City seeks federal funds to demolish eyesores

The City of Shelbyville voted Thursday to apply for a grant for over a quarter million dollars that would go toward getting rid of blighted structures around town.

The National Stabilization Program (NSP) grant would be for $326,023 and would be given under the Housing and Economic Recovery Act of 2008, also known as the first stimulus package that was signed into law by former president George W. Bush.

Codes and planning director Kip Green says his department proposes to use the grant to demolish some of the properties on the city's list of blighted structures.

According to the grant, the blighted neighborhood properties apply only in specifically defined areas of Shelbyville.

"We propose to use this as a means of demolition and clean-up of those structures most threatening the health, safety and welfare of the community," Green wrote in a memo to the city council.

Green said the grant would enable the city to purchase those properties for the purpose of demolition and/or remodeling.

There is also a stipulation in the grant that the money must be spent within 18 months.

The NSP grant would require no matching funds from the city and would allow the grantee 10 years to complete the sale of the property.

"The grant would allow us to take structures from blight and unsightly conditions in appealing residences," Green wrote.

This is how the grant would work: Shelbyville Housing and Development Association (SHDA), a non-profit established by the Shelbyville Housing Authority, would buy the cleared lot at a discounted rate.

The National Stabilization Program calls for placing a family whose financial status meet the criteria of earning 120 percent of the average median income or less.

Then, working along with Habitat for Humanity, SHDA would build a residence while helping the families acquire financing.

According to information from the Tennessee Housing Development Agency, NSP funding is provided by a formula based on areas with the greatest number of home foreclosures, areas with the highest percentage of homes financed with sub-prime mortgages and areas identified as likely to face a significant rise in the rate of home foreclosures.