NSP Termination Act

Floor Speech

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Mr. CARSON of Indiana. Thank you, Ranking Member Frank.

As our Nation's economy moves forward, we must not forget about our neighborhoods, and we must continue to help those areas that are still struggling to come back. That is why I am appalled at the efforts to terminate the Neighborhood Stabilization Program.

In my own district of Indianapolis, the neighborhood of Mapleton Fall Creek has been revitalized with NSP funds. What were once eyesores and magnets for crime, they have been renovated, and they are now for resale. These improvements have encouraged low- and middle-income residents to settle into areas known for abandonment and blight. New businesses have opened, and an area once in decline is actually blossoming again. This was all possible because of NSP funding.

We must continue this program for the neighborhoods in Indianapolis and across this great Nation.

I would like to express my support for the Neighborhood Stabilization Program (NSP) and to oppose the majority's plans to terminate the program.

All three rounds of NSP are critical because they provide emergency assistance to states, local governments, and nonprofits to acquire and redevelop foreclosed, vacant, and abandoned properties. Many of these properties have become blights on the community and are driving down neighboring property values. The first two rounds of the NSP program impacted an estimated 80,000 foreclosed, abandoned, or vacant properties, and it is estimated that NSP3 will impact tens of thousands more. Terminating the program in the middle of the worst foreclosure crisis since the Great Depression would further harm neighborhoods and many struggling American families. This would most certainly slow the recovery of the housing market.

Specifically in the 7th district of Indiana, the district I represent, I would like to highlight the work of Mapleton Fall Creek Development Corporation which has used NSP funds effectively. On March 14, 2011, Mapleton Fall Creek Development Corporation reported they are halfway through their NSP work. They have completed renovations on 50 units of rental housing and 47 of them are rented. Many of these properties sat empty and boarded up for 5 years and 25 of them were foreclosure properties. They have also acquired 32 houses and 28 lots that will be renovated for new homes. The rebuilt homes will vary from low income apartments to market rate homes for purchase. Lastly, they have demolished 12 vacant and blighted structures, leveraged funds from local banks and other not for profits to increase cash flow and stretch their NSP dollars further, and provided work for four construction managers and numerous contractors.

Mr. Chair, in the 7th district of Indiana, nearly $3 million of NSP funds were used to obtain and rehab 32 residences as part of the 2012 Super Bowl Housing Legacy Project on Indianapolis' near eastside. NSP 3 funds will also be used to demolish blighted structures in key neighborhoods that have high foreclosure rates, including the old Winona Hospital and Keystone Towers--two enormous blighted structures that have been plagued with crime and environmental concerns for years.

I strongly urge the majority to permit the Neighborhood Stabilization Program to continue. As our nation's economy moves forward we must not forget about our neighborhoods and middle class families. We must help those families and communities that are still struggling to come back.

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