Neighborhood Stabilization Program (NSP)

The U.S. Department of Housing and Urban Development's new Neighborhood Stabilization Program (NSP) provides targeted emergency assistance to states and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. Minnesota Housing is the grantee for the state in the amount of $38.8 million. Minnesota Housing's Funding Applications are now closed. Approved awardees can be viewed by clicking on the following link:
NSP Award Announcements

State Subrecipients
Minnesota Housing sub granted NSP funds to local units of government experienced in administering CDBG funding.
NSP Subrecipient Contact List - updated May 27, 2010

Areas of Greatest Need
Minnesota Housing has targeted funds to give priority emphasis and consideration to areas with greatest need identified through a funding formula:

Areas with the greatest percentage of home foreclosures;
Areas with the highest percentage of homes financed by a subprime mortgage related loan; and
Areas identified as likely to face a significant rise in the rate of home foreclosures.

NSP Fund Uses

Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties
Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed, in order to sell, rent, or redevelop
Establish land banks for homes that have been foreclosed
Demolish blighted structures
Redevelop demolished or vacant properties

Ineligible Activities

Generally, if an activity is ineligible under CDBG, it is ineligible under NSP
Foreclosure prevention
Demolition of non-blighted structures
Purchase of properties not abandoned or foreclosed upon
Redevelopment for commercial purposes

General Program Information
Final NSP (2008 Substantial Amendment) Action Plan - revised January 12, 2009
NSP Program FAQs - revised June 8, 2009
NSP HUD Quarterly Progress Report - June 30, 2010
NSP Timeline
NSP ENews Archive
NSP Award Announcements
Program Concept
Program Forms

Direct NSP HUD Grantee Websites
City of Minneapolis
City of St. Paul
Hennepin County
Anoka County
Dakota County

Other Potential Funding Sources
Department of Commerce
Department of Employment and Economic Development
Family Housing Fund
Greater Minnesota Housing Fund
Metropolitan Council

NSP Contact
Please contact Ruth Simmons for questions on the NSP Fund at 651-297-5146, ruth.simmons@state.mn.us.

Housing Resources

Form Finder

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Neighborhood Stabilization Program (NSP)