Neighborhood Stabilization Program (NSP) Information
On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008 (HERA) to address the severe housing crisis. Title III of the Act appropriates $3.92 billion of grant funds under the Neighborhood Stabilization Program (NSP) for states and local governments to purchase and redevelop abandoned or foreclosed properties. The HERA directed the United States Department of Housing and Urban Development (HUD) and the city of Phoenix to target funding to areas with the greatest needs based on the extent of foreclosures, subprime mortgages, and mortgage delinquencies and defaults.
As funding recepients, city, county and state agencies must develop their own programs and funding priorities. However, they must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.
The city of Phoenix has kicked off their first program, "Homeownership Assistance" assisting buyers of foreclosed homes, townhouses or condominiums with $15,000 in downpayment and closing cost assistance. If you are interested in finding out how to purchase a foreclosed property using this program please see the information links in the box below "Buying a Foreclosed Property". If you are a a real estate professional or a lender or a mortgage broker representing a foreclosed property, please see the information links in the box below "Information for Real Estate Professionals and Lenders".
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