The U.S. Department of Housing and Urban Development (HUD) established The Neighborhood Stabilization Program (NSP) for the purpose of stabilizing communities through the purchase and redevelopment of foreclosed and abandoned homes and residential properties. NSP1 provides grants to all states and selected local governments on a formula basis. NSP2, funded by the Recovery Act, provides competitive grants to states, local governments, nonprofits and a consortium of nonprofit entities. The Recovery Act also allocates $50 million for Neighborhood Stabilization Program Technical Assistance (NSP-TA) grants to national and local technical assistance providers to support recipients of NSP grants.
NSP2: HUD will allocate NSP2 Recovery Act funds on a competitive basis. Eligible grantees include states, units of general local government, nonprofit entities, and consortia of nonprofit entities. Any lead applicant may submit a proposal in partnership with one or more for-profit organization. HUD will narrow the field of qualified geographies based on a calculation of need.
NSP-TA: Of the $50 million in competitive NSP-TA grants for technical assistance to HUD development program grantees, $11.5 million is available for local TA activities and the remaining $38.5 million is available for national and regional TA activities. Eligible entities are states, units of general local government, non-profit entities, for-profit entities, and a consortium of organizations. HUD will select NSP-TA providers on the basis of capacity and experience in: 1) undertaking the eligible TA activities;
2) the ability to manage and expend the requested level of funds within the three-year performance period; and
3) leveraging resources by using existing materials and limiting duplicative efforts. Activities eligible for funding must address the following TA priorities for HUD’s community development programs grantees and sub recipients:
Designing and implementing NSP activities,
Developing strategies to serve low-income households,
Adopting green development principles,
Improving performance and reporting techniques on NSP activities,
Developing and delivering Disaster Recovery Grant Reporting (DRGR) system training.