The U.S. Department of Housing and Urban Development's (HUD) Neighborhood Stabilization Program (NSP) is a component of the Community Development Block Grant (CDBG) program, and provides emergency assistance to state and local governments to acquire and redevelop foreclosed or abandoned properties that might otherwise become sources of abandonment and blight within their communities.
HUD awarded portions of the original $3.9 billion Neighborhood Stabilization Program to a total of 309 grantees, including every state and many local governments. The City of Grand Rapids received $6,187,686 to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of neighboring home values.
The City is actively working with nine nonprofit and private development partners to accomplish this task. To see a list of the pre-qualified NSP1 Developers, click here (pdf).
The NSP program is authorized under Title III of the Housing and Economic Recovery Act of 2008. To read the federal notice, click here (pdf). To read the City of Grand Rapids Amendment to the FY 2009 Housing & Community Development Annual Action Plan, please see the NSP Final Amendment (pdf). This explains the City's NSP Program, including descriptions of the target areas selected.
NSP2 is a term referencing an additional $1.9 billion in NSP funds authorized by Title XII of Division A of the American Recovery and Reinvestment Act of 2009 (the Recovery Act). This second phase of the NSP provides grants to states, local governments, nonprofits, and a consortium of public and/or private nonprofit entities on a competitive basis.
The Michigan State Housing Development Authority (MSHDA) submitted a proposal to HUD for $290 million on behalf of the Michigan NSP2 Consortium, composed of 12 cities and eight partner land banks. For more information about the MSHDA NSP2 Program and Consortium, please visit the MSHDA Neighborhood Stabilization Program (NSP) web site.
MSHDA was awarded $223.8 million. The City of Grand Rapids, a member of the Michigan NSP2 Consortium, received $15,003,476 of this allocation. To read the City of Grand Rapids MSHDA NSP2 Consortium Submission, click here (pdf).
To view the City of Grand Rapids target area map for NSP2, click here (pdf).
To view a list of the current pre-qualified NSP2 Developers, click here (pdf).
Neighborhood Stabilization Program 3 (NSP3) funds were authorized in the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. States and local governments will receive a total of $970 million to continue to assist in the redevelopment of abandoned and foreclosed residential properties. Funds were allocated to states and units of local government under a formula developed by HUD. The City of Grand Rapids was allocated $1,378,788 under this formula.
To read the City of Grand Rapids Amendment to the FY 2010 Housing and Community Development Annual Action Plan, please see the NSP3 Plan Amendment
(pdf). This explains the City's NSP3 program, including descriptions of activities and the target area selected.