Neighborhood Stabilization Program (NSP)

Grants to communities to address the housing foreclosure crisis created by subprime and other problematic mortgage lending. This program is authorized under the federal Community Development Block Grant (CDBG) Program. DCED is also soliciting proposals for a Consortium application under the American Recovery and Reinvestment Act. This second opportunity for funding is known as NSP2. See "Where to Apply" below.

Uses:

Acquisition, rehabilitation, land banks, demolition, redevelopment (new construction), financing mechanisms, and housing counseling.

Funding:

Competitive Program – average sized grant determined based upon population and need factors.

Eligibility:

Communities with a HUD risk score of six and above or significant subprime lending. See the following Data Reference links. HUD Risk Score - Data File (see column Q), HUD Risk Score Methodology Description, Subprime Mortgage Lending by County – Data File NSP Subprime Lending, Map of Greatest Need Areas NSP Greatest Needs Map

Terms:

All grant funds must be used for activities that benefit low and moderate-income, and middle-income persons (up to 120 percent of area median income). Twenty-five percent of the funds must benefit low-income persons (up to 50 percent of area median income). Refer to program guidelines.

Where to Apply:

Customer Service Center, Electronic Single Application for Assistance, NSP Guidelines and Application Kit. Deadline for NSP ended February 6, 2009. NSP2 Consortium Application Instructions. Deadline is July 8, 2009.

FAQs:

USEFUL LINKS:
•HUD Website for NSP
NSP Action Plan
•NSP Action Plan Spanish
•Data on Middle Markets and REO Properties
•DCED PowerPoint Presentation on NSP
•NSP-FannieMAE REO
•Recording of Housing Alliance Conference Call on NSP - November 10, 2008
•Stabilizing Neighborhoods By Addressing Foreclosed and Abandoned Properties - Alan Mallach NSP Discussion Paper – Mallach
•The Work of Neighborhood Stabilization – Charles Buki

Purpose of Funding:

• Community Development
• Housing
• Low Income Assistance - Community
• Housing - Local Governments
• Low Income Assistance - Local Governments