Letter to The Honorable Jim Gibbons, Governor of the State of Nevada

Letter

Congresswoman Dina Titus of Nevada's Third District wrote today to Governor Gibbons and other state officials overseeing funds from the Neighborhood Stabilization Program (NSP) following this morning's announcement by the Department of Housing and Urban Development that uncommitted NSP funds would be reallocated to the hardest hit areas.

Below is the text of the letter.

May 18, 2010

The Honorable Jim Gibbons
Governor -- State of Nevada
State Capitol
101 N. Carson Street
Carson City, NV 89701

Dear Governor Gibbons,

Earlier today, Housing and Urban Development (HUD) Secretary Shaun Donovan announced that HUD will be working to provide additional funding through the Neighborhood Stabilization Program (NSP) for the communities that require further assistance to combat the ongoing housing crisis through a third round of Neighborhood Stabilization Program funding. I am pleased that HUD will be providing additional funding for communities that need it most. According to Secretary Donovan, Southern Nevada is "ground zero" of the foreclosure crisis and it is imperative that we work to secure some of this additional funding for our community.

As you know, in order to provide this funding, HUD will be reallocating NSP 1 funds from recipients who fail to dedicate their funds prior to the statutory 18-month deadline of September or October of this year. Unfortunately, according to performance records provided to my office by HUD, your housing agency has not allocated a significant amount of funding, despite the fact that the funding was provided more than a year ago. This troubles me greatly. If these funds remain unallocated, your agency will lose the funding and our communities will suffer. I hope that you will work with your housing agency to dedicate these funds as expeditiously as possible. We cannot afford to leave a penny of federal money on the table because your agency failed to administer the program effectively.

Furthermore, the Secretary noted that "NSP 3" funding would be awarded to agencies based on NSP 1 performance. In order to qualify for the largest amount possible, your agency must demonstrate to HUD the ability to put these funds to work. If your agency is able to show the capability to effectively administer these funds, it will greatly improve your ability to receive additional funding to benefit Southern Nevada.

If not, you will not only forfeit existing dollars allocated previously, but will also fail to qualify for additional, much-needed funding for Southern Nevada. As we learned in the NSP 2 application process, need alone will not qualify our state for funding. It is imperative that your housing agency demonstrate the ability to effectively spend these funds.

I look forward to continuing our work together on this important issue and hope that you will consider me an advocate in the process. My office remains ready to assist in any way that will benefit communities throughout Southern Nevada. We need these dollars to help families stay in their homes.

Sincerely,

Dina Titus
Member of Congress

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