Neighborhood Stabilization Program (NSP)


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. DCED is also soliciting proposals for a Consortium application under the American Recovery and Reinvestment Act. This second opportunity for funding is known as NSP2. See “Where to Apply” below.


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


Competitive Program – average sized grant determined based upon population and need factors.


Communities with a HUD risk score of six and above or significant subprime lending. See the following Data Reference links. HUD Risk Score – Data File (see column Q), HUD Risk Score Methodology Description, Subprime Mortgage Lending by County – Data File NSP Subprime Lending, Map of Greatest Need Areas NSP Greatest Needs Map


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. Deadline for NSP ended February 6, 2009. NSP2 Consortium Application Instructions. Deadline is July 8, 2009.



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