Input Session on the Neighborhood Stabilization Program (NSP)

Wednesday, October 15, 2008
1:00 p.m. - 4:00 p.m.
Thompson Conference Center (TCC site)
Auditorium - Room 1.110
2405 Robert Dedman Drive
Austin, Texas

Final passage by the Senate of HR 3221 occurred on July 26, 2008. The President signed the bill into law on July 30, 2008. Title III of the bill instituted the Neighborhood Stabilization Program (NSP) which provides funds for the redevelopment of abandoned and foreclosed upon homes and residential properties. HUD has recently released the regulations that will govern the program as well as the funding allocations. The total of funds directed for Texas is $178,143,197. Specific designated local entitlement communities in Texas will directly receive $76,146,349 of that allocation, with the balance of $101,996,848 directed to the State of Texas. The State of Texas is required to submit a Plan to HUD by December 1 for how the $101,996,848 in funds will be utilized and programmed.

TDHCA would like to gather as much public input as possible on how these funds can be most efficiently utilized and distributed to maximize their impact in Texas and is hosting an Input Session as noted above to gather that input. Interested parties are strongly encouraged to attend.

You are encouraged to review information relating to the Program prior to attending the Input Session. A brief summary of program information follows and more detailed information can be found on HUD's Web site for the NSP at: http://www.hud.gov/offices/cpd/communitydevelopment/programs/neighborhoodspg/.

Please RSVP to Michele Atkins (512-475-3916) or michele.atkins@tdhca.state.tx.us and confirm your attendance.

Neighborhood Stabilization Program (NSP)

Bullets below provide several broad attributes of this program (excerpted from a summary by National Council of State Housing Agencies):

Requires all funds be used with respect to individuals and families whose income does not exceed 120 percent of area median income (AMI).
Requires that at least 25 percent of the funds be used for the purchase and redevelopment of homes and properties that will be used to house individuals and families with incomes not greater than 50 percent of AMI.
Requires states and local governments to give priority emphasis and consideration to areas with the greatest need, including those: with the greatest percentage of home foreclosures, the highest percentage of subprime mortgages, and those at risk of increased foreclosures.
Directs states and local governments to use their allocation within 18 months of receipt.
Allows funds to be used for establishing financing mechanisms for purchase and redevelopment of foreclosed homes, purchasing and rehabilitating properties that have been abandoned or foreclosed, establishing land banks for foreclosed homes, demolishing blighted structures, and redeveloping demolished or vacant properties.
Creates a five-year reinvestment period in which revenue from the sale, rental, redevelopment, rehabilitation, or other eligible use in excess of the cost to acquire and rehabilitate the home or property must be used by the state or locality in accordance with the provisions of this Act.
No matching funds are required.

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Erica Garza

512-936-7875

ORCA presents the first Texas-wide HomeTown Competitiveness Academy! November 12-14, 2008 Norris Conference Center , Austin, Texas

The event is a great value for rural Texans who want to learn strategies to transform their communities. Tuition is $200 per person for groups of two or more from the same community, or $250 if only one community member attends. Register online by October 24, 2008 at The Heartland Center.

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