How Does NSP Work?
NSP is a component of the Community Development Block Grant (CDBG). The CDBG regulatory structure is the platform used to implement NSP and the HOME Investment Partnership Program provides a safe harbor for NSP affordability requirements.
Kentucky’s NSP sub-grantees each develop their own programs and funding priorities. However, NSP sub-grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed residential properties that will be used for households whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of the area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.
For a chart of counties and income levels, click here
What Kinds of Activities Take Place With NSP?
NSP funds may be used for activities that include, but are not limited to:
Establishing financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
Purchasing and rehabilitate homes and residential properties abandoned or foreclosed;
Establishing land banks for foreclosed homes;
Demolishing blighted structures;
Redeveloping demolished or vacant properties
Additional information may also be obtained by contacting the Kentucky Department for Local Government (502) 573-2382 or (800) 346-5606.
|