The purpose of NSP is to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. The NSP provides grants to purchase foreclosed or abandoned properties and to rehabilitate, resell, or redevelop these properties in order to stabilize neighborhoods and stem the decline of house values of neighboring homes.
This is not a foreclosure prevention program. HUD has no funding in this for counseling or funds to bring a past due mortgage current. This is strictly to help stabilize neighborhoods negatively impacted by already foreclosed or abandoned property.
HUD rules specifically stipulate that property rehabilitated and sold under the NSP can only be sold for an amount equal to or less than the total expenditure. No additional profit or income is allowed.
By HUD definition Foreclosed Property is: A property that has been foreclosed upon at the point that, under state and local law, the mortgage or tax foreclosure is complete and title for property has been transferred from the former homeowner.
Most likely participants may include: Local governments, non-profits, Public Housing Authorities and for profits. Local partnerships are preferred and encouraged. In the case of partnerships a lead agency must be designated.
SC Housing is designated by HUD to administer these funds. Funding is provided through HUD's Community Development Block Grant Program under the Housing and Economic Recovery Act of 2008. A total of $3.92.billion will be distributed to state and local governments nationwide.
Manuals & Forms