Neighborhood Stabilization Program

Tim Waddell, Division Administrator

Elyse Shindelar—Program Managerelyse.shindelar@iowalifechanging.com 515.725.3005

Housing and Economic Recovery Act of 2008-HERA

Neighborhood Stabilization Program (NSP), created by HERA, will provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.

National Objective

• All NSP activities are to serve households at or below 120% of the AMI for their county/MSA.

• 25% of all funding must serve households at or below 50% of the AMI for their county/MSA.

NSP eligible activities

• Establishing Financing Mechanisms• Purchase and Rehabilitate Foreclosed and

Abandoned homes or residential properties• Establish Land Banks • Demolish Blighted Structures• Redevelop Demolished or Vacant Properties

Housing and Economic Recovery Act of 2008-HERA

Abandoned: Mortgage/tax foreclosure proceedings initiated, no payments 90 days and vacant 90 days

Foreclosed: Mortgage/tax foreclosure complete, includes title transfer from former owner

Blighted: Objectively determinable deterioration that is a threat to human health, public safety and/or public welfare

Land Bank: Purchase, manage, dispose of foreclosed homes in defined area

Housing and Economic Recovery Act of 2008-HERA

• $3.92 Billion allocated for The Neighborhood Stabilization Program-NSP

• The State of Iowa was awarded $21,607,907– Entitlement Communities were awarded $10,579,231– Non-Entitlement Communities were awarded

$10,164,359

Housing and Economic Recovery Act of 2008-HERA

• NSP Entitlement Communities are Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Sioux City, Waterloo and West Des Moines

• Awarded Non-Entitlement Communities are Audubon, Boone, Burlington, Corning, Creston, Eldora, Fort Dodge, Guthrie Center, Hamburg, Jefferson, Knoxville, Oelwein, Ottumwa, Perry and Shenandoah

Housing and Economic Recovery Act of 2008-HERA

• Awarded NSP plans included a total of 73 activities resulting in the assistance of 391 housing units.

American Recovery and Reinvestment Act of 2009-ARRA

• Neighborhood Stabilization Program will receive $2 Billion in funding.

• HUD will provide program guidance on May 2, 2009.

• State of Iowa Application for

$15 Million due to HUD on

July 16, 2009.

American Recovery and Reinvestment Act of 2009-ARRA

• Applicant rating factors will include grantee capacity to execute projects, leveraging potential, and concentration of investment to achieve neighborhood stabilization.

• IDED is working with Iowa communities on preparing “shovel ready” projects for our NSP 2009 application.

ARRA will introduce changes to HERA

• Eligible Applicants-States, Units of local Governments, Nonprofit Organizations, and Consortia of Nonprofit Organizations

• At least 50% of funds must be spent within 2 years. Remaining funds must be spent within 3 years of availability.