Neighborhood Stabilization Program: Round 1
Background & Neighborhoods Selected
The first round of Neighborhood Stabilization Program funding (NSP1) was authorized under Division B, Title II of the Housing and Economic Recovery Act (HERA) of 2008. The U.S. Department of Housing and Urban Development allocated $3.92 billion to 309 grantees, comprised of 55 states/territories and 254 local governments on a formula basis. The City of Cincinnati was awarded more than $8.3 million in NSP1 funding. To determine the most strategic use of the first round of Neighborhood Stabilization funding (NSP1), the City used methods outlined by the U.S. Department of Housing and Urban Development to determine the geographic areas in greatest need. Criteria included areas with the greatest percentage of home foreclosures, the highest percentage of homes financed by a subprime mortgage-related loan, and those likely to face a significant rise in foreclosures. The city successfully expended 100% of its NSP1 allocation prior to the March 17, 2013 HUD expenditure deadline.
NSP1 funding has been strategically targeted to 10 neighborhoods:
East Price Hill
West Price Hill
The City worked with each neighborhood to ensure that NSP activities addressed the priorities identified by each community and provided the best use for the funds as derived from a HUD-supplied formula. To ensure completion of NSP activities in the time allotted, the respective Community Development Corporations (CDCs) are responsible for rehabilitation, redevelopment and sale of properties. The CDCs also assist in identification of properties for demolition.
NSP funds are being used to achieve three primary goals:
housing purchase and redevelopment
The City $8.3 million Neighborhood Stabilization Program (NSP) award obligated 100% of its NSP funds a month prior to HUD's 18-month deadline. The City is on track to expend the funds as mandated before the March 2013 cut-off date.
Housing Purchase & Redevelopment
NSP is designed to promote the sale, rental or redevelopment of abandoned and foreclosed-upon vacant homes. The acquisition component of the project is now complete. Once the rehabilitation and construction of these units is complete, these homes will remain affordable to individuals or families whose incomes do not exceed 120% of Area Median Income (AMI).
Homebuyer Assistance Program & Affordable Housing
NSP's Homebuyer Assistance (NSPHA) provides up to $14,999 of assistance to low-, moderate-, and middle-income homebuyers to purchase single-family homes that have been rehabbed with NSP funds. Homebuyers at or below 120% AMI are eligible to receive help with downpayment and closing costs, and potentially may receive a principle write-down. Twenty-five percent of NSP funds are earmarked to benefit individuals or families at or below 50% AMI.
Removal of blighted buildings leads to stabilization and increased community safety, better property values and livability of neighborhoods. Monthly Public Nuisance Hearings are conducted to garner community input while determining if abandoned buildings are such a nuisance that demolition is warranted. Demolition of structures in NSP neighborhoods takes place only after standard code enforcement activities have been exhausted.