2.0 HRSR 12-15-2008 - Laserfiche WebLink

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Minnesota Housing releases Neighborhood Stabilization Program fund eligibility Page 2 of 3 . NSP entitlement areas (Anoka and Hennepin Counties and the cities of Minneapolis and St. Paul), which will receive a maximum distribution in addition to the allocation they will receive directly from Housing and Urban Development (HUD). . High-need zip codes outside the NSP entitlement areas. . Communities in one of Minnesota's 23 high-need counties. . High-need areas for which maximum distributions are assigned for Community Revitalization projects. The first funding round has four set-asides, one non-competitive pool, and three competitive pools. The one non-competitive pool is for the NSP-designated entitlement areas. The first competitive pool is for high-need zip codes outside the NSP entitlement areas. The other two competitive pools are for the high-need counties with one pool for the Twin Cities Metro Area and the other for greater Minnesota. Download ..a..._l~tit of_c(igible communtt~es and...p....ool fu...n:d am...ounts (pdt), Eligible uses and activities HERA established five eligible uses for NSP funds, including: . Financing mechanism for purchase and redevelopment of foreclosed homes; . Purchase and rehabilitation of properties abandoned or foreclosed upon; . Land banking; . Demolition of blighted structures; . Redevelopment of demolished or vacant properties. The funds must be used within 18 months of receipt and to assist individuals and families with incomes not exceeding 120 percent of area median income. Improvements to increase energy efficiency or conservation or to provide a renewable energy source or sources for the homes or properties are also eligible. Some activities are ineligible for NSP funds. Generally, if an activity is ineligible under CDBG, it is ineligible under NSP. Foreclosure prevention, demolition ofnon-blighted structures, purchase of properties not abandoned or foreclosed upon, and redevelopment for commercial purposes are all ineligible for NSP funding. Application requirements Local governments must provide sufficient detail for MHFA to evaluate the application. Applicants must identify how foreclosures and subprime lending has adversely affected their community and how the requested funding will address the problems. Aline-item budget detailing the cost of the activity should be included. The applications should also identify: . Targeted neighborhoods or blocks; . Activities to be undertaken and anticipated outcomes; . Neighborhood improvement efforts; . Partnerships; . Feasibility and degree of readiness; . Income targeting; . Continued affordability; . Timeframes. Funds will be awarded based on how applicants can demonstrate that the funding is part of a comprehensive plan; whether the funds can be used in the 18-month timeline required by HERA; how applicants will leverage other resources; and whether the identified outcomes are achievable. http://web.lmc.org/bulletin/story.cfin?id=2160&title_id=1 12/10/2008