Proposal A

Proposal B: Hold Back a Portion of Neighborhoods' Funds
Until Housing Requirement is Assured

1. Description of Proposal:

All Phase II program funds are allocated directly to neighborhoods. Neighborhoods, through their NRP plans, prioritize how their NRP funds are spent. A portion of each neighborhood’s allocation not spent on housing activities is held in reserve until it is clear that the NRP Program’s Housing Require-ment will be met.

2. Who Plans and Sets Priorities?

Every neighborhood does its own planning, and every neighborhood receives an allocation of NRP funds. Neighborhoods, at their own initiative, can do joint neighborhood planning or can pool funds with other neighborhoods or public agencies for a community or citywide project. If it is determined that the Housing Requirement is not being met by the total NRP program, then some restrictions may be placed on the release of the neighborhoods’ held-back funds.

3. How are NRP funds distributed?

All Phase II program funds are allocated directly to neighborhoods. A formula will be used, similar to Phase I, that is based on neighborhood characteristics such as population and housing condition, to determine how much each neighborhood gets.

4. How is the Housing Requirement* addressed?

Some funds for each neighborhood are held in reserve until the NRP Program’s Housing Requirement is met.

5. How are citywide priorities addressed?

The NRP program will encourage neighborhoods to invest their funds in citywide priorities, but there will be no requirement that neighborhoods do so and no setting aside of NRP funds program-wide for such projects.

* The state legislation that created NRP requires that 52.5% of all NRP funds be spent on housing and housing-related activities.