Neighborhood Stabilization Program
This program is no longer accepting applications.
The Neighborhood Stabilization Program (NSP) was first created by Congress through 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). NSP is a component of the Community Development Block Grant (CDBG) program and is designed to mitigate the neighborhood effects of foreclosure in areas of greatest need by stabilizing property values in targeted communities to decrease the rate of decline in values. Funding must support foreclosed, abandoned or vacant properties.
Fund Type: Federal
Eligibility
Eligible Project Types and AMI Levels
- Rental and Homeownership
- No less than 25 percent of all grant funds must serve households at or below 50% AMI
- The remainder of grant funds can serve households up to 120% AMI
Eligible Activities
NSP funds may be used for activities that include and are not limited to:
- Establishing financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties
- Purchasing and rehabilitating abandoned or foreclosed homes and residential properties
- Establishing land banks for foreclosed homes
- Demolishing blighted structures
- Redeveloping demolished or vacant properties
See Resources section below for NSP Property Definitions
Award Terms
Funds are awarded as a grant or a loan
Eligible Grantees
- Units of local government (towns, cities and counties)
- Nonprofit organizations
- Housing authorities and urban renewal authorities
Eligible Borrowers
- For-profit developers
Loan Terms
- Interest rate: 0-3%
- Fee: none
- Term: 17-50 years
- Repayment: typically commensurate with senior debt
Legislation
Housing and Economic Recovery Act of 2008
American Recovery and Reinvestment Act of 2009
Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
Resources
Policies and Procedures Concerning the Use of State's Direct Action
Application Instructions and Materials
Contact
Alison O’Kelly at 303-864-7821 or alison.okelly@state.co.us