Neighborhood Stabilization Program 2

Rock Island Economic Growth Corporation (GROWTH) is pleased to announce that the U.S. Housing and Urban Development (HUD) awarded $18,530,708 in funding from the Neighborhood Stabilization Program (NSP2) to assist the communities of Rock Island, Moline, and Sterling.

GROWTH created the Northwestern Illinois Coalition for this NSP program. GROWTH will serve as the Lead Applicant to administer the overall program and will work in concert with four Consortium Partners including: City of Moline, City of Rock Island, City of Sterling, and Illinois Housing Development Authority (IHDA).

NSP2 is funded through the American Recovery and Reinvestment Act, and is designed to spur economic development in hard-hit communities and create jobs. GROWTH is one of nearly 60 applicants nationwide to receive an award. Total awards amount to $2 billion.

Funding will be used in qualifying census tracts that have high vacancy and / or foreclosure rates as determined by HUD including: Census Tracts 226, 227, 233, 235, 236, 237 in the city of Rock Island. Census Tracts 217, 219, 222, and 223 in the city of Moline. Census Tracts 010, 011, and 012 in Sterling.

At this time, GROWTH does not know what exact projects have been funded. Specific areas, or census tracts, in each community would be eligible for program funding. $35,295,425 in NSP2 funding was requested. Approximately 251 units of housing will be impacted. Activities and uses of funds have been developed through an analysis of existing community plans, feedback from community members, and an examination of housing needs in the communities of Sterling, Rock Island, and Moline, Illinois.

To download the NSP2 application click on the links below:

The Lead Applicant and its consortium members will use funds for the general activities listed below.

NSP Request

Purchase-Rehabilitation: to purchase and rehabilitate 57 homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such properties. $7,540,000
Redevelop Vacant Property: for redevelopment of demolished or vacant properties as housing with 145 units to be created for new rental and owner-occupied housing units serving households earning up to 120% of the area median income. $20,675,000
Demolition: for demolition of blighted 49 structures $751,750
Financing Mechanisms: to establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties. $3,120,000
General Administration: to support implementation, monitoring, and compliance. $3,208,675

Activities to be conducted by each partners includes the following:

USE OF FUNDS BY PARTNER
Partner	Geography	Activity	# Units	NSP Request
Rock Island Economic Growth	Census tracts 226, 227, 233, 235, 236, 237 in the city of Rock Island	Purchase-Rehabilitation of foreclosed or abandoned properties for Homeownership. Properties will be purchased, rehabilitated, and resold.	15	$2,250,000
		Redevelop Vacant Property 11 Units Infill New Construction	11	$2,525,000
		Establish Financing Mechanisms Provision of soft second mortgages	26	$1,040,000
		Redevelop Vacant & Demolished Property Two new rental units to be developed at 1612-1614 2nd Avenue	2	$100,000
		Redevelop Vacant & Demolished Property Seventy-two rental units to be developed at former Illinois Oil Site at 321-327 24th Street	72	$14,000,000
City of Rock Island		Demolition of Blighted Structures Demolition of blighted properties for purposes of future redevelopment.	25	$403,750
City of Moline	Census Tracts 217, 219, 222, 223 in the city of Moline	Purchase-Rehabilitation of foreclosed or abandoned properties for Homeownership. Properties will be purchased, rehabilitated, and resold.	25	$3,080,000
		Demolition of Blighted Structures Demolition of blighted properties for purposes of future redevelopment.	20	$240,000
		Redevelopment Vacant Property 10 units for Homeownership	10	$2,050,000
		Establish Financing Mechanisms Provision of soft second mortgages	35	$1,400,000
City of Sterling	Census Tracts 010, 011, 012 in the City of Sterling	Purchase-Rehabilitation of foreclosed or abandoned properties for Homeownership. Properties will be purchased, rehabilitated, and resold.	17	$2,210,000
		Demolition of Blighted Structures Demolition of blighted properties for purposes of future redevelopment.	4	$108,000
		Establish Financing Mechanisms Provision of soft second mortgages	17	$680,000
		Redevelop Vacant Property Approximately 50 rental units to be developed at the former Northwestern Steel & Wire building	50	$2,000,000
		General Administration		$3,208,675
Grand Total			251	$35,295,425