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<br />Federal Neighborhood Stabilization Program (NSP) <br />October 2008 <br /> <br />1. Back2:round: <br />a. Title ill of Division B of the Housing and Economic Recovery Act, 2008 (HERA) <br />b. Section 2301 - Emergency Assistance for the Redevelopment of Abandoned and <br />Foreclosed homes <br />c. HUD has named it the Neighborhood Stabilization Program or NSP <br /> <br />2. Re2:ulations: <br />a. Treated as CDBG funds, all CDBG regs apply, <br />i. Environmental <br />ii. Prevailing Wage <br />iii. Historic Review <br />iv. Uniform Relocatio/l04(d) <br />v. Program Income and Real Property <br />b. HERA alters several key CDBG provisions, such as: <br />i. Income allowed up to 120% AMI <br />ii. Shortened Citizen Participation Program <br />iii. Limited use of funds <br />iv. Land Banking <br />v. 104(d) Unit Replacement not required <br />vi. New housing construction is eligible <br />vii. Full Rehabilitation standards <br />viii. No-profit provision placed on developers, lender, local govt, etc. <br /> <br />3. Allocations: <br />a. Anoka County $2,377,310 <br />b. No less than 25% of allocation or $594,330 must serve households below 50% <br />AMI <br />c. Considered a Special Allocation ofthe 2008 Program Year and requires that <br />Anoka County Amend its 2008 CDBG Action Plan. <br /> <br />4. Local Distribution: <br />a. NSP requires that Anoka County must target funds to give priority emphasis and <br />consideration to areas with greatest need, including those: <br />i. With the greatest percentageofhome foreclosures <br />ii. With the highest percentage of homes financed by a subprime mortgage <br />related loan; and <br />111. Identified as likely to face a significant rise in the rate of home <br />foreclosures <br />b. HUD has directed that funds not be committed on a city level but further target <br />neighborhoods or census tracks identified <br />c. HUD was required to determine greatest need for allocation to grantee; grantees <br />are required to determine greatest need on local level. <br />