Neighborhood Stabilization Program
The Department of Housing and Urban Development has allocated $1 billion nation-wide in funds to state and local governments to purchase abandoned and foreclosed homes and residential property through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. This is considered the third round of funding of the Neighborhood Stabilization Program (NSP).
NSP3 funds must be used for the acquisition and rehabilitation of abandoned, foreclosed residential properties which are located in a targeted neighborhood of greatest need. The grant requires that a minimum 25% of the funds must be used to assist very-low income households earning at or below 50 % of the area median income (“AMI”). All acquisitions funded by NSP3 must meet the discount requirement of one percent (1%) below appraised value. A requirement of the grant is that 50% of funds must be expended within two years, and the balance of funds within 3 years. The timeliness requirement begins upon the approval of the County’s NSP3 Plan and HUD’s subsequent execution of the County’s NSP3 Agreement.
The County of Imperial submitted an abbreviated plan to secure $1,708,780.00 for the implementation of the NSP round 3. The abbreviated plan was approved by the County of Imperial Board of Supervisors on March 30, 2011. Later, the county submitted an amended abbreviated plan to the Board of Supervisors on 05-24-2011.
Activities allowable under the NSP3 program are:
For the acquisition and Rehabilitation (Affordable Housing). NSP3 funds will be utilized for the development and/or rehabilitation of vacant and/or abandoned residential, commercial and/or industrial properties for the purpose of providing permanent affordable housing, which includes the 25% set-aside for households below the 50% Area Median Income (AMI).
Establishment of a First Time Home Buyer Loan Program to assist eligible families to purchase foreclosed residential homes hat have been recovered under the NSP program.
The County has approved three amendments to the Abbreviated Plan in order to add eligible target areas. Persons interested in this program should contact our office for eligibility criteria and to be placed on the wait list.