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Neighborhood Stabilization Program - NSP1, NSP2 and NSP3
Consumer Alert
The Neighborhood Stabilization Program (NSP) is a federally funded program administered by Oregon Housing and Community Services (OHCS). NSP is offered exclusively by OHCS in partnership with local cities and counties who directly allocate NSP funding to eligible recipients for eligible uses. To apply for NSP funding, consumers must work directly with one of the approved cities or counties.

Notice of Funds Available
Overview and Background
The Neighborhood Stabilization Program (NSP) was developed by the U.S. Department of Housing and Urban Development (HUD) as a response to the proliferation of residential foreclosures that have adversely affected the housing market and greater economy over the last few years. There are three phases of NSP funding and each phase is described in more detail below. The purpose of NSP is to stabilize neighborhoods with high inventories of foreclosed residential properties by providing a financial incentive to homebuyers and qualified non-profit developers. Oregon Housing and Community Services (OHCS) is the primary grantee and administrator of NSP funds in the State of Oregon. OHCS allocates NSP funding to various cities, counties and non-profit developers via either a formula basis or by competitive applications.

Frequently Asked Questions about NSP
For NSP FAQ's please click here.

NSP-1 Background, Status and Participating Jurisdictions
NSP-1 was created under Federal Legislation known as the Housing and Economy Recovery Act of 2008 (HERA). Oregon Housing and Community Services (OHCS) was awarded $19,600,000 that was allocated to various cities, counties, non-profit and housing authorities. As of September 16, 2010 100% of NSP-1 funds were committed to projects eligible target areas throughout the state. As of the end of the first quarter in 2011, 91% of NSP-1 funds have been expended and the remaining 9% of funds are obligated to rehabilitation or new construction projects. As a result, no participating jurisdictions are accepting applications for funding. For more information on program expenditures and progress see the Action Plans and Quarterly Reports section of this webpage listed below.

NSP-2 Background, Status and Participating Jurisdictions
NSP-2 was created under Federal Legislation known as the American Reinvestment and Recovery Act of 2009 (ARRA). Oregon Housing and Community Services (OHCS) and the Cities of Bend, Medford and Salem and the Counties of Clackamas and Washington applied for NSP-2 as a Consortium on a competitive basis to HUD Headquarters in Washington D.C. OHCS and its Consortium members were awarded $6,829,635 in NSP-2 funds. In January of 2011 the City of Salem dropped out of the Consortium and its funds were reallocated to other Consortium members.  Currently, all members of the Consortium have committed their funds to projects. As a result, no participating jurisdictions are accepting applications for funding. For more information on program expenditures and progress see the Action Plans and Quarterly Reports section of this webpage listed below.

NSP-3 Background, Status and Participating Jurisdictions
NSP-3 was created under Federal Legislation known as the Dodd-Frank Wall Street Reform Act. Oregon Housing and Community Services (OHCS) was awarded $5,000,000 in NSP-3 funds in January of 2011.
 
Beginning in October or November of 2011, NSP-3 will be available in the Cities of Gresham, Medford, Portland and Redmond. Note some city's program may not be ready for implementation until December of 2011 or possibly in January or February of 2012. NSP-3 similar to NSP-1 and NSP-2 provides down payment, closing cost and minor rehabilitation financial assistance to home buyers with household incomes below 120% of the area median income.  Homes purchased with NSP-3 must be foreclosed or abandoned. To find out more about NSP-3 and how you may access financial assistance please click on the link below.  
 
NSP-3 Program City Locations and Contacts for Assistance 
You can learn more about NSP-3 program goals and the proposed target areas and by reading the NSP-3 Action Plan.

Finding NSP Eligible Properties in HUD Designated Target Areas
NSP eligible properties are located in HUD designated target areas. Each phase has different target areas which may be found by following the instructions listed below. With each new phase of NSP, the target areas become smaller. Under no circumstance may NSP funds be expended outside of these geographically based target areas. OHCS has created an interactive system under Google Maps that enables users to type in specific addresses to determine if the property they are interested in is located in an NSP eligible target area.
  • HUD's REO Portal is intended to help local communities, homebuyers and responsible investors to acquire foreclosed properties and accelerate efforts to stabilize local housing markets. The mapping tool shows all foreclosed properties owned by Fannie Mae, Freddie Mac and FHA.
  • Instructions for installing Google Earth and the OHCS Neighborhood Stabilization Program. KML File for use on a personal computer.

 

 

 


Substantial Amendments, Action Plans & Quarterly Reports
Substantial Amendments, Action Plans & Quarterly Reports
Substantial Amendment: To receive NSP-1 and NSP-3 funding OHCS was required to create and submit a Substantial Amendment. This document contains critical information including the participating jurisdictions, methodology for distribution of funding and creating target areas and specific program regulations. This document may be amended if specific program elements change such as distribution of funding or the geographic configuration of the target areas. Note that for NSP-2 a Substantial Amendment was not created or submitted. NSP-2 funding was obtained through a competitive grant process. Note however that all three programs are similar except for the amount of funding available, the locations and size of the target areas and the participating jurisdictions administering the program. 
 
Action Plan: The Action Plan is a summary of the Substantial Amendment. After HUD executes its NSP grant agreement with OHCS, it creates an Action Plan which is inserted into the Disaster Recovery and Grant Reporting (DRGR) system. Through DRGR, OHCS produces quarterly reports (see next item below). 
 
Quarterly Performance Report: At the end of each quarter of the calendar year, OHCS completes the Quarterly Performance Report (QPR) for each NSP grant. QPRs provide information to HUD and the general public about NSP program activities, expenditures and accomplishments by quarter and the cumulative totals of accomplishments to date. HUD requires that OHCS post QPRs on its website to ensure the general public is informed about NSP progress and program accomplishments.

Links to Substantial Amendments, Action Plans, Quarterly Performance Reports, Public Notices and Request for Proposals. 
 
NSP-1: 

NSP-2: 

 
NSP-3:  
NSP-3 Funds Available and Contacts Information by Sub recipient of local jurisdiction
NSP Resources
NSP HUD Resource Exchange Website for Current Guidance and Regulations 

NSP Contact Information
Oregon Housing & Community Services
ATTN: Neighbor Stabilization Program 
725 Summer St NE – Suite B
Salem, OR  97301-1266
Fax: 503-986-0996 


Alycia.Howell@oregon.gov, NSP Analyst
Phone: 503-986-2109