|On September 26, 2008, the US Department of Housing and Urban Development (HUD) allocated $3.92 billion in Neighborhood Stabilization Program funding to States and to Community Development Block Grant (CDBG) entitlement communities particularly hard hit by home foreclosures. These funds are to be used to establish financing mechanisms for the redevelopment of foreclosed-upon homes and to purchase residential properties, establish land banks, and demolish blighted structures.|
All states and localities receiving direct allocations were required by the U.S. Department of Housing and Urban Development for the Neighborhood Stabilization Program (NSP) to develop Action Plans. The plans describe how funds will be distributed to areas of greatest need within each jurisdiction, using three required factors (and any others grantees deem appropriate). Needy areas include those: (1) with the greatest percentage of home foreclosures; (2) the highest percentage of homes financed by a subprime mortgage related loan; and (3) identified by the grantee as likely to face a significant rise in the rate of home foreclosures.
While the plans were submitted to HUD by December 1, 2008, they may have been revised and refined in the subsequent months. These initial plans provide an early
|NSP Round Two|
On May 4, 2009 HUD announced that the Department would begin soliciting grant applications for a second round of nearly $2 billion in NSP funding to be awarded on a competitive basis to states, local governments and non-profit housing developers to combat the effects of home foreclosures.
Enterprise Community Partners has prepared two summary documents to assist advocates and potential applicants, one providing an overview of application and eligibility requirements, and one describing changes for the second round of funding.