Nearly $4 million from the American Recovery and Reinvestment Act, or the federal economic stimulus package, has been allocated to the city of Evansville and the Evansville Housing Authority.
Mayor Jonathan Weinzapfel's office announced Thursday the city will receive $2 million that will be used to revitalize some of Evansville's oldest neighborhoods and provide assistance to residents behind on their rent and utility bills who are on the verge of becoming homeless.
The U.S. Department of Housing and Urban Development has allocated $795,964 in Community Development Block Grant funds and more than $1.2 million in Homeless Prevention Funds for the city, according to a statement released Thursday by the mayor's office.
The Housing Authority, which has yet to identify specific projects for the money, is to receive more than $1.8 million in Public Housing Capital Funds.
"The (Community Development Block Grant) monies will be used for revitalization in our older neighborhoods including building new homes, rehabilitating others, demolishing those that are beyond repair and for infrastructure improvements," Weinzapfel said in a statement. "The Homeless Prevention Funds will be used to help residents pay their rent and utility bills in order to help keep them in their homes rather than becoming homeless. In addition, the city has already asked the local Commission on Homelessness to make recommendations on how the funds should be utilized."
The Community Development Block Grant program awards funds annually to entitled cities, urban counties and states to ensure affordable housing and create jobs through the expansion and retention of businesses. Evansville received an allocation of $2.9 million last year.
The Evansville Department of Metropolitan Development plans to use Community Development Block Grants to improve the Front Door Pride area. The City Council is scheduled to vote March 9 on an ordinance that would appropriate about $2.8 million in Community Development Block Grant funds to buy, rehabilitate and maintain properties in the Front Door Pride area. Tom Barnett, Department of Metropolitan Development executive director, has said he intends to spend most of that money this year.
The Housing Authority's allocation is separate from the city's because it is a municipal corporation under Indiana law and not a city or federal agency.
Executive Director Mildred Motley said there is "definitely going to be a use for the money," but she and her staff have not identified specific projects. The Housing Authority has 966 public housing units and historically has spent money on things such as roofing, electrical systems and demolition.
"There are a lot of possibilities. ... " Motley said. "I don't want to speculate until I have a chance to talk to the staff."