NEIGHBORHOOD STABILIZATION PROGRAM
HUD's new Neighborhood Stabilization Program (NSP) will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state and certain local communities to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.
Eligible participants must propose to acquire a minimum of ten (10) properties.
Properties must have been marketed for at least 60 days
The Purchase Price for the eligible property shall be the appraised value, as determined by HUD, minus the applicable discounts specified below.
Properties with appraised values greater than $100,000 shall receive a ten percent (10%) discount of the appraised value of the property
Properties with values of $100,000 or less shall receive a fifty percent (50%) discount of the appraised value of the property.
Properties with values of $20,000 or less , and considered “demolition” properties, shall be sold for one hundred dollars ($100).
Participants purchasing fifty (50) or more properties will receive an additional five percent (5%) discount. Properties will be available simultaneously to both local governments and the general public. If an owner-occupant purchaser submits a bid that is greater than the local government’s discounted price, the owner-occupant will be given preference in bid acceptance.
After identifying properties of interest, local governments may submit an electronic bid on the website. In order to do so, the local government entity must have a Name Address Identifier (NAID). To obtain a NAID eligible participants must submit a completed SAMS 1111 form which may be obtained at: http://www.hud.gov/offices/adm/hudclips/forms/files/1111sams.pdf as well as proof of the entity’s tax identification number to the Homeownership Center for your area.
For more information go to HUD’s website: