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Overview
The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME program provides a safe harbor for NSP affordability requirements. NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.
Eligible Uses
NSP funds may be used for only the activities listed below:
- Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
- Purchase and rehabilitate homes and residential properties abandoned or foreclosed in order to sell, rent, or redevelop such homes;
- Establish land banks for foreclosed homes;
- Demolish blighted structures;
- Redevelop demolished or vacant properties
Timeline
NSP1
Funds must be obligated to specific projects in 18 months of award from HUD and all NSP funds must be spent in 4 years.
NSP2
50% of funds must be spent in 2 years of award from HUD and 100% of NSP2 funds must be spent in 3 years of award from HUD.
Income Limits
NSP Funds can be utilized to assist households up to 120% of the Area Median Income. The 2010 Area Median Income Limits for the Metro Nashville-Davidson County area, adjusted for household size are listed below.
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Nashville-Davidson County Income Limits--Neighborhood Stabilization Program
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FY 2010 Income Limits for 50% of HUD Area Median Income
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1 person household
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2 person household
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3 person household
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4 person household
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5 person household
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6 person household
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7 person household
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8 person household
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$22,850
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$26,100
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$29,350
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$32,600
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$35,250
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$37,850
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$40,450
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$43,050
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FY 2010 Income Limits for 120% of HUD Area Median Income
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1 person household
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2 person household
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3 person household
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4 person household
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5 person household
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6 person household
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7 person household
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8 person household
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$54,750
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$62,600
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$70,400
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$78,250
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$84,500
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$90,750
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$97,000
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$103,300
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NSP Resources
Additional information on the NSP program can be found at: http://hudnsphelp.info/index.cfm
For more information about the State of Tennessee’s NSP program, please see: http://www.thda.org/Programs/commpro/cvr.htm
For questions about the Neighborhood Stabilization Program, please call 615-252-8508.
