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The Housing Alliance has been working to ensure that we and our partners around the state fully understand and are able to participate in the implementation of the Federal Housing and Economic Recovery Act (HERA) of 2008. To that end, we hosted two briefing sessions on the bill with state and national officials. Check out the results of these meetings, along with a growing list of resources that break down what you NEED to know on NSP funding.
Housing Alliance Memo on NSP Plans for PA w/results from DCED meeting.
HUD has allocated a total of $3.92 billion in Neighborhood Stabilization Program (NSP) funds to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures. The funding is provided through HUD's Community Development Block Grant (CDBG) Program under the Housing and Economic Recovery Act of 2008.
Pennsylvania's allocations are as follows:
PA State - $59,631,318
Allegheny County - $5,524,950
Allentown - $2,113,456
Philadelphia - $16,832,873
Pittsburgh - $2,002,958
York County - $2,017,253
What you should know/do ASAP if you are interested in applying for NSP funds:
These funds must be used for the acquisition, rehabilitation and use of foreclosed and abandoned properties benefiting primarily households at or below 120%AMI. 25% of the funds must be used for people at 50% of AMI or below. Below market value must be paid for all acquisitions. The specific regulations are available on the HUD website. (See the link at the end of this article.)
This is a “needs based” program – but not the needs we commonly think of. The statutory formula is based on numbers of foreclosures, defaults, and subprime loans. If you are interested in trying to get funds for your community, it is imperative that you go to the HUD website to the CENSUS TRACT level data on eligibility to see where the census tracts you serve fit in.
There is no known summary that ranks PA’s 14,294 census tracts. If you are looking at your census tracts, it is useful to read HUD’s methodology first to understand where the numbers come from and what they mean. Again, visit the HUD website, via the link below.
If a census tract has an “Estimated foreclosure abandonment risk score” on the HUD index of 7, 8, 9 or 10 it is likely it will meet the criteria of need for the DCED application.
DCED is also planning to look at areas that have extremely high concentrations of subprime loans and foreclosures even if they do not meet HUD’s income and vacancy rate criteria. Look for final definitions in the plan, but do not wait. Start by analyzing the census tracts immediately.
Deadlines: Note that HUD has expedited the usual process for CDBG implementation plans for this funding. - Each NSP grantee receiving an allocation of NSP funds must submit an action plan amendment describing the intended use of funds by December 1, 2008
- The proposed action plan amendment must be published via the usual methods and on the Internet for no less than 15 calendar days of public comment. This gives DCED until November 15.
- All funds must be used within the statutory deadline of 18 months from receipt of the funds.
For more details, please see the website links and document downloads below. They include:- Neighborhood Stabilization Program Regulations De-mystified, by Capital Access (PowerPoint)
- A good outline of the program, from HUD, in PowerPoint
- a full press release from HUD
- HUD's Notice of Allocations, Application Procedures, Regulatory Waivers Granted to and Alternative Requirements for Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes Grantees under the Housing and Economic Recovery Act, 2008
- a link to the HUD website for downloading Excel spreadsheets on state and local allocations
- NEW: How to Spend $3.92 Billion: Stabilizing Neighborhoods by Addressing Foreclosed and Abandoned Properties
- NEW: Housing Alliance Memo on NSP meeting with DCED
- NEW: HUD flyer on NSP
- NEW: HUD NSP Data Mapped on PolicyMap
Note: HUD's website on NSP is actually very easy to use and is an excellent resource. It includes a Q&A that is very helpful in addition to background information on how HUD defines need, administrative requirements for the program and eligible uses for the funds with applicable definitions. |
