Neighborhood Stabilization Program (NSP)

Overview

Grants to communities to address the housing foreclosure crisis created by subprime and other problematic mortgage lending. This program is authorized under the federal Community Development Block Grant (CDBG) Program. See “Where to Apply” below.

Uses

Acquisition, rehabilitation, land banks, demolition, redevelopment (new construction), financing mechanisms, and housing counseling.

Eligibility

Existing eligible NSP grantees, that are units of local government, which have successfully implemented their original grant contract and have met their original projected goals.

Funding

Competitive Program – there will be no cap on the amount of funds that can be requested. Applicants are asked to base their request on what is necessary to complete the proposed project given other sources of funds and the ability to complete the project within 18 months of a contract award.

Terms

All grant funds must be used for activities that benefit low and moderate-income, and middle-income persons (up to 120 percent of area median income). Twenty-five percent of the funds must benefit low-income persons (up to 50 percent of area median income). Refer to program guidelines.

How to Apply

Customer Service Center, Electronic Single Application for Assistance. The Single Application for NSP funding must be submitted within 60 days of the grantee being notified of their eligibility to apply for the NSP funds.

FAQs

USEFUL LINKS: