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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
 

NCSHA Blog Posts

  • October 29, 2015
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    Last night, the House passed HR 1314, the Bipartisan Budget Act of 2015, by a vote of 266 to 167. The yay votes included all 187 Democrats and 79 Republicans. The nay votes were all Republicans.

  • February 12, 2015
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    The Urban Land Institute's (ULI) Robert C. Larson Housing Policy Leadership Awards submission period is currently open. The awards, named after a former ULI trustee and ULI Foundation chairman, aim to honor local and state initiatives, programs, and policies that support and promote the production, rehabilitation, or preservation of affordable housing. Applicants for the awards must be a state (or a department or office within a state) or a unit of a local jurisdiction. The programs or policies submitted for the awards must have at least 25 percent of the units dedicated to households earning up to 120 percent of the HUD area median income (AMI). Exceptions can be made to the AMI requirement for programs and policies based in very high-cost areas if the applicant demonstrates the need for the initiative.

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    • March 20, 2017

      Key Congressional Committee Rosters for NCSHA in the 115th Congress.

    • February 27, 2015
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      The 2015 NCSHA Congressional Handout is available for download here. This effective tool may be used when speaking to members of Congress, state officials, and business partners alike. Filled with recent statistics and compelling graphics, this informational brochure may be used to share with your constituents the important work that HFAs do and why they do it.