Neighborhood Stabilization Program

Overview

In response to the high numbers of mortgage foreclosures and home abandonments in 2008, the U.S. Department of Housing and Urban Development (HUD) established The Neighborhood Stabilization Program (NSP).

22 Whitmarsh - Exterior - After NSP Grant FundsAs a new component of the Community Development Block Grant program, the NSP aims to:  stabilize declining housing markets and home values; support housing stock continuity within neighborhoods; and revitalize the communities hardest hit by recent home vacancies.  To meet these goals, HUD designated federal NSP funds to assist in the redevelopment of existing foreclosed and abandoned properties.

Rhode Island received $19.6 million of NSP funds as part of the Housing and Economic Recovery Act of 2008 (HERA) and an additional $5 million as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) of 2010. In total, the Rhode Island Neighborhood Stabilization Program (RI NSP) has received a total of $24.6 million to invest in neighborhoods throughout the state.  The Rhode Island Office of Housing and Community Development and Rhode Island Housing jointly administer this program on behalf of the State of Rhode Island.

22 Whitmarsh - Exterior - Before NSP Grant Funds

The RI NSP funds have been awarded for the following types of assistance:

  • Direct Acquisition and/or Rehabilitation of abandoned and foreclosed properties - reintroducing housing opportunities into the rental and homeownership markets; thus the presence of, and the homes for, the families that become part of the neighborhood revitalization
  • Acquisition Assistance - enabling interested home buyers in the purchase of a previously foreclosed property.
  • Land Banking - enabling the State to acquire and maintain the individual properties considered key to neighborhood sustainability as developers finalized development and funding plans.
  • Demolition - in a limited amount, allowing for the redevelopment of previously existing housing units.

Though not addressed in the Neighborhood Stabilization Program, Foreclosure Prevention Assistance is addressed in several HUD programs.  Click here for more information.
           
22 Whitmarsh - InteriorAccomplishments

Since 2008, the RI NSP has awarded more than $26 million, including program income, to development activity within the Rhode Island neighborhoods once targeted as the areas with: the highest percentage of foreclosures; the highest percentage of subprime loans; and the greatest likelihood of future high foreclosure rates.  
To date, the Rhode Island Neighborhood Stabilization Program has played a pivotal role in more than 300 families finding new homes and revitalizing neighborhoods around the state.  

RI NSP Documents and Links


RI NSP1 Quarterly Progress Reports


RI NSP3 Quarterly Progress Reports