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NEIGHBORHOOD STABILIZATION PROGRAM (NSP)
What is NSP?
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.The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.
The program is targeted to households with incomes at or below 120 percent (120%) of the area median income with a portion of the funds targeted to households at or below 50 percent (50%) of the area median income.
2008 MEDIAN INCOMES BY HOUSEHOLD SIZE |
BERKELEY, CHARLESTON, DORCHESTOR COUNTIES |
# Occupants |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
120% of AMI |
49,080 |
56,040 |
63,120 |
70,080 |
75,720 |
81,240 |
86,880 |
92,520 |
50% of AMI |
20,450 |
23,350 |
26,300 |
29,200 |
31,550 |
33,850 |
36,200 |
38,550 |
What NSP is NOT?
NSP is NOT a foreclosure prevention program. HUD has provided no funding for counseling or to bring a past due mortgage current. Funding is to be used strictly to help stabilize neighborhoods negatively impacted by already foreclosed or abandoned property.
What is a Foreclosed Property?
A property that has been foreclosed upon at the point that, under state and local law, the mortgage or tax foreclosure is complete and title for property has been transferred from the former homeowner.
South Carolina's NSP Timeline
South Carolina as a whole will receive $49,158,407 in NSP funding. Of this amount, Greenville County was provided a direct allocation from HUD of $2,262,856 and Richland County was allocated $2,221,859. The remaining amount, $44,673,692, must be administered at the state level. The administering agency is the South Carolina State Housing Finance and Development Authority (Authority). The Authority has been designated to administer the NSP funds for the purpose of stabilizing neighborhoods, and to preserve affordable housing opportunities for the citizens of South Carolina.
Date |
Activity |
Nov-08 |
NSP action plan published for public comment |
24-Nov 08 |
NSP action plan public comment period ends |
1-Dec 08 |
Authority submits NSP application to HUD |
17-Dec 08 |
Request For Allocation (RFA) issued |
| 06-Feb 09 |
RFA due to Authority by 5:00 pm |
Feb-09 |
Awards made by Authority |
Jun-10 |
100% of funds obligated |
South Carolina's NSP Allocation
Description of NSP Program |
Allocation Amount |
Tier I – Local NSP Initiatives Program
For Tier I Areas of Greatest Need (20 counties) only. Projects will be selected through a RFA process.
Eligible projects:
1. Financing mechanisms to purchase and rehabilitate foreclosed properties
2. Acquisition and rehabilitation of abandoned or foreclosed properties
3. Land banking of foreclosed properties
4. Demolition of blighted structures
5. Redevelopment of demolished or vacant properties
The responses submitted under this RFA will be competing for a total funding amount of $29,037,900. While there is no limit on how much money a respondent can request, the Authority anticipates that no county will receive more than $10 million in NSP funding initially. This is subject to change based on identified need and quality of proposals. |
$29,037,900 |
Tier II – Low Income Rental Housing Program
For Tier I Areas of Greatest Need (20 counties) only to serve low income beneficiaries at or below fifty percent (50%) of area median income. Eligible projects: Acquisition, redevelopment and rehabilitation of abandoned or foreclosed properties. Projects will be selected through a RFA process and must include at least 10 units per proposal to be considered.
The responses submitted under this RFA will be competing for a total funding amount of $11,168,423. While there is no limit on how much money a respondent can request, the Authority anticipates that no county will receive more than $10 million in NSP funding initially. This is subject to change based on identified need and quality of proposals. |
$11,168,423 |
Administration |
$4,467,369 |
Total 2008 NSP Allocation |
$44,673,69 |
See related documents:
- SC NSP Action Plan (Revised by SCSHFDA on 12-23-08)
- Tier I - Local NSP Initiatives Program
- Tier II - Low Income Rental Housing Program
- NSP Construction Manual
- Environmental Review Guidance on NSP
The Lowcountry's Regional Approach to NSP
On Monday October 20th, twelve (12) regional partnering agencies from the Charleston Metro area came together (primarily local government entities, entitlement/non-entitlement, CDBG administrators, housing authorities /lenders, financiers, foreclosure partners) to receive a briefing and cultivate a collaborative discussion and approach to accessing Neighborhood Stabilization Program (NSP) funding opportunities for the region taking into account the limited timeline and expectations laid out by the US Department of Housing and Urban Development regulations.
The group discussed the benefits of taking a multi-jurisdiction approach, and agreed to support one another and a lead entity to make a request to the Authority to secure funds and show collaboration and capacity. Partners agreed it would be advantageous for the Lowcountry Housing Trust (LHT) to submit a regional “letter of interest”, requesting funding for the tri county with the initial partners around the table sending support letters. A follow up meeting was held on Monday, November 17th including initial stakeholders and regional housing providers to discuss in more detail an action plan. The objective is to ensure the maximum amount of funds are committed locally and a commitment for all regional government and non-government entities to work together to develop and implement a successful NSP program.
For more information on the Lowcountry's Regional Action Plan contact Tammie Hoy at 843.973.7285 or tammie@lowcountryhousingtrust.org.
USEFUL LINKS:
Neighborhood Stabilization Program - HUD website
NSP Frequently Asked Questions - HUD website
HUD Foreclosed Properties Data Resources
HUD Foreclosure Listing - HUD website
HUD Dollar Homes
LHT's November 17th Presentation
Federal Register - NSP Regulations/Program Requirements
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