HUD has announced changes to its Neighborhood Stabilization Program (NSP), which helps communities acquire, rehabilitate and re-sell foreclosed and abandoned properties more quickly and help prevent further decline in hard-hit neighborhoods. Effective immediately, HUD will classify a property as “foreclosed” if the owner is at least 60 days behind on the mortgage or is 90 days or more delinquent on tax payments. HUD is also expanding the definition of an “abandoned” property to include homes where no mortgage or tax payments have been made for at least 90 days. A property is also abandoned if a code enforcement inspection has determined that the property is uninhabitable and the owner has not taken corrective action within 90 days.
HUD says these expanded definitions will increase the reach of NSP by allowing more properties to qualify, remove existing barriers caused by market conditions, and help state and local grantees to meet a Congressional requirement that they obligate all of their NSP1 funding by September of this year.
More information is available on HUD’s Web site.
3 comments:
This guidebook to NSP includes the April 2010 updates and changes to the program:
https://www.createspace.com/3444664
Does it include funds to help to tear down homes that have been determined to uninhabitable "abandoned/blighted" properties that scar neighborhood as well?
Yes, it does, although the second round of Neighborhood Stabilizaton Program Funding caps demolition activities at 10% of the grant award. Communities who applied for NSP2 funds were permitted to request exceptions to this limit if they could justify that more demolition was needed to stabilize their target areas. Both rounds of the program allow demolition of blighted structures under Eligible Use D. You can find more information on the eligible uses of Neighborhood Stabilization Program funding here:
http://hudnsphelp.info/index.cfm?do=viewAllResourcesByTopic&topicid=14&pTopicID=1.
Sarah Greenberg
Manager, Community Stabilization
NeighborWorks America
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