Dec. 10, 2010
In the last 16 months, 165 buyers have closed on foreclosed homes in Phoenix using federal Neighborhood Stabilization Program (NSP) Homeownership Assistance funds.
As part of the Housing and Economic Recovery Act (HERA) Congress passed in July 2008, $3.92 billion was provided to communities hardest hit by residential foreclosures and mortgage delinquencies. Through HERA, the city of Phoenix received $39,478,000 in NSP funds to help stabilize and rebuild neighborhoods, and allocated more than $2.8 million to fund this Homeownership Assistance Program.
The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance to eligible buyers of foreclosed homes anywhere in the city of Phoenix. Buyers must live in their newly purchased homes as their primary residences; investors are not eligible.
"Phoenix was one of the hardest hit cities in the country in terms of foreclosed and abandoned homes," said Councilman Tom Simplot, chairman of the City Council Housing and Neighborhoods Subcommittee. "Putting families back into these homes is a priority. Homeownership not only stabilizes families and neighborhoods, but also maintains viable schools and sustains healthy businesses."
The average income of households purchasing a home through the NSP Homeownership Assistance Program is $44,903. The average purchase price of the homes is $102,243 and the average household size is 2.22 people.
“NSP applicants don’t have to be first-time buyers but many of them are,” said Kim Dorney, city of Phoenix Housing Director. “We work with our community partners to provide information and assistance to help program applicants become successful homeowners.”
The homebuyer education requirements include completing eight hours of homebuyer education from a HUD-certified housing counselor and completing a one-on-one household budget/credit assessment from a HUD-certified counselor.
In August 2009, Abla Zumot Najjar became the first Phoenix homebuyer through the NSP Homeownership Assistance Program. “Purchasing my home through this program was a positive experience for me and I am grateful for the assistance I received,” said Najjar. “The past year has been wonderful in my home. I have built relationships with my neighbors who, like me, will be living in this community for awhile.”
NSP Homeownership Assistance funds will provide homeownership opportunities to 188 households. Because of the program’s success, a limited number of funds are still available. To participate in the Homeownership Assistance or any of the other NSP programs, call the NSP hotline at 602-262-6602 or visit phoenix.gov/nsphome. For other NSP programs within Arizona, visit yourwayhomeaz.com.