Regulations

Neighborhood Stabilization Program (NSP) funds may be used in the following ways:

  • USE A—Financing Mechanisms: 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.
  • USE B—Purchase and Rehabilitation of Abandoned or Foreclosed Homes: 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.
  • USE C—Land Banks: Establish and operate land banks for foreclosed homes and residential properties
  • USE D—Demolition of Blighted Structures
  • USE E—Redevelopment of Demolished or Vacant Properties

In addition:

  • Funding must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.
  • At least 25 percent of the funds must be used to purchase and redevelop properties to house individuals or families whose incomes do not exceed 50 percent of the area median income.

 HUD Neighborhood Stabilization Program (NSP) Regulations