NEIGHBORHOOD STABILIZATION PROGRAM OVERVIEW
The Neighborhood Stabilization Program (NSP) will provide emergency assistance to state and local governments to acquire and redevelop abandoned or foreclosed properties that might otherwise become sources of abandonment and blight within their communities. NSP funds can not be used to acquire homes from current owners.
Neighborhood Stabilization Program will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.
NSP funds can only be used for the following activities:
- Purchase and rehabilitate foreclosed properties in order to sell, rent, or redevelop such homes and properties.
- Demolish blighted structures.
- Redevelop demolished or vacant property.
- Establish or enhance the capacity of land to assist in property redevelopment efforts
- Establish funding mechanisms for the purchase and redevelopment of foreclosed homes including soft-seconds, loan loss reserves, and shared equity loans for low-and moderate-income home buyers.
Key Program Definitions
A home is abandoned when mortgage or tax foreclosure proceedings have been initiated for that property, no mortgage or tax payments have been made by the property owner for at least 90 days, AND the property has been vacant for at least 90 days.
A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare.
A property “has been foreclosed upon” at the point that, under state or local law, the mortgage or tax foreclosure is complete. HUD generally will not consider a foreclosure to be complete until after the title for the property has been transferred from the former homeowner under some type of foreclosure proceeding or transfer in lieu of foreclosure, in accordance with state or local law.
Beneficiary Income Requirements
NSP Funds can be utilized to assist households up to 120% of the Atlanta Area Median Income (AMI), however some properties are set-aside for households at 50% AMI.
AMI (Area Median Income) is adjusted by household size and published by HUD annually.
NSP1 & NSP3 UPDATES
Last Updated 09/2017
City of Atlanta is a Fair Housing/Equal Opportunity/Handicap Accessible Jurisdiction.