HUD's Neighborhood Stabilization Program (www.hud.gov/nsp) provides emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The Neighborhood Stabilization Program (NSP) provides grants to every state, certain local communities, and other organizations to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act of 2008.
There have been three rounds of funding for NSP. The Housing and Economic Recovery Act of 2008 provided a first round of formula funding to States and units of general local government, and is referred to herein as NSP1. The American Recovery and Reinvestment Act provided a second round of funds in 2009 awarded by competition, and is referred to herein as NSP2. The third round of funding, NSP3, was provided in 2010 as part of the Dodd-Frank Wall Street Reform Act and was allocated by formula.
The NSP1 allocation was done via a two-step formula that first made statewide allocations and then local allocations. The raw data and step-by-step information on how each allocation was calculated are available for both the statewide allocation and the local allocations.
Formula Methodology (please read first)
NSP2 was a competitive grant, and applicants were encouraged to used funds for concentrated investment in carefully chosen target areas. To facilitate the identification of target areas, HUD developed an online mapping application, which is available here: http://www.huduser.org/nspgis/map.aspx
This mapping tool provides foreclosure and abandonment risk scores for all census tracts, which were updated from the NSP1 risk scores. The methodology used to calculate scores for the NSP2 grants can be found at: http://www.huduser.org/portal/NSP2datadesc.html
These links provide data and tools that may be useful for NSP3 grantees implementing their program. This site is updated as of October 15, 2010 to support implementation of NSP3. It includes information on foreclosure problems through June 2010.
NSP 3 Formula Methodology. This document describes the methodology used to allocate funds under the NSP 3 program.
NSP 3 Formula Allocations with Supporting Data. This document shows the grant amounts for each grantee and some supporting data.
NSP 3 Mapping Tool for Preparing Action Plan.To receive NSP3 funding, each grantee must submit an action plan substantial amendment or abbreviated plan to HUD in accordance with the notice posted at www.hud.gov/nsp. As part of preparing that substantial amendment, each grantee must use this HUD Foreclosure Need website to show its NSP3 areas of greatest need and submit the resulting output to HUD as part of its substantial amendment. If a grantee has more than one identified target area, it will need to provide separate documents for each area. Unlike NSP2, grantees are not constrained to Census Tract boundaries and can define their target areas more precisely to their intended target area.
Data downloadable by state showing the foreclosure risk score, LMMI area benefit, address vacancy, and other information for each block group: A data dictionary for these files is here
NSP Income Limits
- Data on the FY 2013 income limits applicable for NSP (Effective December, 2012)
- Data on the FY 2012 income limits applicable for NSP (Effective December, 2011)
- Data on the FY 2011 income limits applicable for NSP (Effective June, 2011)
- Data on the FY 2010 income limits applicable for NSP (Effective May, 2010)
- Data on the FY 2009 income limits applicable for NSP (Effective March, 2009)
- Data on the FY 2008 income limits applicable for NSP
Other Mapping Tools
As an organization either applying to HUD for NSP grant dollars or interested in the program, you know that HUD expects grantees to consider several specific pieces of data in preparing plans and strategies for targeting funds.Click here to view the mapped data on PolicyMap.
LMMI Block Groups
See the data download feature under NSP3 to obtain the low-, moderate-, and middle-income (less than 120% of area median family income). Grantees using an older version of the LMMI calculation (http://www.huduser.org/portal/datasets/nsp_target.html) may still use that calculation for determining area eligibility.