REP. DAVIS VOTES AGAINST BILL TO ELIMINATE NEIGHBORHOOD STABILIZATION FUND
The Neighborhood Stabilization Fund permits cities such as Chicago to strengthen neighborhoods hardest hit by the foreclosure crisis by providing resources to allow cities and states to buy up and rehabilitate foreclosed and abandoned homes that are driving down home prices, undermining the tax base and destabilizing neighborhoods.
Seven million families have lost their homes to foreclosure since the housing bubble burst, and another three million are expected to lose their homes in the next year, with nearly 14 million Americans out of work through no fault of their own. The foreclosure crisis remains the major threat to the economic recovery.
These foreclosed and/or abandoned properties quickly become fire hazards and breeding grounds for crime and rats and other pests and a destination for fly dumping. These empty and decaying properties drag down property values, contribute no property taxes, are blight on neighborhoods and a never-ending source of problems for neighbors.
Chicago and Cook County have both received funding under the Neighborhood Stabilization Fund. Chicago already has more than 450 properties on their way back to health and plans to redevelop up to 2500 properties over the next three to five years.
Efforts to eliminate the Neighborhood Stabilization Fund are opposed by the National League of Cities, National Association of Counties, U.S. Conference of Mayors, along with a broad range of housing groups, and consumer and civil rights organizations - such as the Center for Responsible Lending, NAACP, and Americans for Financial Reform. President Obama has indicated he would veto the legislation should it come to his desk.
Davis stated, "I am voting against eliminating the Neighborhood Stabilization Fund. Eliminating the Neighborhood Stabilization Fund is a reckless act with devastating consequences to our neighborhoods. At a time when the American people are rightly demanding that the government act to make those who caused the crisis pay, this act is instead now heaping additional burdens on local communities and governments. I have seen the ruin imposed on neighborhoods hard hit by unemployment and foreclosure. And I have seen how even modest investments by government can be leveraged many times over to keep communities viable and put people back to work. Government has a critical role to play in this recovery and I wholeheartedly reject efforts to abandon our hardest hit communities."