HUD releases info for Neighborhood Stabilization Program grants
The Department of Housing and Urban Development (HUD) has released the regulations for applying for grants for redevelopment of abandoned and foreclosed homes under the Housing and Economic Recovery Act, 2008. HUD expects to allocate nearly $4 billion to local governments through its Neighborhood Stabilization Program (NSP) in an effort to restore property values in communities that have been hard hit by the foreclosure crisis.
State and local governments may use NSP funds to establish financing mechanisms for the purchase and redevelopment of foreclosed homes, establish land banks for foreclosed homes, demolish blighted structures and redevelop those demolished properties. However, 25 percent of the funds must be used to redevelop property that will house individuals and families with incomes that are 50 percent of the area median income or below. Also, all NSP-funded programs must benefit low- and moderate-income residents whose income does not exceed 120 percent of the area median income. “Clearly, the intent is to put this money to work in communities with the highest need and to have a meaningful impact,” HUD Secretary Steve Preston said in a statement.
More information on NSP is available at