NEIGHBORHOOD STABILIZATION PROGRAM (NSP)

NEIGHBORHOOD STABILIZATION PROGRAM1 (NSP1)

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.

Overview	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.
Eligible Activities	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 homebuyers.
Key Program Definitions	Abandoned 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. Blighted Structure A structure is blighted when it exhibits objectively determinable signs of deterioration sufficient to constitute a threat to human health, safety, and public welfare. Foreclosed 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.
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. 50% of NSP2 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.
Funding Requirement	HUD is requiring that atleast 25% of NSP funds must be spent to develop housing for households at 50% of the Atlanta Area Median Income.
Reporting Requirements	HUD is requiring that each grantee provide monthly financial reports and quarterly performance reports throught the Disaster Recovery Grant Reporting System (DRGR).
NSP Income Limits	NSP Funds can be utilized to assist households up to 120% of the Atlanta Area Median Income.  The 2009 Atlanta AMI* Income Limits, adjusted for household size are listed below. Household Size 1 2 3 4 5 6 50% AMI $25,100 $28,700 $32,250 $35,850 $38,700 $41,600 80% AMI $40,150 $45,900 $51,600 $57,350 $61,950 $66,550 120% AMI $60,250 $68,850 $77,450 $86,050 $92,900 $99,800 * AMI (Area Median Income) is adjusted by household size and published by HUD annually.

NSP1 & NSP2 UPDATES
Last Updated 10/16/2009

NSP1 Public Hearing
The Community Development/Human Resources Committee of the Atlanta City Council will hold a Public Hearing on Tuesday, October 27, 2009, at 12:30 p.m., in Committee Room #2, 2^nd floor, City Hall, 55 Trinity Avenue, SW  to amend the 2008 Action Plan of the 2005-2009 Consolidated Plan. The proposed amendment will transfer $800,000 from Neighborhood Stabilization Program Activity “A” (Financing) to Activity “E” (Redevelopment) to allow new construction and acquisition and rehabilitation of vacant, non-foreclosed properties. For more information, please contact the Bureau of Housing at (404) 330-6390.

Request for Qualifications for HUD-approved Homebuyer Counseling Agencies
The City of Atlanta, Department of Planning & Community Development, Bureau of Housing is soliciting a statement of qualifications and quotes from qualified Homebuyer Counseling for the provision of counseling services to households purchasing homes through the City of Atlanta’s Neighborhood Stabilization Program (NSP) program. Homebuyer Counseling agencies must be HUD certified to participate in this program.  The NSP program requires eight (8) hours of pre-purchase counseling.  To be considered, respondents must submit a complete response to this Request for Statement of Qualifications and Quotes by September 25, 2009 by 4 pm. Any Statement of Qualifications and Quotes received after 4:01 p.m. on the statement submission date will not be considered and will be rejected. No responses will be accepted by facsimile or email. 

Request for Qualifications for Construction Inspections & Monitoring Services
The City of Atlanta, Department of Planning & Community Development, Bureau of Housing is soliciting a statement of qualifications and quotes from qualified Construction Monitors for the monitoring of rehabilitation work on residential single-family (less than 4 units) and multi-family properties. Services will be requested on an as needed basis for the City of Atlanta’s Neighborhood Stabilization Program. The City of Atlanta’s Neighborhood Stabilization Program will affect approximately 250 units. However, there is no guarantee of the total amount of work to be performed, if selected. To be considered, respondents must submit a complete response to this Request for Statement of Qualifications and Quotes by September 4, 2009 by 2pm to the Bureau of Housing. Responses received after 2:01pm will not be accepted.

NSP2 Consortium Application
The City of Atlanta is soliciting comment on our consortium application for no more than $75 million in funding under the Neighborhood Stabilization Program 2 (NSP2).  Comments on the application may be submitted in writing to the following address:

Bureau of Housing
City of Atlanta
68 Mitchell Street, Suite 1200
Atlanta, Georgia 30303

Comments may also be submitted in writing to the following email address: BureauofHousingNSP@atlantaga.gov.  Comments must be received by July 13, 2009.

NSP2 Public Hearing
The Community Development/Human Resources Committee of the Atlanta City Council will hold a Public Hearing on Tuesday, June 30, 2009, at 12:30 p.m., in Committee Room #2, 2^nd floor, City Hall, 55 Trinity Avenue, SW authorizing the Mayor to enter into a Consortium Agreement to apply for and accept a competitive grant from the U.S. Department of Housing and Urban Development (HUD) under the Community Development Block Grant (CDBG) Neighborhood Stabilization Program 2 (NSP2).  For more information, please contact the Bureau of Housing at (404) 330-6390.

NSP1 Developers
On May 18, 2009 the City of Atlanta awarded DCA NSP Direct Allocation funds to five (5) Affordable Housing Developers. On June 1, 2009, the City of Atlanta awarded HUD NSP funds to fourteen (14) Affordable Housing Developers.