NSP OVERVIEW - and the mission of Homes to Owners
The Neighborhood Stabilization Program (NSP) was established by the federal government under the Housing and Economic Recovery Act (HERA) of 2008 for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the NSP program will both provide affordable housing to working families and generate a positive economic impact in communities throughout America.
NSP funds may be used for activities which include, but are not limited to: establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties; purchase and rehabilitate homes and residential properties abandoned or foreclosed; demolish blighted structures; and redevelop demolished or vacant properties.
Note that homebuyers cannot receive direct NSP assistance directly from HUD.
The original funding of $3.92 billion for the Neighborhood Stabilization Program in the 2008 HERA legislation, often referred to as NSP1, was allocated on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The H2O program was created by HAMC and MCCD with NSP1 funding to address housing and community redevelopment needs in specific communities in Maricopa County. In 2009 an additional $1.93 billion was added to the Neighborhood Stabilization Program by the new administration under the American Recovery and Reinvestment Act (ARRA). This funding, known as NSP2, retains the basic objectives and eligiblility rules of the original program. Under NSP2, however, grants will be awarded to states, local governments, nonprofits and consortiums of nonprofit entities on a competitive basis. The H2O program group has submitted a redevelopment project to HUD for NSP2 funding.
The mission of Homes to Owners is to invest Maricopa County's share of NSP funds to provide affordable homes, revitalize neighborhoods and create jobs. The H2O program will focus on those areas hardest hit by the economic downturn and housing crisis. NSP funds will provide affordable, sustainable homes for those who would not otherwise be able to purchase a green home. By partnering with local governments and community groups, H2O is working to improve the quality of life for Arizona residents. H2O is purchasing foreclosed or abandoned homes in Goodyear, Buckeye, El Mirage, and Tolleson neighborhoods and rehabilitating them. These homes will be updated to meet or exceed Energy Star standards set for the Arizona region, and will reduce energy usage, water usage, and carbon footprint.
HUD Overview of NSP
Here is an another simple, graphical explanation of purpose and operation of the Neighborhood Stabilization Program works, taken from documents on HUD's own website.
