for turning these distressed properties into quality affordable housing, creating jobs and boosting the upstate economy." 

Targeting existing State resources to the Sustainable Neighborhoods Demonstration Program initiative is a starting point for addressing the vacant housing crisis across upstate New York. The vacant housing crisis inhibits future economic development, discourages homeownership and in-migration and perpetuates the perception that the region's urban areas are in a downward spiral. Without intervention, the surplus of infrastructure and properties will likely persist for years to come and vacancies will continue to spread outwards beyond the city limits, challenging efforts to attract private investment to rebuild upstate cities and the upstate economy. 

To address this issue, the Governor first announced the Sustainable Neighborhoods Demonstration Program in his State of the State address in January, and quickly engaged State agencies in identifying potential neighborhoods for targeting existing program resources. 

DHCR Acting Commissioner Brian Lawlor said: "Governor Paterson's Sustainable Neighborhoods initiative uses existing program resources in creative new ways to address distressed properties and the critical need for affordable housing in upstate New York. I want to commend the Governor - he gave his housing agencies clear policy direction and we are delighted to make good on one of his State of the State signature initiatives. DHCR is encouraging local community development organizations and local leaders to coordinate projects and establish goals for the development of each new sustainable neighborhood. With the start of construction season upon us, we are confident that this initiative will soon be making a difference in the economic health of communities and in the lives of families who need safe, decent and affordable housing." 

HFA Chairman Judd S. Levy said: "We look forward to working with the Governor and DHCR to ensure that the Sustainable Neighborhoods Demonstration Program is a success. Turning vacant and abandoned properties into affordable housing for owners and renters is one of HFA's highest priorities. Reclaiming these properties will improve people's lives, revitalize neighborhoods and stimulate our economy. We look forward to collaborating with our government and nonprofit partners to turn these communities around." 

A competitive request for proposals (RFP) for Sustainable Neighborhoods Demonstration Program funds is now available through DHCR and HFA. Local governments, municipal housing authorities and not-for-profit corporations may apply for two categories of funding. Approximately $500,000 is available for Sustainable Neighborhoods Planning Grants to assist in the development of neighborhood revitalization plans that will result in building-specific strategies to rehabilitate vacant and/or blighted residential properties or redevelopment of vacant lots within certain targeted neighborhoods. Approximately $1.5 million is available for Sustainable Neighborhoods Implementation Awards to fund costs associated with the rehabilitation of vacant and/or blighted residential properties, or redevelopment of vacant lots that have been identified in an existing neighborhood revitalization plan. 

The Request for Proposals and applications are available at www.nysdhcr.gov and www.nyhomes.org . 

Agencies involved in the Sustainable Neighborhoods program include DHCR, the Housing Finance Agency, the Empire State Development Corporation, the Department of Environmental Conservation, the Department of Agriculture and Markets, the Department of Transportation, the Office of Parks, Recreation and Historic Preservation, the Department of State, and the New York State Energy Research and Development Authority.