Neighborhood Stabilization

This federal program purchases and redevelops foreclosed and abandoned homes to stabilize communities.

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About the Neighborhood Stabilization Program

The Neighborhood Stabilization Program (NSP) was established by the U.S. Department of Housing and Urban Development (HUD) to purchase and redevelop foreclosed and abandoned homes to stabilize communities. The Neighborhood Stabilization Program 1 (NSP1) provided $14 million in Housing and Economic Recovery Act of 2008 funds to the City of Minneapolis. The Neighborhood Stabilization Program 2 (NSP2), authorized under the American Recovery and Reinvestment Act (the Recovery Act) of 2009, provided grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. Minneapolis submitted an application for the Neighborhood Stabilization Program 2 funds under the American Recovery and Reinvestment Act of 2009 as lead applicant in a consortium with Hennepin County and the City of Brooklyn Park. Minneapolis will submit applications for $600,000 to Minnesota Housing Finance Agency and for $2,671,275 to HUD in Neighborhood Stabilization Program 3 (NSP3) funds under HERA, as amended, and the Recovery Act, as amended, and an additional allocation of funds provided by the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).