5. HRSR 03-02-2009 - Laserfiche WebLink

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Neighborhood Stabilization Program (NSP) Neighborhood Stabilization Program (NSP) The U.S. Department of Housing and Urban Development's new Neighborhood Stabilization Program (NSP) provides targeted emergency assistance to states and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight, Minnesota Housing is the grantee for the state in the amount of $38.8 million. Minnesota Housing's Funding Applications are due January 28, 2009. Eligible Applicants Local units of government experienced in administering CDBG funding are eligible applicants. Local units of government include cities, HRAs, EDAs, CDAs, PHAs and counties. Only local units of government operating in the zip codes ar counties identified as areas of greatest need may apply for funds. For cities within NSP entitlement counties (Anoka, Dakota, and Hennepin, with the exception of the city of Minneapolis), the entitlement county is the eligible applicant. For local units of government within the NSP entitlement cities (Minneapolis and St. Paul), the entitlement city is the eligible applicant. Local units of government who have contracted with other entities to administer CDBG funds and do not have direct experience administering CDBG funds must contract with an experienced CDBG administrator to administer the NSP funds. Minnesota Housing will sub grant NSP funds to eligible applicants. The sub grantees may accept applications to undertake eligible activities and/or may directly undertake eligible activities. Sub grantees are encouraged to work with experienced housing developers and property management companies and other local units of government in developing their application for state NSP funds. Minnesota Housing anticipates sub granting NSP funds to eligible local units of government. Minnesota Housing collaborating partners in the NSP program are the Department of Employment and Economic Development, Metropolitan Council, Department of Commerce, Family Housing Fund, and the Greater Minnesota Housing Fund. Areas of Greatest Need Minnesota Housing has targeted funds to give priority emphasis and consideration to areas with greatest need identified through a funding formula: • Areas with the greatest percentage of home foreclosures; • Areas with the highest percentage of homes financed by a subprime mortgage related loan; and • Areas, identified as likely to face a significant rise in the rate of home foreclosures. NSP Fund Uses • Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties • Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed, in order to sell, rent, or redevelop Page 1 of 3 http://www.mnhousing.gov/resources/apply/MHFA_007433.aspx?print=true 2/24/2009