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Summary :Neighborhood Stabilization

Program 2 under

the American Recovery and

Reinvestment Act, 2009

Presented to the Lawndale Alliance byValerie F. Leonard on May 19, 2009

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Source: The following information is summarized from

http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp2_nofa.pdf

http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp2_nofa.pdfhttp://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp2_nofa.pdfhttp://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp2_nofa.pdfhttp://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/pdf/nsp2_nofa.pdf

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Particulars DATES: Issuance Date: May 4, 2009.

Application Deadline: July 17, 2009. Applications must be received via paper submissionto the Robert C. Weaver HUD Headquarters building by 5:00 p.m. Eastern DaylightTime.

FOR FURTHER INFORMATION CONTACT:Stanley Gimont, Director, Office of Block 2 Grant AssistanceDepartment of Housing and Urban Development451 Seventh Street, SW,Room 7286, Washington, DC 20410Telephone Number: 202-708-3587

Persons with hearing or speech impairments may access this number via TTY by calling theFederal Information Relay Service at 800-877-8339.

FAX inquiries may be sent to Mr. Gimont at 202-401-2044.(Except for the "800" number, these telephone numbers are not toll-free.)

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What is NSP 2? Continuation of NSP 1-to stabilize neighborhoods whose viability has

been and continues to be damaged by effects of properties that havebeen foreclosed upon and abandoned.

In 2008, Congress appropriated funds for neighborhood stabilization

under HERA.

In 2009, Congress appropriated additional neighborhood stabilizationfunds, which are the subject of this notice.

There will be two competitions. Up to $1.93 billion of NSP2 funds to carry out neighborhood

stabilization programs. Up to $50 million of NSP2 funds to provide technical assistance, to

provide capacity building of local communities receiving NSP1 or anyentity receiving NSP2 funding to carry out neighborhood stabilization.

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Eligible Uses Purchase and rehab of abandoned and foreclosed

properties for affordable rental and for-sale housing

Land banking of abandoned foreclosed properties

Demolish blighted structures

Redevelop vacant land or properties as affordable housing

Establish financing mechanisms for purchase and rehab of

abandoned foreclosed properties. Loan Loss Reserves

Shared Equity Loans

Soft Seconds

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Eligible Applicants State and Local Government Agencies

Nonprofits

Consortia of Nonprofits (Collaborations, Partnerships)

Note: For profits may partner with nonprofits.

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Threshold Requirements There are 10 Threshold Requirements. The most

important are outlined below

1. Must apply for a minimum of $5 million; bring at least100 foreclosed and abandoned properties back toproductive use or mitigate their harmful effects

2. Must target low-moderate income individuals asdefined by HUD

3. Must provide evidence of citizen participation; ensurethat individuals have equal access to informationregarding the programs

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Threshold Requirements, Cont4. Provide definitions of terms such as blighted structure,

and affordable rents ; include standards for rehab

5. Demonstrated organizational experience and capacity

you have successfully carried out and completedactivities eligible under this notice involving at least75 units of housing

a) housing counseling

b) or acquisition/disposition of housing

c) rehabilitation of housing as part of a neighborhoodstabilization, land banking, or community developmentprogram)

within the 24-month period immediately preceding thedate of this NOFA.

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Rating Factors Factor 1: Need/Extent of the Problem (40 points)

Target Geography (10 points)

Market Conditions and Demand Factors (30 points)

Factor 2: Demonstrated Capacity of the Applicant andRelevant Organizational Staff (40 points)

Past Experience (30 points) Management Structure (10 points)

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Rating Factors Factor 3: Soundness of approach (45 points)

Proposed activities (15 points)

Project completion schedule (5 points)

Income targeting for 120 percent and 50 percent ofmedian (5 points)

Continued affordability (5 points)

Consultation, outreach, communications (5 points)

Performance and monitoring (10 points)

Factor 4: Leveraging other funds, or removal ofsubstantial negative effects (10 points)

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Rating Factors Factor 5: Energy efficiency improvement and

sustainable development factors (10 points)

Factor 6: Neighborhood transformation and economicopportunity (5 points)

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Application Submittal Address NSP 2 Applications

Room 7286, Office of Block Grant Assistance, 451

Seventh St, SW, Washington, DC 20410.