Nature of Program
NSP, authorized under the Housing and Economic Recovery Act (HERA) 2008, was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment through the purchase and redevelopment of foreclosed and abandoned homes and residential properties. The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements.
NSP grantees develop their own programs and funding priorities. However, 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 the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.
NSP3, a term that references the NSP funds authorized under the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010, provides a third round of neighborhood stabilization grants to all states and select governments on a formula basis.
Eligible Uses: NSP funds may be used for activities which include, but are not limited to:
Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
Establish land banks for foreclosed homes;
Demolish blighted structures;
Redevelop demolished or vacant properties
NSP-3 Substantial Amendments
NSP-3 Quarterly Performance Reports (by fiscal year)
NSP-1 Substantial Amendment
NSP-1 Quarterly Performance Reports (by fiscal year)