Neighborhood Stabilization Program

The Neighborhood Stabilization Program (NSP1) was first created by Congress in the Housing and Economic Recovery Act of 2008, followed by the American Recovery and Reinvestment Act of 2009 (NSP2), and the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (NSP3). The program is an effort to mitigate the neighborhood effects of foreclosures in areas of greatest need. NSP funds help stabilize the property values in targeted communities by decreasing the rate of decline in property values.

NSP is a component of the Community Development Block Grant (CDBG). All funds must serve households at or below 120% of the area median income and a minimum of 25% of the funds must serve households at or below 50% of the area median income, as the national objective.

Eligible Grantees

Units of local government
Nonprofit organizations
For-profit organizations (developers and contractors)
Quasi-governmental entitles (housing authorities and urban renewal authorities)

Eligible Activities

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

Through NSP1, the State of Colorado was granted over $53 million. These funds are to be used to mitigate the neighborhood effects of foreclosures in areas of greatest need. HUD allocated these funds as follows:

Colorado State Program: $34,013,566
Adams County: $4,600,211
City of Aurora: $4,474,097
City of Colorado Springs: $3,904,989
City and County of Denver: $6,060,170

In addition, the Dodd-Frank Wall Street Reform and Consumer Protection Act allocated more than $17 million in NSP3 funding to the State of Colorado in 2011.

Colorado State Program: $5,098,309
Adams County: $1,997,322
City of Aurora: $2,445,282
City of Colorado Springs: $1,420,638
City and County of Denver: $2,700,279
City of Greeley: $1,203,745
City of Pueblo: $1,460,506
Weld County: $1,023,188