Ten Representatives from Ohio and Michigan, led by Representatives Steven LaTourette (R-OH) and Marcia Fudge (D-OH), introduced legislation to authorize $4 billion in federal demolition bonds, H.R. 4210, on March 19. The bill would provide states with funds to undertake significant residential and commercial structure demolition projects in urban areas.
In a press statement upon the bill’s introduction, Mr. LaTourette said, "The intention is to halt a tsunami of blight that is ruining once-stable neighborhoods one home and one street at a time by focusing on properties that are beyond repair."
Of the $4 billion, $2 billion would be allocated to qualified states in proportion to their numbers of non-seasonal vacant properties. To be “qualified,” states must meet two of four requirements:
- Be in the top 20 among states in percentage change of non-seasonal vacancies between 2000 and 2010.
- Rank in the top 25 among states in unemployment rate in last 12 months.
- Rank in top 25 among states in percentage of loans in foreclosure
- Rank in the top 20 among states in the lowest percentage change in population growth between 2000 and 2010.
The bill would also allow these qualified states to use all of their Neighborhood Stabilization Program (NSP) funds for demolition. Currently, NSP allows up to 10% of program funds to be used for demolition.
The other $2 billion would be equally divided among all states.
The bill was referred to the House Committees on Ways and Means and Financial Services.
View Mr. LaTourette’s press release: http://latourette.house.gov/news/reps-latourette-and-fudge-unveil-legisl...