|Neighborhood Stabilization Program|
Providing Security to Area CommunitiesThe 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.
Neighborhood Stabilization Program 1 (NSP1)
NSP1 is a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008. It provides grants to all states and selected local governments on a formula basis.
Under NSP1, the U.S. Department of Housing and Urban Development (HUD) allocated $3.92 billion on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The program was designed to stabilize communities across America hardest hit by foreclosures. Grant agreements for these funds have already been signed.
Neighborhood Stabilization Program 2 (NSP2)
NSP2 is a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, that provides grants to states, local governments, nonprofit organizations, and a consortium of nonprofit entities on a competitive basis. The Recovery Act also authorized HUD to establish NSP Technical Assistance (NSP-TA), a $50 million allocation made available to national and local technical assistance providers to support NSP grantees.
Under NSP2, HUD allocated $1.93 billion on a competitive basis to states, local governments, and nonprofit organizations. The program objectives and eligible uses did not change under the Recovery Act, but the allocation process and some regulations on the funds have changed. See the Notice of Fund Availability (NOFA) for NSP2 for additional information.
Neighborhood Stabilization Program 3 (NSP3)
NSP3 is a term that references the NSP funds authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010, that provides a third round of neighborhood stabilization grants to all states and select governments on a formula basis.
Under NSP3, The Dodd-Frank Act provided an additional $1 billion for the NSP that was originally established under the Housing and Economic Recovery Act of 2008. HUD will award grants to 270 states and selected local governments to mitigate the negative impact of the nation’s economic decline and housing market collapse and to stabilize and revitalize communities and areas hit the hardest. The regulations for NSP3 can be found within the Federal Register 75-64322.