Check eBay for FM band transmitters. If you can manage to filter out all of the VERY low power FM transmitters typically used for transmitting MP3 players, you'll find some probably-not-legal-but-hey-it's-eBay offerings around 1-10 watt. An example is this one which can transmit up to 6 watts:
http://www.ebay.com/itm/CZH-5C-1W-6W-76-108Mhz-FM-Stereo-Transmitter-Power-Supply-Antenna-/300802160628?pt=US_Ham_Radio_Transmitters&hash=item460934b7f4I don't know anything about these, but transmitters like this are abundant on eBay. 6 watts, with a decent antenna, would certainly provide coverage of a few neighborhoods, depending on terrain and such.
It appears the 1 watt Veronica design is still on the market:
http://www.aareff.com/en/1w-pll-fm-transmitter-kit.htmI HAVE used this transmitter (about 15 years ago, statute of limitations is way passed baby!) and it worked very well, if you can assemble and tune it up correctly. I ultimately had this transmitter working with a matching stereo generator board and an amplifier (maybe 30 watts total if I recall?) and it covered a large east coast city very well.