New York City Fails to Secure Funds for Tackling Foreclosure Blight

For the second time New York City failed to secure funds for tackling foreclosure blight. The Department of Community and Economic Development of the state dampened all hopes of the city to avail of millions to fight the menace. New York City was applying for funds coming through the Neighborhood Stabilization Program that had been initiated by the Bush government.
$3.92 billion had been allocated by the federal government to all the states numbering 50 and to 254 local governments struggling with foreclosures. Included were York County, Pittsburgh as well as Philadelphia.

York City had made an application to DCED asking for nearly $2.9 million from the $260 million allotted to Pennsylvania but last month the application was refused said the Deputy Director of the Housing Bureau of the city, Brian Davidson.
The city could have again asked for funds from the second round of money coming from the federal kitty of $1.93 billion from the economic stimulus package that had been sanctioned in the previous year. But the New York state said that the second request too does not merit consideration. Davidson explained, “We just didn’t have the high rate of foreclosures in the city that some other areas did, which hurt our application.”

The numbers may be less but the city continues to be burdened with its curse of vacant properties. According to York City Department of Fir/Rescue services there were more than 600 abandoned units. The figures however are confusing as many are rental homes.

Davidson said, “We were all pretty shocked not to receive this money. At this point, it’s a scramble. We’re trying to get our hands on any stimulus or recovery money that’s out there. If we can partner with the county, if that’s an option, we may do that.”

HUD informed Mayor John Brenner in a correspondence of September 2008 that the city had been given $2 million for this programme. But HUD later stated that the letter was a mistake as the money had been diverted to York County.

The city now asked the county to release a portion of the funds but the officials of the county reiterated that York City was not eligible. The money would be used for the boroughs of Hanover, Dallastown, West York, Red Lion and Yoe.

HUD has raised a dispute about the reading of the regulations for funding and said that the city should be given its share from the county funds.

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