neighborhood stabilization program
what is the neighborhood stabilization program?
The Neighborhood Stabilization Program (NSP) is a national program administered by the US Department of Housing and Urban Development (HUD) that provides state and local funds for purchasing abandoned, foreclosed properties. This money is meant to both curb blight and stem high vacancy levels all in an effort to stabilize communities. Where these funds are allocated depends on the number of home foreclosures, homes financed by a subprime mortgage, and homes in default or delinquency.
For more information about NSP, visit HUD's website here.
what role does the center play?
The Center for Great Neighborhoods, in partnership with the City of Covington and the Housing Opportunitites of Northern Kentucky (HONK), has received $5 million from the federal Neighborhood Stabilization Program. This partnership, or joint agreement, was created in an effort to more effectively administer NSP money to meet the requirements of the federal allocation. The City of Covington was the lead applicant, along with the Center and HONK.
For more information about HONK, visit HONK's website here.
what are some of the activities funded by NSP money?
Some of the housing activities that the Center will pursue with NSP funding will be the acquisition, rehabilitation, conversation and sale of foreclosed and vacant properties. All of these homes must be low and moderate income-occupied, measured by the Area Median Income (AMI) defined by the US Department of Housing and Urban Development (HUD). This means that potential owners for
set-aside for very low-income benefit
Kentucky set aside about 25% of the NSP grant for providing house for very low-income area families at or below 50% of the AMI. This means that the Center, City, and HONK must use a certain percentage of their NSP grant money to purchase, redevelop, and sell housing for individuals and/or families that qualify for very low-income.
To view a powerpoint further explaining NSP grant monies, click here.