Description
The Neighborhood Stabilization Program (NSP1) was first created by Congress in the Housing and Economic Recovery Act of 2008, followed by the American Recovery and Reinvestment Act of 2009 (NSP2), and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (NSP3). The program is an effort to mitigate the neighborhood effects of foreclosures in areas of greatest need. NSP funds help stabilize the property values in targeted communities by decreasing the rate of decline in property values.
NSP is a component of the Community Development Block Grant (CDBG). All funds must serve households at or below 120% of the area median income and a minimum of 25% of the funds must serve households at or below 50% of the area median income, as the national objective.
Eligible Grantees
- Units of local government
- Nonprofit organizations
- For-profit organizations (developers and contractors)
- Quasi-governmental entitles (housing authorities and urban renewal authorities)
Eligible Activities
NSP funds may be used for activities which include, but are not limited to:
- Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties,
- Purchase and rehabilitate homes and residential properties abandoned or foreclosed,
- Establish land banks for foreclosed homes,
- Demolish blighted structures,
- Redevelop demolished or vacant properties
Through NSP1, the State of Colorado was granted over $53 million. These funds are to be used to mitigate the neighborhood effects of foreclosures in areas of greatest need. HUD allocated these funds as follows:
| Colorado State Program |
$34,013,566
|
| Adams County |
$4,600,211
|
| City of Aurora |
$4,474,097
|
| City of Colorado Springs |
$3,904,989
|
| City and County of Denver |
$6,060,170
|
In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act allocated more than $17 million in NSP3 funding to the State of Colorado in 2011.
| Colorado State Program |
$5,098,309
|
| Adams County |
$1,997,322
|
| City of Aurora |
$2,445,282
|
| City of Colorado Springs |
$1,420,638
|
| City and County of Denver |
$2,700,279
|
| City of Greeley |
$1,203,745
|
| City of Pueblo |
$1,460,506
|
| Weld County |
$1,023,188
|
Contact
Alison O'Kelly, 303-864-7821, alison.okelly@state.co.us
Links
- Guidelines and Grantee Resources
-
NSP Guidelines and Regulations
NSP Program Income Guidelines
NSP Grantee Resources - Action Plans and Progress Reports