Although some states receiving Neighborhood Stabilization Program (NSP) dollars funneled the grant money directly to its cities to manage, Kentucky has awarded the dollars directly to the non-profits, instead.

Earlier this year, Governor Steve Beshear announced the awarding of NSP dollars to two Lexington nonprofit organizations.  Hope Center and Community Ventures Corporation (CVC) will help subsidize creative alternatives for foreclosed and abandoned property.  The awarded amounts are $1.72 million and $2.75 million, respectively.

Governor Beshear stated that the intent is to transform vacant lots, foreclosed and abandoned property into “new opportunities for ownership.”  Other goals are to put a stop to declining property values, provide continued support to Lexington’s tax base and continue to provide quality community services.

CVC will acquire, rehab and sell foreclosed properties in several of the area’s counties.  In doing this, the organization will rescue real estate that would otherwise have resulted in abandoned property and blight within the communities.

Properties that are beyond repair will be torn down, and new homes will replace them.  Households with income not to exceed 120 percent of the area’s median income may qualify to buy the newly built or newly refurbished homes at a reduced rate.

In some cases, rentals will be made available.  Along with mortgage assistance, homebuyers will be required to take, at least, 8 hours of housing counseling provided by a HUD-approved agency.

CVC President and CEO Kevin R. Smith acknowledged that Lexington was one of the cities in the state that had been dealt the hardest blow.  Vacant property can devastate neighborhoods, so he believes these funds will enable homebuyers and eligible renters to repopulate the many areas that are currently distressed.

A social service agency and homeless shelter, the Hope Center is tasked with the redevelopment of vacant properties and to build efficiency rentals for providing affordable housing to graduates of their drug and alcohol rehab programs.

Cecil Dunn, executive director for Hope Center, stated that he believes the funds they received will bring stability to neighborhoods.  In addition, those who were previously homeless, but have now become responsible citizens, will be given greater opportunities for stability in their lives.

More information is available on each organization’s website as follows:

• Communities Ventures Corporation – http://www.cvcky.org/

• Hope Center – http://www.hopectr.org/