PROVIDENCE, RI – Today, U.S. Department of Housing and Urban Development (HUD) Secretary Shaun Donovan joined U.S. Senator Jack Reed and members of the Congressional delegation, along with Mayor Angel Taveras, for a tour of Providence neighborhoods that received federal Neighborhood Stabilization funds.

The tour, which included several properties along Hyat and Joslin Streets, highlighted the success of the Neighborhood Stabilization Program (NSP), which is aimed at revitalizing neighborhoods hardest-hit by the foreclosure crisis.  Over the last several years, Senator Reed has helped secure about $26 million in federal Neighborhood Stabilization Funds to help local communities throughout Rhode Island acquire, redevelop, or demolish foreclosed properties.

“Neighborhood Stabilization funds have been put to work in Rhode Island rehabbing housing and revitalizing neighborhoods.  This is a smart investment in strengthening our communities, putting more people to work in construction jobs, and bolstering the local economy," said Reed, a senior member of the Senate Banking, Housing, and Urban Affairs Committee, who helped craft the housing legislation that allocates NSP funding.  “The revitalized homes we just toured show that federal funding in partnership with local stakeholders can make a tangible difference in reversing the effects of foreclosure.  House by house, we can fight back against foreclosure.”

During the event, Reed and Donovan also stressed the need to pass the American Jobs Act, which includes Project Rebuild, a $15 billion initiative that would build upon the foundation of the NSP by helping to stabilize home prices in distressed neighborhoods; leverage capacity in the private sector; and address commercial vacancies.  If Congress passes the proposal, HUD estimates that Rhode Island could receive up to $33 million in Project Rebuild funding to help revitalize more neighborhoods.

“Thanks to the City of Providence, the Olneyville Housing Corporation, the Neighborhood Stabilization Program and the vision of Rhode Island’s congressional delegation, Olneyville is now well on its way to a successful revitalization.” said HUD Secretary Shaun Donovan. “Because we can’t wait for Congress to act the President recently announced new refinancing options to help underwater borrowers in Rhode Island.   But now Congress must step up and pass the American Jobs Act to help rebuild neighborhoods and create jobs in Rhode Island and across the country.”

Recent HUD statistics have shown that communities with neighborhood stabilization investments have seen 67 percent better home sale price changes, 73 percent saw better vacancy rate improvements, and 47 percent saw better home sale and vacancy rate improvements, as compared to similar communities without neighborhood stabilization improvements.

"As the Secretary said, more in Congress need to join me in supporting the NSP proposal, and I am pleased to have Secretary Donovan back in Rhode Island so he can see firsthand what we have accomplished with neighborhood stabilization funding and what more the state could achieve with additional federal support," concluded Reed.