NEIGHBORHOOD
STABILIZATION
PROGRAM
AMENDMENT
CITY COUNCIL MEETING
APRIL 17, 2023
NEIGHBORHOOD STABILIZATION PROGRAM
(NSP)
Purpose
• The purpose of assisting
communities with high
rates of abandoned and
foreclosed homes due
to 2008 recession.
NSP1 Grant
• Received in 2008.
• Closing NSP1 grant.
• NSP program income is
$120,000.
PROPERTY TYPES
• Only 3 property types can receive NSP assistance:
1. Foreclosed Properties
2. Abandoned Properties
3. Development of Vacant Land
NSP ELIGIBLE
ACTIVITIES
Financing Mechanisms
For purchase and redevelopment
of foreclosed homes and
residential properties.
Acquisition and
Rehabilitation
Purchase and rehabilitate homes
and residential properties
abandoned or foreclosed.
Land Banking Establish land banks for
foreclosed homes.
Demolition of Blighted
Structures
Demolish blighted structures to
mitigate decline of surrounding
properties.
Redevelop demolished or vacant properties
NSP1 PROPOSED AMENDMENT
• $120,000 NSP Program Income
• Proposed Activity
• First time homebuyer assistance for 5 single-family homes constructed on NW 5th Ave. and N Court St. with HOME funds. • Loan T erms
• 30-year deferred at 0% interest.
NSP1
PROPOSED AMENDMENT BENEFITS
Secondary financing for
NW 5th Ave. Project
• Secondary financing needed
due to high housing market.
• Not sold within 9 months
of construction, must be
rented low-income tenant.
Closeout of 2008
NSP1 Grant
• Only 3 eligible types:
• Foreclosed properties
• Abandoned properties
• Vacant land.
ACTION TONIGHT
• Staff Recommends:
• Conduct a Public Hearing.
• Motion to approve and appropriate funds for the FY 2022-23 NSP1 Amendment.
• Motion to enter into all contracts as listed in the FY 2022-23 NSP1 Amendment.
• Authorize submission to HUD.
NSP INELIGIBLE ACTIVITIES
Foreclosure prevention
• Including refinancing
mortgages, paying back taxes
or mortgage payments.
Demolition of non-
blight structures
Any NSP1 activity that
is not within the
approved
neighborhood/target
area.