Buffalo Rising Online

Aug 22nd 2008, 12:49pm By buffalorising

There has been so much debate on what to do about the housing situation in Buffalo. It seems that though there is a split in thinking, most agree that some demolition is necessary, but rampant demolition is an unworkable plan. Getting money from the US Department of Housing and Urban Development (HUD) would be a great boon to the community and it seems Congressman Higgins is aware and wants to make sure that WNY isn't forgotten.

The American Housing Rescue and Foreclosure Prevention Act has $4 billion earmarked for distribution as Community Development Block Grants. The grants will be used to rehabilitate or redevelop vacant property to attempt to stabilize neighborhoods. States and localities can also use the funds to buy vacant homes at a discount rate to try and rehabilitate them.

Higgins recently wrote HUD a letter explaining the unique needs that older cities and communities like Buffalo have. He noted that Buffalo has some 20,000 vacant properties in some form of foreclosure or delinquency. Higgins would like to see the money given out used for a rehabilitation and reuse program in addition to just getting money to demolish homes, especially for structures that are architecturally or historically significant.

Below is Higgins letter in full:

August 20, 2008

The Honorable Steven Preston
Secretary
United States Department of Housing and Urban Development
451 Seventh Street SW
Washington, DC 20410-0002

Dear Secretary Preston:

As you create a funding formula for the distribution of emergency Community Development Block Grant funds as provided for by Public Law 110-289, the American Housing Rescue and Foreclosure Prevention Act, I strongly urge you to consider the plight of older industrial cities and regions like Western New York. While Western New York may not lead in terms of impact from the immediate foreclosure crisis as compared to other communities, the fact is that it faces its own vacant housing problem that is more chronic, systemic, and prolonged than in almost any other American community. Local leaders across my district struggle on a daily basis with the vacant housing crisis. Vacant properties are one of the top concerns of citizens in the City of Buffalo, and the problem extends into inner ring suburbs like the Town of Cheektowaga, and communities like the City of Jamestown in Chautauqua County.

The relief provided by the American Housing Rescue and Foreclosure Prevention Act could act as a step in the right direction for these communities. In the City of Buffalo alone, it is estimated that there are more than 20,000 vacant properties in some form of foreclosure or delinquency. That is an extraordinary number, and the stark fiscal realities facing local and state governments make the problem much more difficult to manage, both in the short-run as funds must be prioritized to immediately demolish properties that act as severe blights, and in the long-run as communities do not possess the resources necessary to truly and comprehensively address how the vacant housing crisis will affect planning and land use decisions in the future.

It is imperative, then, that as you construct the funding formula for dispensation of funds to local and state governments, you consider the prolonged vacant housing problem that exists in older industrial regions like Buffalo and Western New York. The criteria provided by Congress for HUD to consider provides ample flexibility to provide substantive relief for communities, like those that I represent, that have been dealing with the vacant housing crisis over a protracted period of time.

The formula you create has the potential to help these communities turn a corner for a more stabilized future amid tumultuous economic times. First and foremost, funds must be targeted to help these struggling communities isolate and target discrete neighborhoods where vacant homes can actually be purchased and rehabbed quickly and affordably, or in the alternative, where demolishing homes and piecing together land-banks for future re-use may be more appropriate. Relief that is targeted will have a substantial and demonstrable impact on communities that are currently forced to triage, sometimes haphazardly - when dealing with vacant, foreclosed homes across large census tracts.

In addition, significant consideration must be made for the reality that too many vacant homes constitute blight, and are public health and safety hazards for neighborhoods. Many of these homes are beyond salvation and repair, and while local governments may have slated them for demolition, resources simply can’t keep up with the problem. For communities facing high vacancy rates, I would urge your formula to provide accommodations for the need by local governments to restore homes that can be restored and tear down homes that are beyond repair.

Vacant homes that have historical or architectural significance to their communities should be considered as prime candidates for purchase and rehabilitation as you develop your funding formula. These types of homes usually hold particular relevance to their communities, and if they sit vacant for long periods, have the potential to act as negative symbols of decline and blight. Using this formula to transform these structures from symbols of decline to symbols of optimism will have a significant effect on communities and markets by injecting fresh energy and inspiring confidence among citizens.

In putting together this funding formula, HUD has a unique opportunity to provide targeted and helpful relief to communities – like those in Western New York - that have been struggling to deal with their vacant housing problem for quite some time. I strongly urge you to consider the plight of these communities over the coming days and weeks as you carry out the ambit of the American Housing Rescue and Foreclosure Prevention Act.
Sincerely,

BRIAN HIGGINS
Member of Congress