May 17, 2004 - The NRP Policy Board has taken the final steps needed to provide neighborhoods with allocations for Phase II. At the Board's April 19 meeting it approved the distribution of $41,669,210 using the formulas adopted in March, with a minor adjustment that provides Phillips and Ventura Village with some additional resources to help support the American Indian Plan that will be a part of their Phase II Neighborhood Action Plans. American Indians produced and implemented a similar plan in Phase I.
The formulas used to make the calculations had been disseminated in January for neighborhood review and comment. The approval of the allocations by the Policy Board ended almost four years of uncertainty for neighborhoods. The amount available for distribution has dropped steadily since July 2000. The tax law changes adopted in 2001 and other actions that have occurred since that time reduced the funds available to the NRP from the Common Project from the $131 million originally expected to be allocated to neighborhoods to the $41 million allocated on April 19.
As part of its allocation action, the Policy Board also limited neighborhood expenditures during the first three years after they have an approved plan to 70 percent of the amount approved for their plan. This will help ensure that any future revenue shortfalls can be addressed without eliminating support for neighborhoods that enter Phase II later. The Board also indicated that 70 percent of the amount allocated to neighborhoods will need to be expended on housing or housing related programs, projects, activities or services in Phase II to ensure that the program meets its statutory housing investment obligation. It stopped short of making this a requirement for every neighborhood but indicated that neighborhoods should consider how much they can help as they develop their Phase II plans.
Download the Phase II allocations