REPS. FUDGE, JOYCE AND KAPTUR INTRODUCE THE RESTORE OUR NEIGHBORHOODS ACT

“Homeowners who’ve done everything right have seen the value of their properties plummet due to vacant foreclosed properties. We must rebuild our neighborhoods now.”

WARRENSVILLE HEIGHTS, OH – February 20, 2013 – (RealEstateRama) — Congresswoman Marcia L. Fudge is pleased to announce introduction of legislation to aid states and cities in addressing the need to demolish vacant and abandoned properties. The Restore our Neighborhoods Act of 2013 (H.R. 656) was jointly introduced by Congresswoman Fudge (OH-11), Congressman Dave Joyce (OH-14) and Congresswoman Marcy Kaptur (OH-9) and unveiled today at a news conference in Cleveland.

The Restore Our Neighborhoods Act of 2013 is a successor to a bill introduced in 2012 by Congresswoman Fudge and Congressman Steven LaTourette.

“This legislation provides a strong, sensible and cost- effective tool to meet the immediate need of rebuilding our communities. The sheer volume of foreclosed and abandoned properties continues to lower property values in neighborhoods across the nation. These blighted structures invite crime and negatively impact the quality of life for residents who work hard to maintain their homes,” said Congresswoman Fudge.

“Communities in the 11th Congressional district, including Cleveland and Akron, have been hit hard by the foreclosure crisis and Ohio remains one of the hardest hit states. An estimated 15,000 homes are in need of demolition in Cuyahoga County alone. I am grateful to my colleagues, Congressman Joyce and Congresswoman Kaptur for joining with me in introducing this bi-partisan measure that provides resources for demolition to all 50 states.”

Restore Our Neighborhoods Act of 2013
• Permits the U.S. Treasury to allocate bonds to states, which will then be sold to investors.

• Allows proceeds from the sales to be used by land banks for demolition purposes (states without land banks can participate as well).

• Designates $4 billion for these bonds (Qualified Urban Demolition Bonds) and divides them into 2 different allocations:
o $2 billion divided equally among all 50 states ($40 million per state)
o $2 billion among Qualified States

• Allows states to use up to 100% of Hardest Hit Funds (HHF) to be used for demolition (currently HHF cannot be used for this purpose).
o Imposes a requirement that states spend all of the HHF funds within 2 years of enactment or 25% of the funds will be returned to Treasury.

Click here for a more information about the legislation.