Neighborhood Stabilization Program (NSP) Funding for Multifamily Affordable Rental Housing
What is the Neighborhood Stabilization Program?
The Neighborhood Stabilization Program (NSP) 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 goal of the program is being realized.
NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis.
NSP2, a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis.
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, provided a third round of neighborhood stabilization grants to all states and select governments on a formula basis.
The city of Phoenix received a total of $115.5 million in Neighborhood Stabilization Program (NSP) funds to help stabilize Phoenix neighborhoods impacted by the foreclosure crisis.The grant from the U.S. Department of Housing and Urban Development will be used to continue programs created in 2009 using $39.478 million in funds.
What are the NSP Requirements?
NSP requirements include, but are not limited to:
- Purchase price must be at least 1 percent below appraised value.
- Properties must be abandoned or foreclosed as defined by HUD.
- Properties must serve families at or below 50 percent of Area Median Income (AMI).
- Properties must include energy efficient improvements such as Energy Star rated appliances, dual pane/low-e windows, etc.
- Transit Overlay District
- High Priority Urban Village
- Redevelopment Area
- Neighborhood Initiative Area
- Neighborhood Renewal Area
- Rental Renaissance Area
- West Phoenix Revitalization Area
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