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Middletown seeking bulk of Neighborhood Stabilization Grant funding

Consortium of Butler Couty communities seeking more than $25.6 million — $19.3 million for Middletown.

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By Ed Richter, Staff Writer 7:34 PM Thursday, July 9, 2009

MIDDLETOWN — While a consortium of Butler County communities and organizations will be seeking more than $25.6 million in the second round of Neighborhood Stabilization Grants for a number of projects, Middletown will be seeking $19.3 million of those funds.

Doug Adkins, community revitalization director, told Middletown City Council at its Tuesday, July 7, meeting, that the proposal “is a game changer” and “a 50-year decision.”

“We have to do it right the first time and do it smart,” Adkins said. “I think it’s a strong proposal.”

City Council voted unanimously to approve the submitting the NSP2 application for the federal economic stimulus funds as well as the consortium agreement with Butler County, the city of Hamilton, Butler Metropolitan Housing Authority and Neighborhood Housing Services of Hamilton.

Mayor Larry Mulligan Jr. said the consortium was a great step toward regionalism.

Of the $19.3 million, Adkins said the city is seeking $1 million will be for financial mechanisms, such as down payment assistance; $2.2 million to demolish blighted structures of which $1.2 million will be used to demolish blighted residential structures; $250,000 will be used for land banking vacant properties for up to 10 years for future redevelopment; $3.95 million will be used to purchase and/or rehabilitate homes and residential properties; $10.27 million will be used for the redevelopment of housing in the city; and $1.7 million for administration and contracting for needed services to execute the program. He said no permanent jobs will be created as a result of the program.

Adkins said that Butler County is planning to use about $2 million to demolish the former Lemon-Monroe High School in Monroe for future redevelopment. The remainder of the funding would go to Hamilton for various projects, he said.

Overall, the countywide consortium hopes to acquire and rehab about 70 properties; demolish 200 blighted properties; land bank about 70 lots; and provide down payment assistance for about 120 prospective homebuyers.

The U.S. Department of Housing and Urban Development issued the notice about the NSP2 funding program, and the city has until July 17 to have the application in Washington. Adkins said the other entities would be voting on the agreement and the application in the coming days. The public comment period started June 30 and ends on Friday, July 10.

He said the city will know later this year if it will be awarded funding and that the federal government may provide full or partial funding for the application.

Adkins praised the banking and real estate communities for their help in getting information to him to get the 90-page application ready.

Councilman Bill Becker asked why Hamilton and the county did not ask for more funding. Adkins said that was all they requested during the three weeks of discussions.

Councilman David Schiavone agreed with Adkins that “this could change the face of the city of decades.” Schiavone added that he believes HUD is trying to work with older, industrial cities and he hopes the city “can reap the rewards of this program.”

Contact this reporter at (513) 705-2871 or erichter@coxohio.com.

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