Neighborhood Stabilization Program (NSP)

NEIGHBORHOOD STABILIZATION PROGRAM OVERVIEW

The Neighborhood Stabilization Program (NSP), NSP1 was authorized by the Housing and Economic Recovery Act of 2008 (HERA), which provided $3.92 billion in financing to state and local governments on a formula basis that factored percentages of home foreclosures, homes financed by subprime mortgages, and delinquencies.  NSP2 was authorized under the American Recovery and Reinvestment Act of 2009 and provided grants to states, local governments, nonprofits and other entities on a competitive basis.  The final round, NSP3, was authorized in 2010 under the Dodd-Frank Wall Street Reform and Consumer Protection Act and provided $1billion to state and local governments under the same funding formula as NSP1.

DeKalb County received a total of $23.7 million in NSP funding -$18.5 million in NSP1 and $5.2 million in NSP3. Georgia did not receive funding under NSP2.

The specific purpose of the program was to provide emergency assistance to state and local governments to acquire and redevelop abandoned or foreclosed properties that might otherwise become sources of abandonment and blight within their communities and sell these properties to eligible borrowers.

Eligible Activities

NSP funds can only be used for the following activities:

• Purchase and rehabilitate foreclosed properties in order to sell, rent, or redevelop such homes and properties.
• Demolish blighted structures.
• Redevelop demolished or vacant property.
• Establish or enhance the capacity of land to assist in property redevelopment efforts
• Establish funding mechanisms for the purchase and redevelopment of foreclosed homes including soft-seconds, loan loss reserves, and shared equity loans for low-and-moderate-income home buyers.      

CURRENT NSP1
NSP1 4QR -9 1-2019 to 12-30-2019

CURRENT NSP3
NSP3 4th QPR 10