The Neighborhood Stabilization Program (NSP) was established to help stabilize communities with many foreclosures and vacant properties through purchase and redevelopment of properties.
The first round of NSP funding will address about 1,800 units of foreclosed and vacant housing. Local Initiatives Support Corporation (LISC) estimates that there are about 50,000 foreclosed and vacant homes in Minnesota.
First Funding Round (NSP1):
- Housing and Economic Recovery Act (HERA) of 2008 created initial funding.
- Distributed by formula.
- Available only to governments.
MN recipients of NSP1 funds include:
- Minneapolis & St. Paul plus Anoka, Dakota and Hennepin counties.
- State awards to additional locations through MHFA listed here.
Second Funding Round (NSP2):
- American Recovery and Reinvestment Act (ARRA) of 2009 created $2 billion in NSP2 funds, which are awarded competitively.
- Allows applications by non-profits.
- NSP2 awards were announced January 2010 and Minnesota received a total of $37.5 million (see details below).
Federal:
- Proposed “TARP for Main Street” bill includes $1.5 billion for third round of NSP (NSP3).
- The House passed Wall Street Reform Protection Act of 2009 (HR 4173), which included $1 billion for NSP 3.
- In January 2010, Sen. Bob Casey introduced the Homeowner’s Relief and Neighborhood Stabilization Act of 2010 (S 2969), which includes $1 billion for a third round of NSP.
Funding:
- Under NSP1 ($4 billion nationally), MN received $58 million, including $38 million which went to MHFA.
- Under NSP2 ($2 billion nationally), MN received $37.5 million. Minneapolis (as part of a consortium with Brooklyn Park and Hennepin County) was awarded $19.455 million; St. Paul was awarded $18.031 million.
Administration:
- HUD administers NSP programs.
- 5 Minnesota localities administer their own programs.
- MHFA administers state program; see the NSP page at the MHFA website.
Kristen Fitzpatrick, Metropolitan Consortium of Community Developers, is a contributor to MHP's coverage of this issue.
Updated March 15, 2010.