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ATTN:
ALL BROKERS:
Neighborhood Stabilization Program
HUD’s new Neighborhood Stabilization
Program will provide emergency assistance to state and local governments to
acquire and redevelop foreclosed properties that might otherwise become
sources of abandonment and blight within their communities. The
Neighborhood Stabilization Program (NSP) provides grants to every state and
certain local communities to purchase foreclosed or abandoned homes and to
rehabilitate, resell, or redevelop these homes in order to stabilize
neighborhoods and stem the decline of house values of neighboring homes.
How
many local communities will receive direct funding from HUD?
More
than 250 local cities and counties received grants as well as all 50
states, including Puerto Rico and the District of Columbia. Funding
is also made available for the four Insular Areas.
How
did you allocate the funding?
Congress
intended this funding be targeted to areas of greatest need based on the
number and percent of foreclosures, subprime mortgages and
delinquencies and defaults. Further, Congress also required
that each state receive at least $19.6 million. Many states received
significantly more than this mandatory minimum.
What
will this money do?
This
funding is intended to stabilize neighborhoods. To do this, State and
local governments can:
·
Buy abandoned or foreclosed homes;
·
Redevelop demolished or vacant properties;
·
Demolish or rehabilitate abandoned, foreclosed or
blighted properties;
·
Offer down payment and closing cost assistance to
low- to moderate-income homebuyers
·
Reuse properties for affordable rental housing
For more information regarding this
program, contact us at (787) 300-2194.
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