Neighborhood Stabilization Program Round 2 - Consortia
Michelle Winters
LISC
Neighborhood Stabilization Program Background
NSP 1 established in Housing and Economic Recovery Act of 2008 $3.92 billion
NSP 2 established in the American Recovery and Reinvestment Act of 2009 $1.93 billion
Purpose is for purchase and rehabilitation of foreclosed and abandoned properties
Purpose is NOT foreclosure prevention Primarily targeted to families at 120% of AMI 25% of funds must be for families at 50% of AMI Long term affordability – at least HOME standards Discounted purchase price requirements
NSP Eligible Uses
New items for NSP 2 are underlined: Financing Mechanisms for purchase and
redevelopment of foreclosed homes and residential properties
Purchase, Rehab and Resale of abandoned or foreclosed homes and residential properties
Establish and Operate Land Banks for foreclosed homes and residential properties
Demolish Blighted Structures Redevelop demolished or vacant properties as
housing
Major Differences Between NSP1 and NSP2
NSP 1 NSP 2Allocation Formula Competition
Eligibility Governments Governments, Nonprofits, and Consortia, with for-profit partners
Timing of Use of Funds
All funds obligated within 18 months of the grant agreement
50% expended within 2 years of receipt, 100% within 3 years
Discount Requirements
15% average, 5% minimum
(soon to be updated to 1%)
Recently updated to 1% minimum
Geographic Targeting
Grantees may decide targeting Specific census tract criteria
Demolition No limit 10% limit; no public housing demolition
Green Rehab Recommended Required
NSP 2 NOFA Requirements
Minimum of $5 million and 100 homes Applicants must demonstrate capacity to
perform proposed activities 75 units of each type of proposed activity within
prior 24 months Geographic eligibility is deeply targeted
Average of 18 on a 1-20 needs scale
NSP 2 NOFA Priorities
Revitalize target neighborhoods and reconnect with the economy, market, social networks, and metropolitan region
Rapidly arrest neighborhood decline Assure deep targeting to 50% of AMI Longest feasible continued affordability Optimize economic activity and jobs Leverage resources or remove destabilizing
influences Set aggressive and achievable goals Ensure accountability and citizen input
NSP 2 NOFA Priorities, Cont.
Coordinate planning and resources with other Federal priorities: energy efficiency and conservation, sustainable and transit-oriented development, metro-wide planning and coordination, improve public education, improve access to healthcare.
Consortia Applications
Consortia may include both public and private nonprofit entities Governments, nonprofits, housing authorities Applicants cannot be lead for more than one application, or in
more than one application for a target geography Government entities or HUD manage environmental reviews
Must be a single lead applicant Execute grant agreement and assume responsibility on behalf of
consortium for compliance with all program requirements
Consortia must collectively have the capacity to carry out proposed activities Defined as having done 75 units of each proposed activity in past
24 months
Consortia Applications
Single Integrated Program Application must reflect an overall consortium program
design NOT a collection of disparate programs
Must propose a single program including: Proposed activities and timeline Continued affordability standards Community outreach Performance and monitoring Leveraging funds Green building and rehab standards
Consortia Applications
Points awarded in application for activities that are consistent with established comprehensive, regional, multi-jurisdiction plan such as: Transportation Sustainable development Economic revitalization Floodplain management
Proposed activities must relate to and increase effectiveness of established plan for maximum points
For-Profit Partners
Firm commitment required with application All for-profit partners must be identified in
application Requires a cost analysis and a separate
written agreement with each partner
Consortia – Two Stage Process
Consortium Agreement submitted with the application Signed by all members Members must cooperatively carry out program Authorizes lead entity Authorizes internal audit function
Consortium Funding Agreement submitted by December 1, 2009 Authorizes govt. members to carry out environmental reviews Lead member enters into separate agreement with each member
of consortium Describes members’ specific activities, timetables, and other
program responsibilities/compliance
Bottom Line
HUD is encouraging regional applications, but it must be a truly regional program rather than a collection of local programs
Many decisions must be made prior to application – July 17th
NSP 2 Process
Applications are Due July 17th
HUD will execute consortium funding agreements no later than December 1
HUD must obligate all funds to recipients by September 30, 2010
Recipients must expend 50% within 2 years Recipients must expend 100% within 3 years
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