AMERICAN RECOVERY NEIGHBORHOOD STABILIZATION PROGRAM (NSP2)
Recovery Plan

Program Purpose
HUD’s Recovery Act funds support three themes that align with the broader goals of the Recovery Act: (1) promoting energy efficiency and creating green jobs, (2) unlocking the credit markets and supporting shovel-ready projects, and (3) mitigating the effects of the economic crisis and preventing community decline.  HUD’s overriding objective in support of these goals is the creation and preservation of jobs.

Public Benefits
The expected benefits of NSP are to stabilize property values and prevent neighborhood blight.  In addition, we will contribute to HD’s overriding goal of creating and preserving jobs.  NSP2 will provide funding for the purchase and /or redevelopment of thousands of foreclosed and abandoned homes and properties across the nation.  These actions will help to stabilize neighborhoods by limiting the downward pull hat vacant properties exert on surrounding properties and will provide the opportunity  for thousands of households to realize or regain the ability to own their own home.  It will also aid communities by providing ready source of funding to demolish and clear blighted structures or to land bank real property until such time a demand can be re-established.  Further, the inclusion of non-profit organization as eligible grantee is NSP2 will foster greater innovation in support of the goals of the program and offers the opportunity to increase coordination and cooperation between the public and private sectors.

Projects and Activities
NSP2 grantees have the opportunity to develop programs responsive to local real estate market conditions by choosing among the five eligible uses of NSP funds.  Those uses are: (1) establishment of financing mechanisms for purchase of foreclosed homes; (2) purchase and rehabilitation of abandoned or foreclosed homes; (3) land banking of foreclosed homes; (4)  demolition of blighted structures; and (5) redevelopment of vacant or demolished property.  As NSP2 is a new competitive program open to states, local governments and non-profits organizations, HUD cannot estimate the nature and scope of the programs that applicants may propose or that may ultimately be selected for funding.  HUD will manage NSP TA under a demand-response system that will direct individual grantee and group technical assistance as requested by HUD or grantees to address risk and /or capacity issues in implementing NSP1 and 2.

Project/Activity:  There are five eligible uses under NSP2 (and a greater number of possible activities): establishment of financing mechanisms for purchase of foreclosed homes; purchase and rehabilitation of abandoned or foreclosed homes: land banking of foreclosed homes; demolition of blighted structures; and redevelopment of vacant or demolished property.
Description : As NSP2 is a new competitive program open to states, local governments and non-profit organizations, HUD cannot yet estimate the nature and scope of programs that applicants may propose or that may ultimately be selected for funding.
Funding: $1,930,000,000.00

Project/Activity: NSP TA will provide technical assistance to NSP1 and @ grantees to increase their capacity to carry out neighborhood stabilization programs.
Description: NSP TA will use the demand-response system to determine which communities need assistance. HUD plans to direct some of the assistance to NSP1 high risk grantees to provide on-site assistance to meet the statutory fund use deadline. HUD HQ, selected field offices, and grantees will also be able to request or direct TA to address specific capacity needs.  TA may include, but is not limited to, individual on-site consultation and training, group training, web materials, and printed materials such as detailed model programs.
Funding: $50,000,000.00

Project/Activity: HUD will provide training, technical assistance, monitoring, enforcement, research and evaluation activities.
Description: HUD will hire staff, build IT systems and work with grantees to ensure effective and efficient implementation.
Funding:$20,000.000.00

CLICK HERE for the NSP2 Application