Sen. Jack Reed, D-R.I., has introduced new legislation designed to provide $15 billion in targeted assistance to renovate vacant residential and commercial properties and help communities recover from the foreclosure crisis.
Reed's Project Rebuild Act directs $10 billion to states, cities and nonprofits through a formula modeled after the federal Neighborhood Stabilization Program, with an additional $5 billion to be distributed through new competitive grants.
‘Project Rebuild is a smart investment in strengthening our communities, putting more construction workers back to work, and bolstering the economy,’ says Reed, a senior member of the Senate Banking, Housing, and Urban Affairs Committee. ‘This initiative will provide a flexible source of funding to help local communities leverage federal dollars to effectively address vacant and blighted properties in their areas. House by house, block by block, we can fight back against foreclosure.’
Under the Project Rebuild Act, every state would receive a minimum of $20 million from the $10 billion in formula funds. Additional funds will be targeted to areas with home foreclosures, homes in default or delinquency, and other factors as determined by the U.S. Department of Housing and Urban Development.
‘Using proven strategies, Project Rebuild will help cities and towns redevelop vacant properties and revitalize neighborhoods and business districts,’ Reed adds.