You can take action on this alert by reading the information below and following the directions at the bottom.

Congress must provide a minimum of $4 billion in federal neighborhood stabilization funding to help states, cities and communities reduce downward pressure on local housing markets.

The national foreclosure crisis is affecting not only individual families, but whole communities, cities and states that are struggling to manage the fallout of vacant and abandoned properties.

Congress should move forward with its commendable efforts to prevent future foreclosures. But neighborhood stabilization funding is key to the overall effort to stem the tide of foreclosures and stabilize communities hit hardest by this crisis. Current efforts are not enough to help ease the dramatic conditions.

Already tight state and municipal budgets are hard-pressed to cover the rising costs of boarding up abandoned properties, removing trash and combating increased vandalism, arson and property and personal crimes. Home prices are falling and middle-class wealth, long accumulated through home equity, is dwindling.

The funds provided would help to purchase vacant, blighted properties, rehabilitate them, and resell or rent them affordably to qualified families. Returning these properties to productive use is vital to overcoming the foreclosure crisis. And rehabilitation of these homes will also create construction jobs in an otherwise moribund sector.

At the end of 2007, Illinois had approximately 51,175 properties in foreclosure. Recent research indicates that the negative effect of these foreclosures can be felt up to a half a mile away and can depress property values for as long as five years.

Under the Senate-passed formula, Illinois stands to benefit from $136.2 million in direct funds for neighborhood stabilization with a multiplier effect of an additional $293.9 million as the grants are leveraged to create new jobs as houses are rehabilitated and returned to productive use. The estimated overall economic benefits of the neighborhood stabilization grants are $430.1 million in direct, indirect, and induced activity at the state level.

It is estimated that these funds would be used to restore 3,331 properties to productive use, providing safe, affordable housing to its occupants. Rehabilitating those houses is anticipated to generate 2,740 new jobs, most of which will be in construction, but will also stimulate jobs in retail, business services, restaurants, and the like.

In addition, localities can expect to see a direct return of $11.9 million in property taxes (since in many cases, banks will not pay taxes on properties they do not expect to sell) as well as a savings of $33.3 million on trash collection, police, and fire services that they must otherwise expend on foreclosed and abandoned properties. This analysis does not include the property tax revenues that will be retained from properties no longer at risk of significant declines from being in close proximity to foreclosed and abandoned houses.

Your message will be sent to each of the following targets:

Your U.S. Representative

A sample message appears below, which you may edit before sending.

This Action Alert Campaign is Closed.