Neighborhood Stabilization Program
(NSP)
New Federal Program!
HUD’s new Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. Kane County has been allocated a one time amount of $2.57 million (See documents below).
NSP funds may be used for activities which include, but are not limited to:
- Establish financing mechanisms for the purchase and redevelopment of foreclosed homes and residential properties
- Purchase and rehabilitate homes and residential properties which are abandoned or foreclosed
- Establish land banks for foreclosed homes
- Demolish blighted structures
- Redevelop demolished or vacant properties
NSP funds may be used for these activities in the “Areas of Greatest Need” as identified using the following criteria:
- Areas with the highest percentage of foreclosures
- Areas with the highest percentage of sub-prime mortgages
- Areas with the highest percentage of unemployment
- Other criteria that evaluate areas of risk for continued or increasing rates of foreclosure
The County is currently addressing the following requirements to apply for NSP Funds
- We are in the process of amending our Consolidated Plan to reflect the proposed uses of the new Neighborhood Stabilization Program. (See documents below)
- We must submit an application for the $2.57 million NSP funds.
- Both must be completed and submitted to HUD by December 1, 2008.
A fifteen day public comment period for the review of the Amendment to the County's Action Plan began on November 6, 2008 and ended November 20, 2008. Within that time period the County held a public hearing to receive public comment on the Amendment.
On November 24, at a special Committee of the Whole meeting the Kane County Board approved the Substantial Amendment to the 2008 Annual Action Plan adding the Neighborhood Stabilization Program. The County has submitted the Substantial Amendment and other supporting documents (listed below) to the Department of Housing and Urban Development for their review and approval. The potential funding dispersal would be in the first quarter of 2009.
For further information please contact Mark VanKerkhoff or Amy Coyne at (630)232-5380 or go to www.hud.gov/offices/cpd/communitydevelopment/
programs/neighborhoodspg/