NEIGHBORHOOD STABILIZATION PROGRAM 2 (NSP2)
Background Information | Vision & Concept | Application Submission Timeline
UPDATE: Brookings Institution Assesses COG's Neighborhood Stabilization Program
*View/download a brief presentation on the Neighborhood Stabilization Program and the Metropolitan Washington Area Consortium
On May 22, 2009 the Metropolitan Washington Council of Governments (COG) hosted a meeting of local housing directors, housing advocacy groups and researchers to discuss potential funding opportunities in the Neighborhood Stabilization Program (NSP 2) to stabilize communities impacted by large numbers of foreclosed housing units in the region.
The Metropolitan Washington Area Consortium – a subset of interested parties from the May 22nd meeting – later met on Thursday, June 4 to outline its plans for a regional consortium NSP2 grant application to HUD. To date, the Consortium is comprised of six local jurisdictions to include: the City of Alexandria, Virginia; the City of Bowie, Maryland; Fairfax County, Virginia; the City of Gaithersburg, Maryland; Prince George’s County, Maryland; and Prince William County, Maryland.
One-page summaries of the proposal are available in English and Spanish. If approved, the Metropolitan Washington Area Consortium’s grant monies will fund the following activities:
- Homebuyer Assistance Program – This activity will include the provision of a variety of financing mechanisms for first time homebuyers interested in purchasing foreclosed and/or abandoned properties. Such mechanisms may include down payment assistance, closing cost assistance, interest rate buy downs, soft-second home loans and/or other similar financial tools.
- Acquisition, Rehab and Sale – This activity provides financing to development groups, primarily selected through a competitive process, to acquire rehabilitate and resell foreclosed and/or abandoned homes to income-eligible buyers.
- Acquisition, Rehab and Rental – This activity provides financing to nonprofit organizations to acquire, rehab and hold foreclosed and/or abandoned properties for long-term rental.
Upon award from HUD, the Consortium will create a regional property acquisition fund targeting abandoned and/or foreclosed properties with the assistance of its local Community Development Financial Institution (CDFI). The CDFI would serve as the originator of our financing program and would leverage additional resources from the National Community Stabilization Trustís (NCST) REO Capital Fund. A successful relationship with NCST would allow the Consortium to provide many deserving Washington area homebuyers and households with financial assistance.
In addition to assisting with the Consortiumís capital fund, NCST would prove an added resource with our overall property acquisition program. NCST facilitates the transfer of foreclosed and abandoned properties from partner financial institutions to local entities. Therefore, the Consortium would like to collaborate with NCST in order to obtain REO properties within our target areas. The Consortium, with its partners, would then acquire and rehabilitate the homes and sell/lease them to income eligible households. For more information on NCST and its programs, please visit their website at www.stabilizationtrust.com.
The Consortium seeks to request approximately $35 million from the U.S. Department of Housing and Urban Development (HUD) to support its proposed NSP2 programs. Below is a list of specific communities the regional consortium seeks to target:
Fairfax County, VA
- Lincolnia Hill/Quantrell/Armistead
- Van Dorn South/Eisenhower West
Prince William County, VA
- Franklin Farm
- Mt. Vernon
- Dale City
- Lake Ridge
- Manassas Park
- West Gate
Prince George’s County, MD
- Brighton East
- Cedar Park
- Deer Park Place
- Camp Springs
- Capitol Heights
- College Park
- Coral Hills
- East River Dale
- Glenn Dale
- Lake Arbor
- Oxon Hill
- Riverdale Park
- Temple Hills
The Metropolitan Washington Area Consortium’s vision for the region’s stabilization is further discussed in the NSP2 Concept Paper. This concept paper was written by Consortium members and is based on both quantitative and qualitative data detailing the foreclosure problem’s impact on the Washington region. The concept paper provides the Consortium’s rationale for embarking upon the Federal grant application and what tangible benefits its efforts will present to the Washington Region following grant award and program implementation.
Application Submission Timeline
Consortium members are presently preparing the regional NSP2 application. Applications are due to HUD by 5 p.m. Friday, July 17. Applicants are required to adhere to a 10-day public comment period. The comment period is meant to apprise residents of the target communities about the applicantís proposed neighborhood stabilization activities. The Metropolitan Washington Areaís comment period ends Wednesday, July 15. Public comment period has now ended.
UPDATE (7/21/09): The Consortium submitted its regional NSP2 application. A copy of the Consortium’s program summary and application is available for public review by clicking here.
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