Neighborhood Stabilization Program (NSP)
The Housing Economic and Recovery Act of 2008 provided $3.9 billion nationwide for the Neighborhood Stabilization Program (NSP), which will provide funds to state and local governments to purchase abandoned and foreclosed homes and residential property. This money will rejuvenate neighborhoods and communities that are hardest hit by the foreclosure crisis. Consistent with the existing program administered by HCD and local governments, this funding allows localities to renovate and rehabilitate those homes, eliminate blight and reinvigorate and stabilize the affected neighborhoods. The funds can be used to:
- Purchase and rehabilitate homes to sell, rent or redevelop
- Create land banks for homes that have been foreclosed upon
- Demolish blighted structures
- Redevelop demolished or vacant properties
- Establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties
Homes that are purchased with the NSP funds must be sold or rented to low or moderate income families. The Department released the NOFA for Tier 1 and 2 allocations in the last week of April 2009. Application workshops were conducted in the first weeks of May and applications were accepted continuously through June 15 and July 15, 2009.
The Department will provide regular updates to jurisdictions and other interested parties as information becomes available.
NSP Tier 3 Rental Housing Component Grant Awards – (Adobe PDF)
Final NSP Awards 10/07/09 – (Adobe PDF)
NSP Contract Management Training – (Microsoft Word)