HUD has awarded $7 billion through the Neighborhood Stabilization Program (NSP) to hard-hit communities struggling to reverse the effects of the foreclosure crisis. NSP funding is helping communities to purchase foreclosed homes and to either rehabilitate them or tear them down. In addition, the program can help families to purchase these properties. In essence, NSP is helping make these houses homes again. As the House of Representatives considers whether or not to eliminate this program, we would like to set the record straight on some misconceptions of NSP.
NSP is not a foreclosure prevention program. NSP was established for the purpose of stabilizing communities that are suffering from the foreclosure crisis. And it’s working. All across the country, communities are targeting foreclosed properties that are at high risk of becoming abandoned. Instead of dragging down the property values of surrounding homes, NSP funds are doing what they were designed to do – stabilize neighborhoods.
To date, NSP has helped communities rehabilitate nearly 9,500 homes. Homes like the one that was purchased by Lottie Stidhum in Las Vegas, NV. After successfully graduating from the Section 8 Family Self Sufficiency program, Lottie purchased a 2,077-square foot home for her and her son for $103,000. With help from Nevada Partners, she also received $25,000 for the down payment, closing costs, and principal buy down.
As the program continues, NSP is expected to impact 100,000 properties. Already, more than 36,000 homes have been or are being purchased or rehabilitated. NSP will ultimately impact communities like the City of Milwaukee and its Westlawn Housing Initiative. Working with the City’s housing authority, Milwaukee’s redevelopment plan leverages $7.5 million in Low-Income Housing Tax Credits to help turn around an entire neighborhood.
But wait, there’s more! NSP is helping future home owners. Between 2000 to 2006, Lansing, Michigan lost 7 percent of its population and the number of vacant homes nearly doubled. Using NSP funds, the City purchased more than 80 foreclosed homes, most of which will be rehabilitated and sold to lower income families. To sustain quality housing for low-income special needs populations, some of the homes will be sold to One Church/One Family (OCOF) Nonprofit Housing Corporation where they will coordinate with local churches to refer homeless families, make rental subsidy available, and provide ongoing support services.
NSP’s success story doesn’t just come from the data you may find online, but from the testimonies of new home owners across the country. Visit HUD’s website to read just three of those stories.
NSP has helped communities across the country bring their neighborhoods back to their former selves. To cut off funding just as this program is taking root in neighborhoods would be counterproductive.