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NEIGHBORHOOD STABILIZATION PROGRAM

NEIGHBORHOOD STABILIZATION PROGRAM. A Component of HUD’s Community Development Block Grant (CDBG) Program. Neighborhood Stabilization. Authorized by Housing and Economic Recovery Act of 2008 (HERA) Funding Level = $3.92 Billion Grants to states and local governments.

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NEIGHBORHOOD STABILIZATION PROGRAM

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  1. NEIGHBORHOOD STABILIZATION PROGRAM A Component of HUD’s Community Development Block Grant (CDBG) Program

  2. Neighborhood Stabilization • Authorized by Housing and Economic Recovery Act of 2008 (HERA) • Funding Level = $3.92 Billion • Grants to states and local governments

  3. Neighborhood Stabilization • Not all regular CDBG entitlements will receive NSP funds • Unfunded entitlements to access NSP funds through states • States may award NSP funds to entitlements receiving own NSP grant • States authorized to directly implement activities

  4. Neighborhood Stabilization • HERA specifies formula distribution, eligible uses, targeting requirements • HUD will use Notice approach to implementation

  5. Neighborhood Stabilization • HUD established formula and announced on website (www.hud.gov/nsp) Sept. 29 • Formula is based on number and percent by state and local government for: • Foreclosures • Subprime loans • Delinquencies • Reallocation provision – Failure to apply, unacceptable application, or poor performance

  6. Neighborhood Stabilization • HUD approach equates release of allocations with distribution of funds • Application is substantial amendment to existing annual CPD action plan • Grantees to submit amendment not later than December 1, 2008

  7. Neighborhood Stabilization • HERA directs that funds be treated as CDBG funds except: • As modified by HERA; • HUD may specify alternatives to CDBG requirements solely to expedite use of funds; • HUD may not alter fair housing, nondiscrimination, labor relations and environment.

  8. Neighborhood Stabilization • HERA imposes alternative low-mod benefit requirements • All funds must benefit individuals at or below 120% of area median income (AMI) • 25% of all funds must be used to benefit individuals at or below 50% of AMI

  9. Neighborhood Stabilization • Eligible uses – 5 specified by HERA • Financing mechanisms • Acquisition and rehabilitation • Land banking • Demolition • Redevelopment • Will allow up to 10% for grantee administrative cost • Pre-award costs allowable

  10. Neighborhood Stabilization • Homes acquired or redeveloped for use as primary residence must be sold at or below total cost of activities • All properties to be purchased at discount to current market appraised value

  11. Accessing the Disaster Recovery Grant Reporting (DRGR) System • Full name • Address • Phone number with extension • Fax number • Email address • Whether you will be the system administrator for your community • Last 6 digits of your social security number email DRGR_Help@hud.gov for set-up and questions

  12. NSP Workshops The sessions scheduled are: Friday, October 10, 2008: Wilshire Grand Hotel930 Wilshire BoulevardLos Angeles, CA 90017Guest room reservation: (888) 773-2888 Tuesday, October 14, 2008 Hilton Polaris8700 Lyra DriveColumbus, OH 43240Guest room reservation: (800) 885-1600 Thursday, October 16, 2008 Sheraton Safari Hotel and Suites Lake Buena Vista12205 South Apopka Vineland RoOrlando, FL 32836Guest room reservation: (407) 239-0444

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