Frequently asked questions
Neighborhood Stabilization Program (NSP)
NSP funding is intended to stabilize neighborhoods. To achieve this, state and local governments can do the following:
- buy abandoned or foreclosed homes
- redevelop demolished or vacant properties
- demolish or rehabilitate abandoned, foreclosed, or blighted properties
- offer down payment and closing cost assistance to low- to moderate-income homebuyers
- reuse properties for affordable rental housing
- create "land banks" to assemble, temporarily manage, and dispose of vacant land (NSP1 only)
The State of Illinois NSP1 and NSP3 grant funds have already been allocated to the subgrantees for the implementation of NSP eligible activities. Subgrantees should be contacted directly for program specific details and funding availability. See list of State of Illinois Subgrantees.
NSP1 funds must be expended by March 2013. For NSP3 funds, 50 percent of the grant funds must be expended by March 12, 2013 - two years from the HUD NSP3 Grant Agreement. All NSP3 grant funds must be expended by March 15, 2014 - three years from the HUD NSP3 Grant Agreement.
See the list of HUD NSP Allocated Entitlement Jurisdictions in the State of Illinois.
Target areas for the State NSP1 and NSP3 programs can be found in the Substantial Amendment to the NSP Action Plan. Click here for the NSP1 Action Plan. Click here for the NSP3 Action Plan.
The Neighborhood Stabilization Program Resource Exchange can answer your additional questions.