Neighborhood Stabilization Program
The U.S. Department of Housing and Urban Development (HUD)’s Neighborhood Stabilization Program (NSP) was established to stabilize communities that have suffered from foreclosure and abandonment. It is providing targeted emergency assistance to state and local governments to acquire and redevelop foreclosed and abandoned homes and residential properties that might otherwise become sources of blight within their communities.
Kentucky received its first allocation of NSP funds (NSP-1) of $37.4 million, through the Housing and Economic Recovery Act (HERA) of 2008.
Kentucky received an additional allocation of NSP funds (NSP-3) of $5 million, through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.
These targeted funds are being used to purchase foreclosed, abandoned and vacant properties at a discount and to rehabilitate or redevelop them to stabilize neighborhoods and stop declining home values. In determining Kentucky’s allocations, HUD followed Congress’ direction that grants be targeted to areas based on the number and percent of foreclosures, subprime mortgages and mortgage defaults and delinquencies. HUD took a data-driven approach to this process, relying on numerous data sets from government agencies and private sources.
For a complete list of Kentucky agencies participating in the program, click here.
||Analysis of Impediments to Fair Housing