The City of Knoxville is requesting public comments on its draft Neighborhood Stabilization Program - a $4.5 million initiative aimed at stabilizing the housing market and neighborhoods in Knoxville, increasing home ownership opportunities for low and moderate income families, and reducing chronic homelessness in our community.

Details in the rest of the press release after the jump...

The city’s Community Development Department prepared the NSP and the funding for it is provided by the federal government as part of the Housing and Economic Recovery Act of 2008, which Congress passed last summer.

The NSP plan must be submitted to the U.S. Department of Housing and Urban Development (HUD) by December 1 for approval. City Council will consider approval of the plan at its November 18 council meeting.

"The city has been allocated the money but HUD has to approve our plan for the use of the funds," said Madeline Rogero, community development director. "Our goal is to build upon our existing neighborhood stabilization strategies in collaboration with nonprofit partners."

The city’s draft plan can be reviewed at www.cityofknoxville.org.deveopment and at the city’s Community Development Department located on the fifth floor of the City County Building at 400 Main Street in downtown Knoxville.

Comments on the plan will be received by the city from November 11-26, 2008. Please address any comments to Becky Wade at bwade@cityofknoxville.org or to Becky Wade, City of Knoxville Community Development Department, P.O. Box 1631, Knoxville, TN, 37901.

All comments will be included in the city’s submission to HUD.

The law governing the Neighborhood Stabilization program is contained in Title III of the Housing and Economic Recovery Act of 2008, which was passed by Congress on July 30, 2008. Nationally, $3.92 billion in emergency assistance was appropriated for the redevelopment of abandoned and foreclosed homes and residential properties. HUD determined the allocation formula for these funds.

The City of Knoxville was allocated $2,735,980 by HUD and the State of Tennessee is proposing to award $1,828,481 from its allocation to the city.

Eligible uses for the NSP funds include:

(A) Establishing financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties

(B) Purchase and rehabilitation of homes that have been abandoned or foreclosed on in order to redevelop them for sale or rent

(C) Establishment of land banks of foreclosed homes

(D) Demolish blighted structures

(E) Redevelopment of demolished or vacant properties

The city’s plan focuses on NSP-eligible uses B, D, and E.

Specifically the city will use:

• $1.14 million to purchase and rehabilitate homes that have been foreclosed on or abandoned in low to moderate income areas in order to sell or rent.

• $300,000 to demolish blighted structures.

• $2.6 million to redevelop vacant properties or buildings for very-low income rental housing to assist low-income elderly citizens and help develop permanent supportive housing for the chronically homeless in support of the Mayors’ Ten Year Plan to End Chronic Homelessness.

• $60,000 for sewer and utility extensions to support targeted housing development.

Wade, the city’s community development administrator, encourages the public to read and respond to the plan. She anticipates that HUD will approve the plan by early next year.

rocketsquirrel's picture

I laughed out loud and spit

I laughed out loud and spit my coffee out when I read the title of this. Name a plan to drop $2.6 million on homeless shelters and call it "neighborhood stabilization."

How very...Bushian. PATRIOT Act removes constitutional rights of every American. Knoxville's "Neighborhood Stabilization Program" dumps the homeless in our neighborhoods.

Good job, Knoxville.

Nobody's picture

Heckuva

Didn't you mean to say: heckuva job, city?

There's some merit to some of the items but I want to echo Matt Edens :

It's the schools, stupid!

Shore up the schools and the rest will follow.

Tamara Shepherd's picture

How?

Shore up the schools and the rest will follow.

Shore them up how? Do you mean new facilities?

Nobody's picture

shoring up

I don't mean physically shoring up. More like putting effort into programs and discipline and such.

An example: North Chattanooga used to be unremarkable if not downright dumpy in spots. But now Normal Park is a top rated school and it has become a desireable place to live.

R. Neal's picture

The consolidation of

The consolidation of Knox/City schools destroyed South Knoxville.

Tamara Shepherd's picture

How so?

I moved back to Knoxville (childless) in 1987, the year the two school systems were consolidated, so I have no personal recollection of events that followed.

What do you think happened?

(You know, of course, that outside the city limits, people have the perception that it is the "city" schools that are the ball-and-chain to the consolidated school system. From a financial standpoint, this is quite true.)

WGPittman's picture

Hello Randy, The Minvilla

Hello Randy,
The Minvilla project is far out of control and not just from a costing standpoint but from a timeline and best use standpoint. Soon our County Commission will vote on whether or not to give even more of our tax dollars to VMC for Minvilla. In my opinion:

1. This resolution is not needed to prevent the further deterioration of Minvilla which has occurred during VMC's ownership. It is quite possible that the City's "demolition by neglect" ordinance could be
enacted.

2. Commissioner Broyles is correct that private development wasn't an easy option prior to VMC's acquisition; however, several things have occurred including the Broadway/Central corridor plan, the emergence
of "Downtown North", the historic designation of Minvilla, announcement of St. John's redevelopment of the NE corner of Broadway & Fifth, the condemnation and subsequent razing of the porn store as
the result of TDOT's expanded right-of-way and most importantly, the Ten Year Plan wasn't very far along. We have been told all along that the TYP will vastly improve the area adjacent to Minvilla. All of the
aforementioned will make the likelihood of private development much
more likely in just a few short years. This would also give our
government the opportunity to possibly engage others, such as UT's
School of Architecture or a private group willing to collaborate on
restoring Minvilla maybe for married student housing or such. By the
way, many married students would qualify as "low income" possibly
allowing other grant opportunities.

3. I disagree with Commissioner Broyles that chopping up 13 original
row homes is the "best use" of this property; the best use would be
complete restoration which may be a possibility in a few short years
given #1 and #2 above.

4. I also believe that it is wrong to spend ~$200+ / ft2 when other
options are available at a fraction of the cost. Why wouldn't we want
to house more people with the available funds? I have sent multiple
options to the TYP which are much larger but still less than $45/ft2.

5. As to any sunk costs incurred by VMC, I would like to request that
Commissioner Broyles request receipts of payments by VMC and post
those to the listserv. I like VMC's work but we should verify their
expenditures particularly given past promises not kept by VMC. Regardless though, every sound business person knows that sunk costs should not be consider for new expenditures for an incomplete project.

6. Diversifying the housing first for the recently homeless takes them
away from the demons which possibly haunt them as well as those who
might want to prey upon them and their weaknesses. It also puts them
closer to service level jobs and diversifies those that they are
around…thereby giving them better role models.

7. Finally, I find it very hard to ask our taxpayers to be part of a
$7,000,000 investment which has a projected appraised value of only
~$2,000,000.

Supporting Minvilla is not in the best interest of the property, the adjacent neighborhoods, the City nor the constituency supposedly being served.

As many of our County Commissioners read this blog, can any of them explain where I might be incorrect in the 7 points above or why in the world someone of sound mind would support this affront to common sense?
If not our County Commissioners, can any else explain how this project makes sense?

Why in the world do we want to help fewer people and delay the help?

Kindest regards,
Bill Pittman

Rational Voice's picture

Simple answers Bill...... 1)

Simple answers Bill......
1) The TYP plan needs a success and they have spent WAY to much time and money already to back away from Minvilla.
2) VMC is emotionally attached to the project per the CEO. This attachment has destroyed all good judgement. They will accept no alternative(s).
3) When you can pump seemingly unlimited amounts of public money into a project, return on investment really does not matter. (See Hank Pualson)

While your points are spot-on,this project will continue; not for the alturistic motive of housing the homeless, but to satisfy the egos of the TYP and VMC. If it was about the homeless, other housing could have already been built and many homeless persons could be warm at this very moment.

Up Goose Creek's picture

Bailout

So this is the rebate/bribe that persuaded me (as in the collective me, i.e. US congress) to sign on to the bailout bill.

It works out to about $25 for each Knoxville resident. It's like I got $25 for agreeing to "loan" the financial industry $2300.

This can be put to good use or bad but my point is that it is a pitifully small crumb out of the 800 billion bailout bill. Think what a prosperous place Knoxville could be if we spent that 400 million (our share of the bailout) locally.

____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."

Up Goose Creek's picture

Built?

Bill's point is you wouldn't even have to build the units. Pick up some older apartment blocks at a bargain price, replace the worn carpet with durable floors and start housing the homeless ASAP.

How many units do you need to support an on site case manager?* That's the key ingredient IMHO.

*I'm worried about the answer to that question. I overheard a conversation at a thrift store where a customer said he no longer had a case manager from Helen Ross Mcnabb because Bredesen wasn't giving them enough money.

____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."

edens's picture

Pick up some older apartment

Pick up some older apartment blocks at a bargain price, replace the worn carpet with durable floors and start housing the homeless ASAP.

Not much of a development fee, though.

Btw, what's happening with all the suddenly vacant land TDOT created around 5th and Broad?

The plan link doesn't work, btw. Try:

(link...)

Up Goose Creek's picture

Development fees

Aah, yes. Good explanation.

____________________________________
"Whoever corrects a mocker invites insult; whoever rebukes a wicked man incurs abuse."

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