|Program (?)||Neighborhood Stabilization Program I|
Neighborhood Stabilization Program I (NSP I) was a formula allocated grant authorized by Congress under the Housing and Economic Recovery Act of 2008 (HERA). Eligible recipients included state and local governments. Under NSP I, HUD awarded each state a minimum of $19.6 million to remedy instability in communities heavily affected by foreclosures. Other grantees, such as local municipalities, were made eligible for a range of funds based on the area’s foreclosure rates, percentage of subprime mortgages, abandoned homes, and other indicators of distressed housing. Both NYS HCR and NYC HPD received NSP allocations that were used in New York City.
NYS HCR through HFA received approval for the State’s initial allocation of Federal NSP funds (Round 1) in January, 2009. On April 14, 2009, Governor Paterson announced that $59 million in Round 1 NSP grant awards would be distributed to 29 local programs throughout the state, including projects in New York.
New York City received an allocation of $24.3 million to acquire and rehabilitate foreclosed and abandoned single-family and multifamily residential properties in targeted neighborhoods. HPD has deployed its NSP I funds using two strategies: the Owner-Abandoned Strategy and the Real Estate Owned Program (REO). The Owner-Abandoned Strategy (25 percent of NSP funds) will assist with the acquisition and rehabilitation of multi-family buildings in foreclosure where the owner has abandoned the property. These units are part of HPD’s mandatory set-aside for households earning up to 50 percent of AMI. The REO Program (75 percent of NSP funds) will partially fund a credit facility established to facilitate acquisition and rehabilitation of REO homes by an affiliate of a local non-profit, Restored Homes (RH), with HPD oversight. RH was set up to perform a similar function for HUD foreclosures in the Asset Control Area Program (ACA) and Dollar Home Program. Using a combination of City, State, Federal and private funds, Restored Homes will acquire and rehabilitate foreclosed homes and sell them at prices affordable to qualified homebuyers earning less than 120 percent of AMI.
|Benefit Classification (?)|
|Supply or Demand||Supply|
|One-Time or Ongoing||One-Time|
|Benefit Type (?)||Grant|
|Government Agency (?)||US Dept of Housing and Urban Development|
|Program Information (?)|
|Scale||Small Scale (between 1 and 999 units produced)|
|Developer/Owners (?)||Non-Profit, Government|
|Property Information (?)|
|Building Type||Multi-family, One- to Four-family|
|Occupant Tenure (?)||Rental, Homeownership|
|Occupant Income Restrictions (?)||Very Low-Income, Low-Income, Moderate-Income|
|Other Targeting Information (?)||
Neighborhoods with high foreclosure risk scores
|More Information||NYC HPD
|Available on CoreData.nyc?||No|