| Neighborhood Stabilization Program (NSP) |
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| Introduction |
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The Neighborhood Stabilization Program (NSP) is part of the Housing and Economic Recovery Act of 2008. $3.92 billion has been made available nationwide, to state and local governments. This one time grant program is being allocated under the Community Development Block grant program as emergency assistance to redevelop abandoned and foreclosed homes.
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| Amount of Resources |
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The statute calls for states to receive no less than 0.5 percent of the appropriation or $19.6 million as a minimum grant. The allocation to Oregon was the minimum amount of $19.6 million which was allocated to the state. No local jurisdictions received a separate allocation.
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| Program Notice / Timing |
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HUD published their official notice regarding the Neighborhood Stabilization Program on September 29, 2008. The state is required to submit to HUD a funding application and action plan by December 1, 2008. Oregon will have 18 months from the receipt of the resources to obligate or commit the resources.
The Neighborhood Stabilization Program provides more flexibility in administration than the state Community Development Block Grant Program (CDBG). States are not required to distribute funds to units of general local government as required under the CDBG program. States may carry out activities directly for some or all of its assisted activities. This includes procuring contractors, private developers and providing loans and grants through nonprofit subrecipients.
The state will be applying for additional counseling dollars through NeighborWorks. OHCS will post any new allocation decisions and information on this website as they become available.
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| Statutory Requirements |
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The statute calls for the funds to be used to:
- establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
- purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
- establish land banks for homes that have been foreclosed upon; and
- demolish blighted structures
The statute also provides direction to the state to give priority emphasis in targeting the
funds to "those metropolitan areas, metropolitan cities, urban areas, rural areas, low and
moderate-income areas, and other areas with the greatest need, including those:
- with the greatest percentage of home foreclosures;
- with the highest percentage of homes financed by a subprime mortgage related loan; and
- identified by the State or unit of general local government as likely to face a significant rise in the rate of home foreclosures."
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| Grant Admin / Next Steps |
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Oregon Housing and Community Services is being designated as the administering state agency for the Neighborhood Stabilization Grant. As required by statute, OHCS has gathered and analyzed information in order to identify areas of greatest need in the state as well as designed efficient and effective use of the resources and developed the method of distribution of funds. OHCS will be providing additional information through this website and other means to keep our partners informed on the development of the program.
Neighborhood Stabilization Program - Substantial Amendment
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| HUD Approves Ammendment |
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HUD has approved Oregon's Neighborhood Stabilization Plan that guides $19.6 million in federal funds to communities affected by foreclosures resulting from subprime mortgages.
"Oregon has strong consumer protection laws on the books that enabled the state to take action against more predatory mortgage lenders in 2008 than in previous years, and state-supported counseling services also have helped many families avoid foreclosure in the first place," Gov. Ted Kulongoski said. "But because it's impossible to be fully insulated from the nationwide mortgage crisis, we need to prevent the ripple effects of concentrated foreclosures. These dollars will keep communities viable and preserve the value of surrounding homes." Read the full story below:
 HUD News Release
OHCS News Release |
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| For More Information |
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For more information, contact:
Rich Malloy
Neighborhood Stabilization Program Coordinator
503.986.2142 | E-mail
Jody Haury
Neighborhood Stabilization Administrative Spec.
503.986.2112 | E-mail
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