NEIGHBORHOOD STABILIZATION PROGRAM 1

HOUSING & ECONOMIC RECOVERY ACT of 2008 (HERA)

On July 30, 2008, President Bush signed into law the Housing and Economic Recovery Act of 2008 (HERA) to address the severe housing crisis. Title III of the Act appropriates $3.92 billion of grant funds under the Neighborhood Stabilization Program (NSP) for states and local governments to purchase and redevelop abandoned or foreclosed properties. The HERA directed the United States Department of Housing and Urban Development (HUD) to target funding to areas with the greatest needs based on the extent of foreclosures, subprime mortgages, and mortgage delinquencies and defaults.

As funding recepients, city, county and state agencies must develop their own programs and funding priorities. However, they 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.

NSP1 AREAS OF GREATEST NEED

In distributing NSP funds, the City of Atlanta must give priority to those areas with the greatest need, which is defined by:

• the greatest percentage of home foreclosures;
• the highest percentage of homes financed by subprime mortgage related loans;
• identified as likely to face a significant rise in the rate of home foreclosure over the next 18 months.

HUD has developed a foreclosure and abandonment risk score to assist grantees in targeting the areas of greatest need within their jurisdictions.  The City of Atlanta will target NSP funds in those areas with an Abandonment & Risk Score of 8, 9, and 10. To download a copy of the map, please see "Other NSP & Foreclosure Resources" section below.

GEORGIA DEPARTMENT OF COMMUNITY AFFAIRS (DCA) NSP DIRECT ALLOCATION

The City of Atlanta submitted an application for Neighborhood Stabiliation Direct Allocation Funding to DCA on January 15, 2009 and was awarded $3.9M on March 27, 2009. The City of Atlanta issued a Request for Letters of Intent for the DCA NSP funding on December 18, 2008 and received 37 responses. Six (6) of the letters of intent proposals were included in the application to DCA. The City awarded DCA NSP funds to five (5) Affordable Housing Developers on May 18, 2009. Funding for DCA NSP Funds was made available for the following activiites:

Activity	Budget
Financing	$1,320,000.00
Acquisition, Rehab, Disposition	$2,300,000.00
Demolition	$130,000.00
Administration	$238,787.00
Total	$3,988,917.00
**25% of funds required to be targeted toward housheolds below 50% of the Atlanta Area Median Income	$997,205.00

Georgia DCA NSP Direct Allocation	Affordable Housing Developers	DCA Quarterly Reports	Available DCA NSP Properties
Application to DCA  Request for LOI LOI Submissions DCA Award Letter	Request for Proposals(RFP) RFP Submissions NSP Developers	March-May 2009 June-August 2009	Coming Soon!!!

PUBLIC HEARING ON MAY 12, 2009
The Community Development/Human Resources Committee of the Atlanta City Council will hold a Public Hearing on the  U.S. Department of Housing and Urban Development (HUD) Allocation of Neighborhood Stabilization Program Funds on Tuesday, May 12, 2009 at 12:30 p.m. in Committee Room #2, 2nd floor, City Hall, 55 Trinity Avenue, SW, Atlanta, Georgia.  For more information, contact Bureau of Housing at 404-330-6390.

OTHER NSP & FORECLOSURE RESOURCES

NSP City of Atlanta Brochure	NSP City of Atlanta FAQ	NSP City of Atlanta Overview  Presentation
US Department of Housing & Urban Development (HUD)	Georgia Department of Community Affairs (DCA)	NSP Abandonment & Risk Score Map
Neighbor Works of America	Enterprise Community Partners, Inc	Federal Reserve Bank of Atlanta
	National Community Stabilization Trust