March 15, 2011

The Facts about the Neighborhood Stabilization Program

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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.

22 Responses to The Facts about the Neighborhood Stabilization Program

  1. I would like more info on anyway you can help me achieve my goal which is owning my own home. I’m a disabled vet.

  2. I would like to know, why the NSP Funds cannot be used to Purchase City Own Property. If anyone have an logic answer for me, please post. I am being tell this by City Of Deerfield Beach Community Development Manager.

  3. To Respose #1: In order to know if the NSP funds are available to you and if you qualify for the assistance, google Neighborhood Stabilization Program and the name of your city. The financing is arranged thru different types of agencies, usually non-profits. They are the ones you need to seek out. They require a few very simple classes and provide you with a certificate that makes you eligable.

    To: response #2 find your local Mortgage broker or loan officer. Local so you can meet them face to face. (Harder to lie in person than over the phone.) The V.A. has programs available for Vet’s assist in buying property. The Loan professional should have knowledge of these programs.

  4. I have seen this program help a number of families purchase NH Real Estate here in New Hampshire. It’s a great program and I hope it continues.

  5. I am working with various city and county governments to utilize the FHA 203k in conjunction with down payment assistance programs to accomplish a look of the positive effects on neighborhoods that you are seeing with NSP funds.

  6. Why is that these programs are only to help low income people. I lost my home to foreclosure last year and no one can help me and my family because of our income. I, too am looking for a hand up, not a hand out. We lived in our home for 10yrs. and lost it to foreclosure because of the auto industry here in Mich. What can a family do that sunk all there money in a previous home, that still resulted in foreclosure and just need help with a down payment for a new home. I don’t qualify for any help. What is the problem.

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  8. YES, CAN SOMEONE PLEASE TELL ME HOW TO APPLY FOR THE FANNIE MAE FIRST LOOK NEIGHBORHOOD STABILIZATION PROGRAM. ALSO, TO APPLY FOR DOWN PAYMENT ASSISTANCE. I LIVE IN SACRAMENTO, CA 95691. THANK YOU

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  15. I am a qualified Developer and General contractor for the NSP program in Chicago. The program is not working like it could or should be working. We have been waiting for over 2 years to get proprties to rehab and put on the market. I have a stack of applications from African Americans who live in these blighted areas that the NSP program services. All we keep getting from Mercy Portfolio Services and the city of chicago dept. of housing is the runaround,politics as usual in Chicago. HUD help the people who this program is supposed to help. God Bless

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