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$19.6 million to buy and rehab foreclosed and abandoned properties and provide down payment assistance for first-time homebuyers
Governor Donald L. Carcieri joined US Senator Jack Reed at a press conference today to announce the details for the State’s Neighborhood Stabilization Program. Administered through a partnership between the Rhode Island Office of Housing and Community Development and Rhode Island Housing, the Neighborhood Stabilization Program provides $19.6 million to acquire and redevelop foreclosed and abandoned properties, down payments for first-time homebuyers, and funding for demolition of blighted properties. The $19.6 million funding is provided under the federal Housing and Economic Recovery Act of 2008.
“The foreclosure crisis has impacted many communities in Rhode Island,” said Governor Donald L. Carcieri. “We felt it earlier and harder than the rest of the nation. This funding will put money to work in communities with the highest need to stabilize the neighborhoods, provide quality, affordable housing for Rhode Islanders, and support construction jobs.” “This summer when we finally overcame opposition to reform our nation’s housing finance system, I fought hard to include federal funds to cope with the foreclosure crisis. This $19.6 million in federal funds will help the state and local communities acquire and redevelop foreclosed properties,” said Reed, who authored several key provisions of the Housing and Economic Recovery Act of 2008. “Vacant, foreclosed homes can invite crime and drag down neighboring property values. This is a smart investment in strengthening our communities, putting more people to work in construction jobs, and bolstering the local economy. Today’s announcement is the first step, but in the weeks ahead, there needs to be more support for these kinds of initiatives from Washington."
“The Neighborhood Stabilization Program will revitalize neighborhoods threatened by blight, create jobs, and provide safe, healthy homes,” said Noreen Shawcross, Executive Director of the Rhode Island Office of Housing and Community Development.
Governor Donald L. Carcieri today asked Rhode Island’s top business and labor leaders to head a review committee of the Rhode Island Economic Development Corporation. In addition, Speaker William J. Murphy and Senate President-elect Teresa Paiva Weed have agreed to each appoint a designee representing the House and Senate respectively.
The advisory panel will review the EDC’s mission, organizational structure, leadership, governance, and staffing and report back to the Governor in 90 - 120 days with recommendations on how to improve the EDC and its role in the state’s economic development. The EDC staff will work with the advisory panel to provide access to all necessary information.
The advisory panel will be chaired by Al Verrecchia, Chairman of the Board of Directors and former President and CEO of Hasbro. Advisory panel members include Ed Cooney, Vice President and Treasurer of Nortek and Chairman of the Greater Providence Chamber of Commerce; Paul Choquette, Chairman of Gilbane, Inc.; George Nee, Secretary-Treasurer of the Rhode Island AFL-CIO; and Stephen Lane, Co-founder and CEO of Item Group, as well as the appointed House and Senate designees.