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NCDFA is the administrator of New Hampshire’s $19.6 million in Neighborhood Stabilization Program Funds. The program is designed to address the effects of abandoned and foreclosed properties in certain communities and neighborhoods in order to put them back into service for the benefit of rehabilitation and extended affordability.
Along with other states, New Hampshire submitted a comprehensive Action Plan to the US Department of Housing and Urban Development (HUD) that provides details of how it will administer NSP activities in New Hampshire. The plan, which was drafted by a broad coalition of community representatives, was approved by HUD in January of 2009 and signed the agreement with CDFA in March of 2009. CDFA now has until September 9, 2010 to commit all NSP funds to successful applicants. At the June 4, 2009, meeting of the CDBG Advisory Committee, they approved $18.03 million in NSP funds to go to projects in Berlin, Manchester, Nashua, and Rochester. The NSP grantees will then have until March 9, 2013 to complete their projects.
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.
Full activity descriptions can be found in the Action Plan.
Tier 1 and Tier 2 Communities
As a result of 2008 statistical data, New Hampshire communities with the highest rates of foreclosures, subprime loans, and likelihood of future high rates of foreclosures were identified as Tier 1 and Tier 2 groups. The Tier 1 communities with the highest ratings were given preference for applying for the funds. Tier 1 communities include Berlin, Derry, Manchester, Nashua, and Rochester. Tier 2 communities are eligible if program income is received from Tier 1 communities. Tier 2 communities include Barnstead, Claremont, Farmington, Franklin, Hillsborough, Laconia, Newport, Ossipee, Pittsfield, Raymond, Wakefield, and Whitefield.
Municipalities and public and private entities in both Tier 1 and 2 communities were invited to submit NSP Pre-Applications by December 19, 2008. Eighteen pre-applications were received requesting a total of over $71 million. An resource panel of housing, energy efficiency, community development, and other funders were convened and met with Tier 1 pre-applicants to help better identify the needs and to encourage community collaboration. May 1, 2009 was the final application deadline for Tier 1 applicants. NSP funding decisions were made at the June 4, 2009, CDBG Advisory Committee. $18.03 million in NSP funds were awarded to projects in Berlin, Manchester, Nashua, and Rochester. Their recommendations will then go to the Governor and Executive Council for final approval. Recycled program funds from successful Tier 1 applicants will be available to Tier 2 communities in mid 2010. CDFA must commit all NSP funding by September 9, 2010. All applicants that receive NSP funds must complete their projects by March 9, 2013.
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Last updated July 8, 2009
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