Neighborhood Stabilization Program 3NSP3
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 provided an additional $1 billion for the Neighborhood Stabilization Program (NSP) that was originally established under the Housing and Economic Recovery Act of 2008. HUD will award grants to 270 states and selected local governments to mitigate the negative impact of the nation's economic decline and housing market collapse and to stabilize and revitalize communities/areas hit the hardest. The regulations for NSP3 can be cited at 75 FR 64322.
State and Local NSP Allocations
NSP3 funds were allocated by a formula based on the number of foreclosures and vacancies in the 20 percent of U.S. neighborhoods (Census Tracts) with the highest rates of homes financed by a subprime mortgage, are delinquent, or are in foreclosure. The minimum grant amount was $1 million for non-state grantees and the basic allocation is adjusted to ensure that every state receives a minimum of $5 million. The net result is that these funds are highly targeted to communities with the most severe neighborhood problems associated with the foreclosure crisis.To find information on individual NSP grantees, including action plans, quarterly performance reports, and contact information click here.
Target Area Mapping Widget
This tool assists NSP3 applicants to prepare data to submit with their grant application by allowing applicants to draw the exact location of their target neighborhood. The tool will then calculate the number of housing units, Neighborhood NSP3 Score, and State Minimum threshold NSP3 score of the area drawn, and produce a report that the grantee will receive via email within 24 hours. The report will contain all necessary data for the NSP3 application, along with information HUD can use to confirm the intended program area. The applicant should then submit this document with their grant application. This report also provides local housing market and economic data for the target area that can help guide grantees' NSP3 program development and implementation. Data downloadable by state showing the foreclosure risk score, LMMI area benefit, address vacancy, and other information for each block group can be found here.
Under NSP3, grantees have 2 years from the date HUD signed their grant agreements to expend 50% these funds and 3 year to expend an amount equal to these allocations.
If you would like additional information on the program please use this form to contact a HUD NSP Representative.