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NYC Department of Housing Preservation & Development

Neighborhood Stabilization Program

NSP3

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:
  

  • 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.

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.

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.

            > Quarter 1, 2014 (PDF)

            > Quarter 4, 2013 (PDF)

            > Quarter 3, 2013 (PDF)

            > Quarter 2, 2013 (PDF)

            > Quarter 1, 2013 (PDF)

            > Quarter 4, 2012 (PDF)

            > Quarter 3, 2012 (PDF)

            > Quarter 2, 2012 (PDF)

            > Quarter 1, 2012  (PDF)

            > Quarter 4, 2011 (PDF)

            > Quarter 3, 2011 (PDF)

            > Quarter 2, 2011 (PDF)

            > 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)

The City of New York’s Consolidated Plan-related reports can be viewed on the Department of City Planning’s website at: http://www.nyc.gov/html/dcp/html/resource/consol.shtml#cp

NSP2

The Neighborhood Stabilization Program – Round 2 (NSP-2) was created as part of the American Recovery and Reinvestment Act of 2009 (The Stimulus Act) under Division A, Title XII.  The total available NSP-2 funding under this act was $2 billion, to be allocated on a competitive basis, unlike NSP-1 and NSP-3 grants which were federally allocated on a formulaic basis. HPD applied for funds and received $20,059,466. HPD conducted a competitive process to select partners to use NSP-2 grant funds in the pursuit of local and national objectives. Among other restrictions, NSP-2 grants need to be spent on developments in certain specific areas of the city, as defined by levels of foreclosure activity and vacancy rates. Ultimately developers were chosen and various activities were commenced in efforts to transition vacant, foreclosed, and abandoned properties into affordable housing.

Click here  to read the press release announcing HPD’s NSP-2 grant award.
Click here  to download NYC’s complete NSP2 application (PDF)

HPD is proposing that the NSP-2 action plan be revised. A description of this proposal revision and program contact information can be found here.

HPD tracks its progress in using NSP-2 funds to promote affordable housing development and community support on a quarterly basis. These reports also detail various programs which are funded under NSP-2, such as the Homebuyer Program detailed above. Prior quarter reports are found below:

            > Quarter 1, 2014 (PDF)

            > Quarter 4, 2013 (PDF)

            > Quarter 3, 2013 (PDF)

            > Quarter 2, 2013 (PDF)

            > Quarter 1, 2013 (PDF)

            > Quarter 4, 2012 (PDF)

            > Quarter 3, 2012 (PDF)

            > Quarter 2, 2012 (PDF)

            > Quarter 1, 2012 (PDF)

            > Quarter 4, 2011 (PDF)

            > Quarter 3, 2011 (PDF)

            > Quarter 2, 2011 (PDF)

            > Quarter 1, 2011 (PDF)

            > Quarter 4, 2010 (PDF)

            > Quarter 3, 2010 (PDF)

            > Quarter 2, 2010 (PDF)

            > Quarter 1, 2010 (PDF)

NSP1 

Please note that HPD is proposing an amendment to its NSP1 action plan. Please see this link for more detail.

The Neighborhood Stabilization Program (NSP) was created by Congress under the Housing and Economic Recovery Act of 2008 (HERA) 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 received $24,257,740 in NSP funds which must be used to undertake several or all of the following eligible activities:
- 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.

New York City’s Neighborhood Stabilization Program (NSP1) has two strategies: the Owner-Abandoned Strategy and the Real Estate Owned Program (REO).  Both programs are targeted to the areas most affected by the foreclosure crisis in NYC.

1. Owner-Abandoned Strategy

  • 25% of NSP funds will assist with the acquisition and rehabilitation of multifamily buildings in foreclosure where the owner has abandoned the property and is not providing adequate repairs, management, and general caretaking.  
  • These units are part of HPD’s mandatory set-aside for households earning up to 50% of AMI.  
  • HPD will use NSP money to fund the acquisition and rehabilitation of abandoned and foreclosed properties, thereby also assisting renters affected by the subprime and foreclosure crisis. 
  • Buildings acquired under the owner-abandoned strategy will be concentrated in the top 20 neighborhoods with the highest number of foreclosure auction listings and other risk factors as defined by HUD.

2. REO Program

  • 75% of NSP funds will partially fund a credit facility established to facilitate acquisition and rehabilitation of REO homes by an affiliate of a local non-profit, Restored Homes (RH), with HPD oversight.  
  • RH was set up to perform a similar function for HUD foreclosures in the Asset Control Area Program (ACA) and Dollar Home Program. 
  • The organization has been successfully acquiring and rehabilitating homes through these programs with oversight from HPD.  The REO Strategy is based on this tested model. 
  • REO properties will be concentrated in the top 13 neighborhoods with the highest number of foreclosure auction listings and other risk factors as defined by HUD. 
  • Using a combination of City, State, Federal and private funds, Restored Homes will acquire and rehabilitate foreclosed homes and sell them at prices affordable to qualified homebuyers earning less than 120% of AMI.

For both the ACA and REO programs, General Contractors, Architects, and Community Partners can reply to a Request for Qualifications (RFQ) by going to the Restored Homes RFQ Website. 

Most Affected Areas as Defined by HUD and HPD

(Top 13 – REO, Top 20 – Owner Abandoned)

1. Jamaica, Queens
2. Bellerose/Rosedale, Queens
3. North Shore, Staten Island
4. Howard Beach/S. Ozone Park, Queens
5. Kew Gardens/Woodhaven, Queens
6. Rockaways, Queens
7. South Shore, Staten Island
8. Bedford Stuyvesant, Brooklyn
9. Jackson Heights, Queens
10. Williamsbridge/Baychester, Bronx
11. East New York/Starrett City, Brooklyn
12. Flatlands/Canarsie, Brooklyn
13. Mid-Island, Staten Island
               ***
14. East Flatbush, Brooklyn
15. Hillcrest/Fresh Meadows, Queens
16. Flushing/Whitestone, Queens
17. Soundview/Parkchester, Bronx
18. Middle Village/Ridgewood, Queens
19. Bushwick, Brooklyn
20. Morrisania/East Tremont, Bronx

NYC HPD administers the Program for the City.  The City of New York's 2008 Consolidated Plan: Addendum – Neighborhood Stabilization Program serves as the City of New York’s official 2008 application to the U.S. Department of Housing and Urban Development (HUD) Office of Community Planning and Development for the Community Development Block Grant (CDBG) formula entitlement program sub grant: Neighborhood Stabilization Program (NSP). 
 
 
To download the City’s addendum, click here:
            > NSP ConPlan Amendment 12.01.08

            > NSP 1 Substantial Amendment to the Consolidated Plan – Revised 8/2010

To view SF242, click here:
            > SF424

Performance reporting measures will be available for public review during the course of the program.

            > Quarter 1, 2014 (PDF)

            > Quarter 4, 2013 (PDF)

            > Quarter 3, 2013 (PDF)

            > Quarter 2, 2013 (PDF)

            > Quarter 1, 2013 (PDF)

            > Quarter 4, 2012 (PDF)

            > Quarter 3, 2012 (PDF)

            > Quarter 2, 2012 (PDF)

            > Quarter 1, 2012 (PDF)

            > Quarter 4, 2011 (PDF)

            > Quarter 3, 2011 (PDF)

            > Quarter 2, 2011 (PDF)

            > Quarter 1, 2011 (PDF)

            > Quarter 4, 2010 (PDF)

            > Quarter 3, 2010 (PDF)

            > Quarter 2, 2010 (PDF)

            > Quarter 1, 2010 (PDF)

            > Quarter 4, 2009 (PDF)

            > Quarter 3, 2009 (PDF)




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