Understanding NSP..

I see that NSP (Neighborhood Stabilization Program) is on the agenda for tonight at the city council meeting.  I found this from the HUD website


The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized. NSP1, a term that references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis. NSP2, a term that references the NSP funds authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provides grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. The Recovery Act also authorized HUD to establish NSP-TA, a $50 million allocation made available to national and local technical assistance providers to support NSP grantees.

Nature of Program

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 develop their own programs and funding priorities. However, 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. Activities may not qualify under NSP using the “prevent or eliminate slums and blight” or “address urgent community development needs” objectives.

Eligible Uses

NSP funds may be used for activities which include, but are not limited to:

  • Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
  • Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
  • Establish land banks for foreclosed homes;
  • Demolish blighted structures;
  • Redevelop demolished or vacant properties

Homebuyer Assistance

Homebuyers cannot receive assistance directly from HUD. NSP funds can be used to help homebuyers purchase homes, but they must contact an NSP grantee for application details. NSP operates on a national scale, but participation requirements may differ from one state or city to another. For information on how you may purchase a home with NSP assistance please contact an NSP grantee in your area. See NSP Grantee Contacts page for details.

Here is a list that is public information of the Grantee information when you type in the search for Michigan this is the list that comes up.

Adobe Reader Grantee Search Results

The quarterly reports for all the city’s on the list are up for all to see you will not find Dearborn heights on this list because our grant is for less then two million,but I did take a look at the one for Dearborn B-08-MN-26-0003_2010_Q2_QPR If you want to see the whole list and view their reports you can click here when you see the web page look to the far right, and you can click to view the quarterly reports for the city’s listed.

The quarterly report for Dearborn Heights is under the State Of Michigan on page 103-105 Jan 1 thru March 3 Nothing recent is up there yet click the link below go to page 103 mshda_cd_nsp1_drgr_quarterly_330438_7

Found an interesting Memo Under the


TO: File
DATE: August 11, 2010
RE: Disallowed Costs Process for NSP
In the event potential disallowed costs are identified by OCD staff or others, the following steps should be taken:
1. The appropriate CD Specialist will ask the Grantee for an explanation – preferably
through a telephone call or a site visit, though email can also be used. The CD
Specialist will inform the Grantee that a written explanation and any required
documentation must be submitted to the CD Specialist within 2 business days.
If the written explanation (and documentation if required) is received and is satisfactory –no additional action is necessary.
2. If the written explanation (and documentation if required) is not provided within 3
business days or is inadequate, the CD Specialist will notify the OCD Director, the OCD
Field Services Director, and the OCD Internal Operations Director. These OCD staff
(including the CD Specialist) will determine the appropriate course of action. At a
minimum, a conference call with the Grantee will be held advising them of the situation and informing them that no additional funds will be disbursed pending resolution of the disallowed costs. During the conference call, all potential methods of resolution will be outlined and the grantee informed of the total dollar amount of the disallowance. One of the methods of resolution may be for the grantee to consult with and/or request a waiver from HUD (handled through the Detroit Field Office). If the Grantee elects to pursue direct consultation with HUD regarding the disallowance for clarification and/or waiving of federal rules and regulations, MSHDA will not disburse any additinal funding to the Grantee until a formal written response is received by the Grantee from HUD and provided to MSHDA.
3. Once a resolution is deemed satisfactory and complete all disbursements by MSHDA will resume. No disbursements will be allowed until all disallowed costs are repaid in full and/or the projects are removed from the OPAL system and restructuring of the grant activities to ensure compliance is complete.
If you have any questions, please contact your CD Specialist.

You can read it for your self here along with all the other guidelines for NSPmshda_cd_nsp1_guide_330426_7 it’s on pg. 41

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1 thought on “Understanding NSP..”

  1. Thanks Kathy for these details of the program. It is a big help.

    After reading this, I’m even more convinced that the $6.4 MILLION of NSP money that Wayne County is giving to outside organizations to build a basketball center in Dearborn Heights in NO WAY fits into the intention of the NSP program. Sounds like the same old politics at work, and the residents of Dearborn Heights are left out in the cold — or, more accurately, are left with flooded basements and vacant homes next door.

    We need elected officials who will stand up to this kind of nonsense and fight for us!


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