Authorized by the Housing and Economic Recovery Act of 2008 (HERA), the Neighborhood Stabilization Program (NSP) provides emergency funding in grants to states and localities to aid in the purchasing, rehabilitating, redeveloping, and reselling of foreclosed or abandoned homes to stabilize neighborhoods and stem the decline of the property values of neighboring homes.
NSP received $3.92 billion in 2008 that was allocated by formula to states and local governments. Congress provided an additional $2 billion for NSP in the economic stimulus bill enacted in 2009, which HUD will allocate competitively to states, local governments, nonprofits, and others. NSP is run much like the Community Development Block Grant program (CDBG). NSP funds may be used to establish financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties, to purchase and rehabilitate abandoned or foreclosed homes and residential properties, to establish land banks for foreclosed homes, to demolish blighted structures, and to redevelop demolished or vacant properties.
All activities funded by NSP must benefit low- and moderate-income persons whose incomes do not exceed 120 percent of area median income (AMI). In addition, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of AMI.
Useful Link: HUD’s Neighborhood Stabilization Program Resource Exchange
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- February 1, 2012
According to the White House fact sheet on President Obama’s Plan to Help Responsible Homeowners and Heal the Housing Market, released today, the Administration’s FY 2013 Budget will propose $1 billion for the Housing Trust Fund and $15 billion for Project Rebuild. The Budget is set to be released on February 13. - October 12, 2011
On October 6, the House Financial Services Subcommittee on Insurance, Housing, and Community Opportunity held a hearing on the Obama Administration’s response to the housing crisis. Representatives from Treasury, HUD, and the U.S. Department of Agriculture (USDA) all testified about how programs run by their agencies are addressing the housing crisis.
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- February 16, 2011
The group has been working diligently for two years to address housing needs for the elderly. The members haven't earned a dime, but none of them is in it for the money. "Because of our local affiliation with management and ownership, people have trust in us to do what we say we're going to do," said Bryan Slaba, CEO of Wagner Community Memorial Hospital-Avera and the board's leader. "The reason we got involved in this was for one thing and one thing only, and that was to investigate and create housing for our elderly in our community." - April 28, 2010
The North Dakota Housing Finance Agency, USDA Rural Development and the Minot Vocational Adjustment Workshop, Inc. will break ground in Belcourt, ND, at 11 a.m. on Thursday, April 29, for an affordable housing development specially designed to meet the needs of individuals with both physical and developmental disabilities.
Neighborhood Stabilization Program - Resources
- December 13, 2011
NCSHA’s priorities, adopted annually by its Board of Directors after consultation with all state HFAs, set the agenda for NCSHA’s business development activities and advocacy before Congress, the Administration, and the federal agencies concerned with housing, including HUD, USDA, and the Treasury. - September 16, 2011
In this letter, the undersigned members of the Foreclosure Prevention and Neighborhood Stabilization Task Force offer several principles in response to the Request for Information to ensure that creative strategies to deal with the REO inventory protect and strengthen foreclosure-impacted neighborhoods.
