Van Hollen Proposes Innovative Legislation to Help Strengthen Communities in Baltimore, Cities Across America

Today, U.S. Senator Chris Van Hollen (D-Md.) introduced the Neighborhood Economic Development and Opportunity Act, innovative legislation that puts forward a new way to look at economic development and federal investment in struggling communities in Baltimore and across the country. This legislation would establish a pilot grant program for non-governmental entities, including non-profit and faith-based organizations, to provide economic support in underserved neighborhoods in urban areas of the United States. The bill aims to improve the health of distressed urban communities by investing in the personal development of residents and their neighborhood infrastructure. The program covers gaps in funding that prevent the completion of urban development projects across the country. 

“In Baltimore and cities across our nation, we know our local non-profits and faith-based neighborhood organizations serve as the heartbeat of their surrounding communities, bringing people together and helping those in need. These organizations are uniquely positioned to understand the economic hardships facing residents of our cities – and how best to address them – but are often overlooked in the federal grant process. This legislation opens the door for new partnerships and taps into the local expertise of these organizations in our work to strengthen urban areas and improve economic development initiatives. I’m proud to introduce this bill – and to have worked with partners in Baltimore on this concept, and I will be pushing for Senate consideration of this important measure,” said Senator Van Hollen.  

“The church, as a community stakeholder and trusted partner, has a responsibility to rebuild properties, streets, and parks in our neighborhoods so that people have a decent place to live, work, and worship near their church. For the last three years we took our plans and pleas to make churches the hub of the solution for the forgotten neighborhoods of East Baltimore to all corners of Washington, D.C. While everyone took the time to listen, Senator Van Hollen got to work and acted. We are hopeful that his bill will be quickly acted on and included in the COVID recovery legislation. If so, faith based institutions can integrate their work to restore people and rebuild neighborhoods and places to live and enjoy life around churches as an anchor,” said Pastor Donte Hickman of the Southern Baptist Church. 

Background:

The bill would establish a $600 million Neighborhood Economic Development and Opportunity pilot grant program.

• Provide Federal funding for up to 95% of the total cost of projects and programs.
• Total cost must be between $2.5 million and $50 million

• Eligible grantees include nongovernmental, nonprofit, faith-based, and charitable organizations, including Community Development Corporations and 501(c)(3)s.
• Projects and programs must:
• Be carried out in opportunity zones and areas that have experienced severe long-term poverty
• Provide services that improve employment skills, promote self-sufficiency and self-empowerment or revitalize physical infrastructure.

• A temporary Review Board would review and evaluate applications, and the Secretary of Commerce would select 12 recipients. 
• The board will give priority to proposals that reflect direct community neighborhood input and to applicant organizations that are headquartered in the communities they serve.

• Provide Federal funding for up to 95% of the total cost of projects and programs.
• Total cost must be between $2.5 million and $50 million

• Eligible grantees include Baltimore City, the State of Maryland, and nongovernmental, nonprofit, faith-based, and charitable organizations, including Community Development Corporations and 501(c)(3)s, located in or serving Baltimore City.
• Projects and programs must:
• Be carried out in opportunity zones and areas that have experienced severe long-term poverty in Baltimore City
• Provide services that improve employment skills, promote self-sufficiency and self-empowerment or revitalize physical infrastructure.

• The Review Board for the Neighborhood Economic Development and Opportunity program would review and evaluate applications for this initiative as well, and the Secretary of Commerce would select the recipients.