(1) The Legislature finds that:
(a) Significant declines and consistently depressed appraised values make it impossible for business enterprises, including community-based development organizations, to generate sufficient revenues from business or real estate ventures in low-income neighborhoods to fund the redevelopment costs and other administrative expenses needed to foster new developments in these hard-to-develop areas.
(b) This deterioration contributes to the decline of neighborhoods in both rural and urban areas, causes a reduction of the value of property comprising the tax base of local communities, and eventually requires the expenditure of disproportionate amounts of public funds for health, social services, and police protection to prevent the development of slums and the social and economic disruption found in slum communities.
(c) The available means of eliminating or reducing these deteriorating economic conditions and encouraging local resident participation and support is to provide support assistance and resource investment to community-based development organizations. The Legislature also finds that community-based development organizations can contribute to the creation of jobs in response to federal welfare reform and state Temporary Cash Assistance Program legislation, and economic development activities related to urban and rural economic initiatives.
(2) The intent of this legislation is to provide community-based development organizations with the necessary administrative and operating funds to retain project staff to plan, implement, and manage job-generating and community revitalization developments in distressed neighborhoods. This assistance will strengthen the community-based development organizations, assist local governments to enhance and expand revitalization efforts, and contribute to expanding the base of commerce, business, and affordable housing that will serve persons with very low incomes or low incomes, or WAGES recipients, using a bottom-up approach.