The 2008 signing of the Housing Economic and Recovery Act provided $3.9 billion nationwide for the formation of the Neighborhood Stabilization Program (NSP).
Goals & Objectives
The NSP seeks to prevent future foreclosures by requiring housing counseling for families with household income at or below 120% of the area median income (AMI), receiving home buyer assistance. The agency seeks to protect future home buyers by requiring states and local grantees to ensure that new home buyers, under this program, obtain a mortgage loan from a lender who agrees to comply with sound lending practices.
Nassau County’s main objective is to stabilize neighborhoods that are significantly impacted by the foreclosure crisis. The county collaborates with not-for-profit and for-profit housing organizations and developers in revitalizing distressed communities to reach that goal.
In 2009, Nassau County's Office of Community Development (OCD) received nearly $10 million in NSP funds, $7,767,916 from the U.S. Department of Housing and Urban Development (HUD) and $1,697,577 from the New York State Housing Finance Agency. Additionally, OCD was awarded $1,365,000 from the New York State Affordable Housing Corporation (AHC) to assist in the purchase of the NSP homes.
Recent Additional Funding
On September 8, 2010, a press conference was held in the Village of Hempstead at a recently rehabilitated NSP home to announce a third round of funding in efforts to reverse the effects of the foreclosure crisis. The grants, funded through the HUD’s NSP provided Nassau County with an additional $2.1 million to help acquire, rehabilitate, or demolish foreclosed properties.
The funds address the crisis of rising foreclosures and falling home values. They provide targeted emergency assistance to state and local governments for acquisition and redevelopment of foreclosed properties that might otherwise become sources of abandonment and blight within their communities.