Neighborhood Stabilization Program Funds Affordable Housing

The Housing and Economic Recovery Act of 2008 contained numerous provisions for dealing with the housing crisis. Several programs were created, including the Neighborhood Stabilization Program (NSP). The NSP program was created specifically to deal with foreclosed, abandoned and brighted properties. The third round of funding for the NSP took place late last year. A…

The Housing and Economic Recovery Act of 2008 contained numerous provisions for dealing with the housing crisis. Several programs were created, including the Neighborhood Stabilization Program (NSP). The NSP program was created specifically to deal with foreclosed, abandoned and brighted properties. The third round of funding for the NSP took place late last year. A total of $ 1 billion was allocated for the program, to be distributed nationwide to areas hard-hit by the housing downturn. The state of Florida received a sizable chunk of that funding.

Florida is set to receive over $ 200 million in NSP3 funding this year; the largest amount awarded to any state. Of that amount, $ 30 million was awarded to the Tampa Bay area. St. Petersburg, Tampa and Clearwater are expected to receive money as well. Local officials are pursuing HUD's decision to allocate additional funding, saying it will not only help rehabilitate troubled and abandoned homes, but will also provide much-needed jobs. The Florida Housing Finance Corporation has not yet announced how it intends to distribute the money.

Every state in the US has received NSP funding at one time or another. The program's creators hope the grant money will prevent further decreases in home values ​​and help communities effectively address the issue of abandoned properties. While only governments and for-profit businesses can apply for NSP funds, the grants can be distributed, via those entities, to other organizations, including non-profits.

With this most recent round of funding, the Department of Housing and Urban Development (HUD) hopes NSP grants will continue to provide much-needed monetary assistance to communities across the country still struggling to recover from the housing crisis.