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The Department of Housing and Urban Development (HUD) issued a Notice of Funding Availability (NOFA) for the second round of Neighborhood Stabilization Program funds (NSP2). The notice makes available $1.93 billion as appropriated in the American Recovery and Reinvestment Act of 2009 to states, local governments and nonprofits for assisting in the redevelopment of abandoned and foreclosed homes. Enterprise has developed a summary of the changes to NSP and a summary of the competitive application requirements as established in the NOFA. Grants will be awarded on a competitive basis and applications for funds are due on July 17, 2009.
HUD also issued a NOFA for HUD’s FY 2009 NSP Technical Assistance Program (NSP-TA). The notice makes available up to $50 million to national and local technical assistance providers to support NSP grantees. Applications for NSP-TA funding are due on June 8, 2009.
The NSP was authorized under the Housing and Economic Recovery Act of 2008. Visit Enterprise’s website for more information on NSP.
In this paper, Enterprise identifies obstacles to creating and implementing successful NSP strategies and suggests several solutions to complement recent efforts by Congress and President Obama to tackle the foreclosure crisis, including expanding safe harbor for servicers, targeting foreclosure prevention and loan restructuring to NSP areas, and three mechanisms for TARP investment for neighborhood stabilization efforts.
On February 17,2009, President Obama signed the American Recovery and Reinvestment Act (ARRA) into law. This bill included $2 billion for a second round of funding for the Neighborhood Stabilization Program (NSP) along with several major changes to the program, some of which will affect the first allocation and some of which will only apply to the second allocation. A summary of the changes is outlined below. The changes are divided into those that will affect the original round of NSP funding, allocated in the Housing and Economic Recovery Act of 2008 (HERA), and those that will only affect the second round of NSP funding as established in ARRA. However, until HUD releases its interpretations of the new ARRA language, there may be changes to the categories below. Changes to the Neighborhood Stabilization Program in the American Recovery and Reinvestment Act of 2009.
On Sept. 29, HUD issued a Notice explaining the regulations and procedures under which the Neighborhood Stabilization Program will operate. These funds may be used to purchase and rehabilitate abandoned and foreclosed homes. Summary of Neighborhood Stabilization Program
Regulations (PDF, 72KB)
Statutory and Regulatory Improvements to the Neighborhood Stabilization Program (NSP)
Dec. 30, 2009 (PDF, 221B)
The National Community Stabilization Trust (NCST) is a new national nonprofit organization created to connect services and investors holding foreclosed properties with local organizations and coalitions working to stem the decline of communities with high concentrations of vacant and abandoned foreclosed properties.
: Questions and Answers For Housing Developers. Prepared by the National Community Stabilization Trust (NCST). Dec. 11, 2008 (PDF, 234KB)
The National Community Stabilization Trust is sponsored by:
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