Neighborhood Stabilization Program
NSP Background
The United States Congress created the Neighborhood Stabilization Program (NSP) in 2008 to help cities, counties, and states stabilize neighborhoods throughout the nation recover from housing foreclosure and abandonment. The program is administered by the United States Department of Housing and Urban Development (HUD). The State of West Virginia received a total allocation of $26.5 million in NSP funding, after which the state created more than 200 units of affordable housing.
Benefits of the NSP
Their priority is the purchase and redevelopment of foreclosed and abandoned property to benefit low and moderate income individuals. The program includes the construction and restoration of home for purchase and rental use. It is limited to assisting households or individuals earning less than 120% of the area median income, with 25% of funding dedicated to households or individuals earning less that than 50% of the area median income.
Funding for the NSP
Amount – West Virginia’s allocation through NSP1 totaled $19.6 million. The allocations through NSP3 totaled $5 million.
Source of Funds
- Federal Agency – U.S. Department of Housing and Urban Development
- CFDA Number and Name – 14.228 -CDBG
Funding Cycle – Most NSP funding has been allocated. The State has a small portion of NSP1 funding and program income that could be committed to a project, or to projects, and a small amount of administrative funding that may be dedicated to a project if needed. NSP3 was closed in 2016.
