March 24, 2009
Phoenix Receives $39 Million to Fund Neighborhood Stabilization Program
The city of Phoenix received a $39.4 million contract for Neighborhood Stabilization Program funds under the Housing and Economic Recovery Act of 2008 (HERA), passed by Congress last year, the fifth largest funding allocation among U.S. cities and counties.
The first phase of the Phoenix Neighborhood Stabilization Program (NSP) offers low cost loans of $15,000 to assist with down payment and closing costs for eligible homebuyers that purchase a foreclosed home as their primary residence. There are federal eligibility requirements that must be met under this program for the house and the prospective homebuyer. For example: a family of four can earn up to $77,050. The house must be foreclosed and the property holder willing to discount the price. The homebuyer also must attend eight hours or homeownership counseling.
The NSP emphasizes market driven strategies, partnerships, and leveraging to increase the number of properties that can be restored to productive use. Additional programs include buyer assistance with rehabilitation, acquisition and rehabilitation (including multi-family housing), demolition and redevelopment within defined areas of greatest need. The city will be issuing a Request for Proposals in support of the NSP activities, specifically the more intensive programs for rehabilitation of foreclosed properties, later this month with programs being rolled out this summer.
Councilman Michael Nowakowski, chair of the Housing and Neighborhoods City Council Subcommittee, is ready for staff to put the funds to work for the residents of Phoenix.
"In the 2008 calendar year, more than 15,000 housing foreclosures occurred within the city of Phoenix. These much-needed funds will help hundreds of residents and neighborhoods impacted by foreclosures,” said Councilman Nowakowski.
More information on this program and on the overall foreclosure impacts is available at phoenix.gov/nsd/fland.html. Additional information specific to the first phase also can be requested by calling the Phoenix NSP program hotline at 602-262-6602.