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PRESS RELEASE FROM LEGISLATOR KATE M. BROWNING |
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MEDIA RELEASE NOVEMBER 25, 2008 |
CONTACT:
JOSHUA SLAUGHTER (Browning) |
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BROWNING AND BISHOP ENSURE HOME OWNERSHIP IS FOCUS OF FEDERAL AID Shirley, NY – Suffolk County Legislator Kate Browning (WF-Shirley) and a representative of Congressman Tim Bishop met with officials from Suffolk County’s Economic Development Department on Monday in response to concerns that Suffolk County intended to use new federal housing funds to create new rental housing units in the Mastic, Mastic Beach and Shirley hamlets. Legislator Browning and Congressman Bishop strongly oppose using such funds for new rentals and received the Department’s commitment yesterday that no federal funds will be used to create rentals in the Tri-Hamlet area. These funds are authorized by the Housing and Economic Recovery Act of 2008, which was signed into law earlier this year in response to the need to stabilize communities distressed by high foreclosure rates. Through this program, Suffolk County has received approximately $5.7 million, which will be used for communities in the Town of Brookhaven. Congressman Bishop voted for the legislation when it was considered by the U.S. House of Representatives. “The Tri-Hamlet community is already saturated with affordable rentals,” Legislator Browning said. “We have an opportunity to use the federal aid to take back our neighborhoods, but by including more rentals in the plan, we would be taking a step back rather then forward. The congressman and I were not going to let that happen.” “I am pleased to work with Legislator Browning and be responsive to the community,” Congressman Bishop said. “We will ensure that these federal funds will be used as they are intended -- to stabilize and revitalize the Tri-Hamlet area through responsible home ownership.” Suffolk County’s Economic Development Department applied Housing and Economic Recovery Act funds and drafted the Neighborhood Stabilization Plan (NSP), which was released this past month. By law, the U.S. Department of Housing and Urban Development (HUD) targets funding to communities with high foreclosure rates. The funds will be used to purchase and rehabilitate these homes before they are transferred to non-profit organizations for the purpose of selling the properties as affordable housing to residents earning up to 120% percent of the median income of our area, which is $116,500 for a family of four in Suffolk County. The law also requires funds to be targeted to those areas with the greatest need. Suffolk County identified Mastic, Mastic Beach, and Shirley as such a community. Legislator Browning and Congressman Bishop called for the meeting with the Economic Development Department immediately upon discovering that the County’s draft plan contained a proposal to utilize a portion of the money for low-income rental units that would have remained available for up to 30 years, and to assert their objections to such a plan. While supporting the need to stabilize these communities, the officials called for the immediate removal of any rental units from the NSP. As a result, the plan was modified. Both officials have been assured by the Department of Economic Development that any funds spent in the Tri-Hamlet area will be designated exclusively for homeownership purposes. Any rentals created through the program will be located in areas away from those with the same saturation levels in Shirley, Mastic, and Mastic Beach. The new draft creates two tiers for funding. Tier one will only be used towards home ownership, while the second tier will be targeted for rentals and home ownership. The tri-hamlet area will be targeted for tier one funding. The legislation’s guidelines state that 25 percent of the funds must assist households making 50 percent of the median income. For a family of four this would amount to $48,550. Subsidies will be put in place to make homes affordable for purchase to these families. If rentals are the only means of assisting them, then these rentals will be created outside of the Tri-Hamlet area and other communities in the 3rd Legislative District that are currently saturated with rentals. “I want to thank all the community members that spoke up and flooded the department with emails, calls, and letters,” concluded Browning. “I live in Shirley and know the impact past programs have had on the area. Home ownership is the key to revitalizing our housing market here, and I will continue to work with Congressman Bishop to make sure we focus all our resources to do that going forward.” |
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