Neighborhood Stabilization Program (NSP)
The federal Neighborhood Stabilization Program (NSP) provides funding to projects located in areas of greatest need to acquire, rehabilitate, and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. All activities funded by NSP must benefit low, moderate, and middle-income persons whose income does not exceed 120 percent of the area median income.
The NSP administration and operations in Illinois will be enhanced by IHDA's expertise with various federal and state housing programs, including the HOME Investment Partnership program, Low Income Housing Tax Credit program, Project Based Section 8 Rental Assistance, the Illinois Affordable Housing Trust Fund, the American Recovery and Reinvestment Act (ARRA) resources of the HUD Tax Credit Assistance Program, and the U.S. Treasury Department's Section 1602 Exchange Program.
As the state's lead agency for the federally mandated Consolidated Plan and state required annual Comprehensive Housing Plan, IHDA ensures NSP activities are coordinated to address the housing needs of underserved priority populations throughout state.
For general information on the State of Illinois NSP please contact:
Tiesha Vernon, NSP Department Assistant II at IHDA at (312) 836-5323 or firstname.lastname@example.org
View the NSP Rent and Income Limits.
View the complete list of HUD NSP Grantees in the State of Illinois.
IHDA is required to submit progress reports to the U.S. Department of Housing and Urban Development (HUD) on a quarterly basis. See reports below.
The initial funding for NSP Round 1 is authorized under Title III of the Housing and Economic Recovery Act of 2008 (HERA). Grant funds under NSP 1 may be allocated for eligible activities including purchase, rehabilitation, and redevelopment of foreclosed or abandoned homes and property for resale or rental. The goal is to stabilize neighborhoods and stem the decline of home values. Grantees for NSP 1 are states and units of general local government.
On November 12, 2009, Governor Pat Quinn designated IHDA as lead administrator for the State of Illinois' Neighborhood Stabilization Program. The Illinois Department of Human Services (IDHS) was the lead entity for the administration of the program during the initial stage of planning, development, application, and sub-grantee selections.
The State of Illinois was approved for the NSP 1 grant award of $53,113,044 by HUD in March 2009. Funding under NSP 1 was required to be obligated for eligible activities within 18 months of the HUD NSP Grant award and fully expended within four years.
- All activities funded by NSP must benefit low, moderate, and middle-income persons whose income does not exceed 120 percent of the area median income.
- At least 25 percent of the funds awarded under NSP for the redevelopment of abandoned or foreclosed homes or residential property will be used to house individuals or families whose income does not exceed 50 percent of the area median income. However, the state has set an additional goal to target up to 40 percent of the funds to benefit households whose income does not exceed 50 percent of the area median income.
- NSP funds cannot be used to prevent foreclosures.
View the State of Illinois Substantial Amendment with Supplemental Attachments - Neighborhood Stabilization Program (NSP) Action Plan – Approved January 30, 2009.
View the revisions to the Substantial Amendment to the State of Illinois Neighborhood Stabilization Program (NSP) Action Plan – Approved December 8, 2009.
The State of Illinois Neighborhood Stabilization Program (NSP) has designated 17 organizations or units of local government to receive funding under the state's NSP activities. View a listing of selected NSP1 sub-grantees. Individuals and organizations interested in working on NSP in these communities should contact the organizations listed.
HUD announced Round 3 of NSP in September of 2010. Funding for NSP 3 is authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act. NSP 3 provides $1 billion nationally to states and communities in an effort to stabilize local communities and overturn the results of the foreclosure crisis. As with NSP 1, Round 3 provides funding to projects located in areas of greatest need to acquire, rehabilitate and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities. Grant funds awarded under NSP 3 may be allocated for eligible activities which include purchase, rehabilitation and redevelopment of properties which have been abandoned, demolished or foreclosed upon in HUD designated areas of greatest need.
The State of Illinois was allocated an NSP 3 grant award in the amount of $5 million. Under NSP 3, grantees must expend at least 50 percent of allocated funds within two years of the date the funds become available to the grantees and expend 100 percent of such funds within three years of such date. All activities funded by NSP 3 must:
- provide or improve permanent residential structures that will be occupied by a household whose income is at or below 120 percent of the area median income
- expend at least 25 percent of the funds awarded to house individuals or families whose incomes do not exceed 50 percent of the area median income
The State of Illinois submitted a Substantial Amendment to the 2010 Consolidated Plan for the NSP 3 Program to HUD on March 1, 2011 outlining the NSP 3 target areas and eligible activities as required under the program regulations. The State of Illinois NSP3 Grant Agreement was approved by HUD and executed on March 15, 2011. Please refer to our NSP3 Action Plan for a more detailed timeline and general information regarding eligible entities and criteria for final section of development partners and targeted areas of greatest need.
View a list of NSP3 Subgrantees.