Neighborhood Stabilization Overview
New Hampshire has received two NSP awards from HUD. In March 2009, CDFA received $19.6 million in the first round of the Neighborhood Stabilization Program (NSP1). An additional $5 million in funds was awarded to NH in April 2011 during the third round of NSP (NSP3).*
NSP is a component of the CDBG program and generally follows its requirements. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008 and the Dodd-Frank Act, signed into law in July of 2010.
In June 2009, CDFA awarded $18.5 million to five awardees: the City of Berlin; Harbor Homes, Inc.; the City of Manchester; the City of Nashua; and the City of Rochester. As these five awardees sell rehabilitated and newly constructed properties to low-, moderate-, and middle-income homebuyers, earning up to 120% of Area Median Income, CDFA will collect these earnings and issue additional awards.
The results for NSP1 have been outstanding. In many of the areas affected, property values and residency rates have increased, while foreclosures, tax liens, and crime rates have dropped.
In September 2010, HUD announced that NH and CDFA would receive an additional allocation of $5 million in the third round of NSP funding. Manchester and Berlin were awarded $4.7 million in July of 2011 to continue the work which began under NSP1.
Eligible Activities for Use of Funds
New Hampshire's NSP allocation can be used for the following 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;
- Demolish blighted structures; and/or
- Redevelop demolished or vacant properties.
*New Hampshire did not apply for funding during NSP's second round (NSP2) as that particular round was focused primarily on urban neighborhoods in large metropolitan cities.
The CDAC will consider the applications for the first round of Housing and Public Facilities grants.
The Board of Directors of CDFA will hold its monthly meeting
Applications for organizations invited to apply for CDFA tax credits must be submitted by close of business today.
Applications for communities interested in CDBG planning grants must be submitted by close of business today.
This is the required workshop for CDBG awardees to learn how to manage their grants