Office of Housing

NSP
American Recovery & Reinvestment Act

Neighborhood Stabilization Program (NSP)

2009 Recovery & Reinvestment Act Funds

 

The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized. NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis. NSP2, a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. The Recovery Act also authorized HUD to establish NSP-TA, a $50 million allocation made available to national and local technical assistance providers to support NSP grantees.

City of Chesapeake’s NSP Program:

The City has received $25,000 in Neighborhood Stabilization Program (NSP) funds for a planning grant.  Grant funds will be used to develop and implement a strategy to acquire and rehab foreclosed and abandoned properties and sell them at an affordable price to eligible first time homebuyers who are 120% of the AMFI.  The neighborhoods designated for NSP activities are South Norfolk and the upper Western Branch area.

Public information sessions were held on April 15 and April 23 at the South Norfolk and Western Branch libraries.  Comments from the public included a desire to reduce the number of rental properties, to increase homeownership, and to minimize “investor flipping”.  All public feedback has been positive. 

• The City is competing with private investors who are also in the market to purchase these properties.  The City’s goal is to stabilize the neighborhoods, increase affordable homeownership opportunities, and keep these properties affordable over a period of time.
• NSP regulations require 15% discount (acquisition) purchase price. 
• NSP regulations limit rehab cost to $25,000 per unit.
• Regarding the use of program year (PY) 30 (7/1/04-6/30/05), PY 31 (7/1/05-6/30/06), and PY 32 (7/1/06-6/30/07) HOME funding – these funds will be used as leverage to offset rehab costs that exceed the NSP $25,000 per unit rehab maximum. 
• The target number of homes to be rehabbed is 10-13 homes during an 18 month period.

Any questions regarding rehab call NSP Project Administrators:
Alisa Winston, Housing Program Coordinator @ (757) 382-6925
and
Dewayne Alford, CRHA Deputy Executive Director@ (757) 523-0401

Highlights of the NSP Notice

• NSP Notice - pdf

• Neighborhood Stabilization Program (NSP) Fact Sheet - pdf

• NOTICE OF COMMENT & PUBLIC HEARING
  Neighborhood Stabilization Program (NSP) October 12-22, 2009 - pdf