Neighborhood Stabilization Program
On June 30, 2008, Congress appropriated funds under the Housing and Economic Recovery Act (HERA), for the newly-created Neighborhood Stabilization Program (NSP), in order to assist states and local governments with the redevelopment of abandoned and foreclosed homes in response to the foreclosure crisis. In 2008, the Community Development Commission of the County of Los Angeles (CDC) was allocated $16,847,672 in NSP1 funding under HERA. Based on the program objective, the CDC developed two programs: Home Economic Recovery Ownership (HERO) and Infill Sites Rental Program (ISRP). The HERO Program made financing available to 101 low, moderate and middle-income families or individuals needing financial assistance to qualify for the purchase of a foreclosed home. Meanwhile the ISRP financed the acquisition and rehabilitation of nine multifamily properties, a total of 21 units, for the creation of rental housing to low-income persons.
In 2009, Congress appropriated NSP2 funds under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The CDC competed for NSP2 funds under the Recovery Act, but did not receive an allocation.
Most recently in 2010, Congress appropriated NSP3 funds under the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act). The U.S. Department of Housing and Urban Development (HUD) released a Notice in the Federal Register and the CDC applied, to later be awarded an allocation of $9,532,569 in NSP3 funds. These funds shall be used towards the continued acquisition and rehabilitation financing of vacant foreclosed properties for the creation of rental housing for low-income persons. The properties will be located within approved census tract areas of Hawaiian Gardens and must be a 1-4 unit property. The selected Developer(s) must agree to operate the housing at affordable rents for a period of 55 years. When rehabilitation is complete, the properties will be available for lease, and listed under the Housing Resource Center "Find Rental Housing" section.
To see the L.A. Urban County NSP Action Plan, please go to:
To read the Federal HERA regulations, and see a list of other eligible jurisdictions that may have NSP funds, please go to:
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