Neighborhood Stabilization Program 2
Properties in foreclosure continue to be a problem across the country, prompting the U.S. Congress to add the Neighborhood Stabilization Program – 2 (NSP2) to the American Recovery and Reinvestment Act of 2009. NSP2 is a competitive program rather than an entitlement program.The legislation contained $1.93 billion in NSP2 funding.
Eligible uses of the NSP funds include:
- Housing Finance mechanisms for purchase of foreclosed homes.
- Purchase and rehabilitate homes that have been foreclosed upon.
- Land banking: must be built and occupied within 10 years.
- Demolition of blighted structures (may be limited to 10% of award).
- Redevelop demolished or vacant properties as housing.
Because of the continuing urgency of the foreclosure problem, the Congress has required that 50% of grant funds must be spent within 24 months and all funds expended within 36 months. The funds must be spent in eligible Census tracts, as defined by HUD for this program.
The City of Dayton will be applying for this grant on behalf of a Consortium of local governments composed of: Montgomery County; the cities of Fairborn, Kettering, and Dayton; and the Greater Dayton Premier Management. The Draft application may be viewed here.
In order to receive the grant, the Consortium must develop and publish an application, and solicit public discussion of, and comment on, the proposed activities. The application must be submitted to HUD by July 17, 2009.
You may email your questions or comments to The City of Dayton at NSP2 Comments.
This page will be updated as often as information becomes available concerning proposed uses of the NSP funds and is intended to be a means for local citizen participation and comment concerning the City's foreclosed and abandoned properties strategies.