The City of New York has substantially amended its 2010 Consolidated Plan. The document now includes an addendum: Neighborhood Stabilization Program-Round 3 (NSP-3) funded activities.
The Neighborhood Stabilization Program-Round 3 (NSP-3) was created by Congress under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) regulation Sec. 1497(a) to provide grants to States and localities for the redevelopment of foreclosed and abandoned homes and residential properties. The grants are intended to prevent further declines in neighborhoods most severely impacted by foreclosures.
The City of New York is expected to receive $9,787,800 in NSP-3 funds which must be used to undertake any or all of the following eligible activities:
According to the Dodd-Frank Act, NSP-3 is to be considered a subgrant of the United States Department of Housing and Urban Development’s (HUD’s) Community Development Block Grant (CDBG) entitlement program, and therefore bound to HUD’s Consolidated Plan regulations. Under existing Consolidated Plan citizen participation regulations, substantial amendments to an approved Plan are required to undergo a 30-day comment period. However, in order to expedite the localities receiving the funds, Congress has waived this regulation and requires the Program to undergo only a 15-day public review period instead.
- establish financing mechanisms for purchase and redevelopment of foreclosed upon homes and residential properties, including such mechanisms as soft-seconds, loan loss reserves, and shared-equity loans for low- and moderate-income homebuyers;
- purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed upon, in order to sell, rent, or redevelop such homes and properties;
- establish land banks for homes that have been foreclosed upon;
- demolish blighted structures; and
- redevelop demolished or vacant properties.
The Public Comment period began Thursday, February 10 and ended Thursday, February 24, 2011.
Comments received at the end of the comment period (close of business) were to be summarized and the City’s responses incorporated into the 2010 Consolidated Plan amendment addendum for submission to HUD. However, no public comments were received during the comment period.
According to NSP guidelines, localities were required to submit their amendments to HUD no later than March 1, 2011 in order to be eligible to receive their respective allocation. The City of New York submitted its NSP amendment and additional federally-required materials on March 1, 2011.
Amended 2010 Consolidated Plan Addendum - Neighborhood Stabilization Program-Round 3 (Submission version) (1.3 mb)
Standard Form-424 (SF-424) (Application for federal NSP3 funds) (0.1 mb)
Written comments and any questions regarding the amended 2010 Consolidated Plan: Addendum - Neighborhood Stabilization Program-Round 3 (NSP-3) may be directed to:
Director of Distressed Asset Finance
NYC Department of Housing Preservation and Development
100 Gold Street, Room 9S-7, New York, NY 10038