On July 30, 2008, former President Bush signed into law the Housing and Economic Recovery Act of 2008 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 Housing and Economic Recovery Act of 2008 directed the United States Department of Housing and Urban Development to target funding to areas with the greatest needs based on the extent of foreclosures, subprime mortgages and mortgage delinquencies and defaults. The Federal Notice, which was released on September 30th, provides information regarding method of allocation, program requirements, application procedures, and waivers granted.
Housing and Economic Recovery Act (HERA) of 2008
Includes $541 million total allocation to Florida for Neighborhood Stabilization Program
- $450 million in direct funding from the Federal Department of Housing and Urban Development to 48 "entitlement" communities
- $91 million to state government
State Neighborhood Stabilization Program Distribution and Methodology
Florida's allocation methodology targeted funds to give priority emphasis and consideration to areas with greatest need, including those:
- With the greatest percentage of home foreclosures;
- With the highest percentage of homes financed by a subprime mortgage related loans; and
- Identified as likely to face a significant rise in the rate of home foreclosures.
Neighborhood Stabilization Program Allocations
A total of $88 million will be allocated to the areas of greatest need in the State of Florida.
- Two separate Neighborhood Stabilization Program allocations: the Regular Neighborhood Stabilization Program Allocation and the Supplemental Low-Income Allocation.
- This amount includes local grant administration dollars.
Regular Neighborhood Stabilization Program Allocation
- Initially, no Housing and Urban Development-Funded communities are eligible.
- Used same data and methodology as Housing and Urban Development for allocations to all others.
- $58 million allocated to 26 communities.
- Awards range from $1.25 million to $11 million.
- Minimum grant level is $1.25 million.
Supplemental Low-Income Allocation
- Allocation is dedicated to rental housing only; subgrantees must have five years experience, or are required to partner with Public Housing Authorities or Non Profit Organizations.
- Targeted to persons with income at or below 50% of the area's median income (25% of $91 million must assist this group).
- $29.9 million to same 26 communities.
- Allocated on foreclosure need and less than 50% population.
- Minimum grant level is $500,000.
- $3.1 million for State Administration / Staffing for four years, including training, technical assistance, and monitoring.
Submittal of Neighborhood Stabilization Program Substantial Amendment and Timeline
- Public Comment Period ran November 14 - 28 with a Public Hearing in Tallahassee on November 24, 2008
- Plan submitted to Housing and Urban Development on December 1; approved by Housing and Urban Development February 2009
- Agreement with the Department of Community Affairs executed by Housing and Urban Development March 3, 2009
- Florida's Neighborhood Stabilization Program (NSP1) Substantial Amendment - June 15, 2010
- The State of Florida Neighborhood Stabilization Program (NSP1) Substantial Amendment, amended June 15, 2010, and amended March 31, 2013
- The State of Florida Neighborhood Stabilization Program 3 Substantial Amendment - Amended March 1, 2011, Revised June 30, 2011; Revised June 30, 2012; Revised December 31, 2012
Program Quarterly Reports
Neighborhood Stabilization Program 1
Neighborhood Stabilization Program 3
United States Department of Housing and Urban Development Links
- Jeannie Russell, Program Manager