Neighborhood Stabilization Program (Recovery Act Funded)
Program Objective
Neighborhood stabilization through acquisition and rehabilitation, land banking, disposition, or demolition of abandoned and foreclosed residential property. Also, to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons of low and moderate income.
Eligibility
Eligible Applicants
- Homeowner
.Establish financing mechanisms (down-payment assistance) for low- to moderate-income homebuyers.
Purchase and rehabilitate foreclosed or abandoned homes.
Create and operate land banks to manage vacant properties.
Demolish blighted structures to prepare for redevelopment.
How to Apply
Award Procedure
To be announced.
Decision Timeline
- Approval: From 60 to 90 days
NOFA must be issued no later than 75 days after enactment of ARRA. HUD must award funds within 150 days after enactment and obligate all funds within one year of enactment.
Program details & compliance
Description
The Neighborhood Stabilization Program (NSP), specifically the $2 billion NSP2 round funded by the American Recovery and Reinvestment Act of 2009 (ARRA) (Recovery Act), provides emergency assistance to state/local governments and non-profits. It focuses on acquiring, rehabilitating, or redeveloping foreclosed, abandoned, or blighted residential properties to stabilize communities, reduce vacancy, and bolster home values.
Mission Categories
Primary: Home Improvement
Other categories:
Rural Housing
Use of Funds
Allowed Uses
Recipients may undertake a wide range of activities directed toward neighborhood stabilization. Applicants develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations. Some of the specific activities that can be carried out with Neighborhood Stabilization – 2009 funds include acquisition of real property; relocation; clearance and demolition; land banking, rehabilitation of residential and structures. In addition, NSP funds may be used to pay for homeownership counseling within certain limits. Recipients may partner with or contract with other local agencies or nonprofit organizations to carry out part or all of their programs.
All eligible activities must benefit persons whose income is at or below 120 percent of area median income.
No funds may be used for ineligible activities or those that do not benefit the target populations. All funds must be used within 3 years of the date funds are available to the grantee for obligation.
Required Documentation
.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart E — Cost Principles
- Subpart F — Audit Requirements