Neighborhood Stabilization Program Grants
HUD awarded grants to a total of 309 grantees including the 55 states and territories and selected local governments to stabilize communities hardest hit by foreclosures and delinquencies. The regulations for NSP1 grantees are noted at 73 FR 58330. Revisions to these regulations are noted in the NSP Bridge Notice (Coming Soon).
State and Local NSP Allocations
NSP1 grantees were selected on the basis of statutory objectives and a greatest need formula developed by HUD. Each of the 50 states and Puerto Rico received a minimum award of $19.6 million. Insular areas and the District of Columbia were also stipulated to receive a direct award. The other grantees that received direct awards were selected on the basis greatest need factors (e.g. highest rate of foreclosures, subprime mortgages, abandoned homes, etc.) with a minimum grant threshold of approximately $2 million. To find information on individual NSP grantees, including action plans, quarterly performance reports, and contact information click here.
Obligation Expenditure Timelines
Under NSP1, grantees have 18 months from the date HUD signed their grant agreements to obligate these funds and four years to expend allocations an amount equal to these allocations. HUD expects that grantees will have contracts signed or, at a minimum, made written offers for properties within 18 months. Options or other non-binding instruments are not acceptable.
NSP grantees may use up to 10% of their allocations for administrative and planning costs. In addition, up to 10% of the program income generated from NSP funded activities may be used for administrative and planning costs. For all grantees including states, the 10% limitation applies to the grant as a whole.
The Disaster Recovery Grant Reporting (DRGR) system was developed by HUD for Disaster Recovery program management, but it is being utilized by NSP for reporting purposes. Data from the system is used by HUD staff to review activities funded under NSP and for required quarterly reports to Congress.
If you would like additional information on the program please use this form to contact a HUD NSP Representative.