The Department of Housing and Urban Development issued specific instructions on how Evanston is to use its $18 million share of the Neighborhood Stabilization Program 2 grant this week, city officials said.
Evanston, one of only 56 cities chosen for the grant, was told to renovate 100 units of foreclosed or abandoned housing over the next three years. HUD notified Evanston it was chosen on Feb. 11. The city received its instructions this week.
The NSP2 Grant, part of the American Recovery and Reinvestment Act, has two key elements, said Lehman Walker, Evanston’s director of community development. The first portion, which is mandatory, centers on the acquisition, rehabilitation and reoccupancy of 100 foreclosed or abandoned units. The second portion, Walker said, revolves around what Evanston chooses to do with money left over from the mandatory renovations.
“A lot of it will depend on our acquisition costs,” Walker said. “We’re hoping to redevelop two parcels of vacant land in West Evanston to 98 units of housing. But right now it’s premature to put a figure there.”
Evanston initially applied for a $40 million grant. After it received only $18 million, the city scaled back its plans, said Sarah Flax, Evanston’s community development and block grant administrator. Flax said the development of the vacant industrial property in West Evanston was part of the original proposal.
“It hasn’t changed our ideas; it’s just changed how we’re going to go about implementing them,” Flax said. “We will probably end up doing a smaller scale new development, but it’s not finalized.”
Flax said Evanston is currently looking at a wide range of sources from which to leverage additional funding. Since HUD signed Evanston’s grant agreement on Feb. 11, city staff have been working to present a revised version of the budget, Flax said. The revised version should be in HUD’s hands in 30 days, she said.
“The clock has started ticking, and we don’t want to sit around because the longer we sit around, the less time we have,” Flax said. “Once (HUD has) approved the revised (budget), we will start implementing the program.”
The grant money will affect Evanston’s 2nd Ward, 5th Ward and 8th Ward, said Ald. Delores Holmes (5th), who will hold a ward meeting on Thursday to hear from her constituents about nearby foreclosures and vacant buildings.
Some residents in the affected areas said they are worried the project will generate unfair competition in the housing market for people trying to sell or rent their houses.
“I can’t imagine the residents getting concerned over getting rid of vacant buildings in the neighborhood,” Holmes said in response. “But I hope they come out there and voice their opinions to the other residents.”
Flax said there is no reason for residents to worry about competition because the city’s new housing will be given to residents that are income-qualified. Housing is only available to those who live in households which make at or below 120 percent of the area’s median income.
“We don’t have the entire market,” Flax said. “It’s targeted for people who are housing cost-burdened.”
But Flax said she thinks this grant will bring exceedingly positive changes to Evanston. Renovation of the foreclosed residences will increase property values in the area, she said.
“Any community is the sum of its parts,” Flax said. “If any part is struggling, it affects everybody.”
Walker said he also sees the grant as an opportunity for Evanston to move forward.
“And improving the housing stock where it needs attention will only add to the livability of the city,” Walker said. “How can you not be pleased with that result?”[email protected]
