Neighborhood Stabilization Program (NSP1 and NSP3)

The U.S. Department of Housing and Urban Development's new Neighborhood Stabilization Program (NSP) provides targeted emergency assistance to states and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight. Minnesota Housing is the grantee for the state in the amount of $38.8 million under NSP 1, and in the amount of $5 million for NSP3. Minnesota Housing's Funding Applications are now closed. Approved awardees can be viewed by clicking on the following link:
NSP1 Award Announcements
NSP3 Award Announcements

For basic information about the NSP Program, please review the NSP General Information Sheet, which will guide you to specific resources on this site.

State Subrecipients

Minnesota Housing sub granted NSP funds to local units of government experienced in administering CDBG funding.
NSP1 Subrecipient Contact List - updated February 9, 2011
NSP3 Subrecipient Contact List - updated March 14, 2011

Areas of Greatest Need
Minnesota Housing has targeted funds to give priority emphasis and consideration to areas with greatest need identified through a funding formula:

Areas with the greatest percentage of home foreclosures;
Areas with the highest percentage of homes financed by a subprime mortgage related loan; and
Areas identified as likely to face a significant rise in the rate of home foreclosures.

NSP Fund Uses

Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties
Purchase and rehabilitate homes and residential properties that have been abandoned or foreclosed, in order to sell, rent, or redevelop
Establish land banks for homes that have been foreclosed
Demolish blighted structures
Redevelop demolished or vacant properties

Ineligible Activities

Generally, if an activity is ineligible under CDBG, it is ineligible under NSP
Foreclosure prevention
Demolition of non-blighted structures
Purchase of properties not abandoned or foreclosed upon
Redevelopment for commercial purposes

General Program Information

Program Tools - This page includes the NSP and NSP3 Procedural Manual, Program Forms, Resources and NSP eNews Archive
NSP Program FAQs - revised June 8, 2009
Program Concept

Neighborhood Stabilization Program (NSP1)
Final NSP1 (2008 Substantial Amendment) Action Plan - revised January 12, 2009
NSP1 HUD Quarterly Progress Report - September 30, 2011
NSP1 Timeline
NSP1 High-Need Zipcodes
NSP1 Year-to-Date Obligations Report
NSP1 Partner Outreach/Overview (PowerPoint Presentation)

Neighborhood Stabilization Program (NSP3)
Final NSP3 (2011 Substantial Amendment) Action Plan - revised March 18, 2011
NSP3 HUD Quarterly Progress Report - September 30, 2011
NSP3 Timeline
NSP3 Maps

HUD NSP Information
HUD NSP Information
HUD FAQs
HUD NSP1 and NSP3 Approved Counseling Agencies
HUD NSP1 Notice
HUD NSP3 Notice
HUD NSP1 Bridge Notice
HUD Guidance on NSP1 and NSP3 Appliance Purchases
HUD NSP/FHA Memo 03.24.10
HUD Guidance NSP3 Attachment C - Recommended Energy Efficiency

Direct NSP HUD Grantee Websites
City of Minneapolis
City of St. Paul
Hennepin County
Anoka County
Dakota County

Other Potential Funding Sources
Department of Commerce
Department of Employment and Economic Development
Family Housing Fund
Greater Minnesota Housing Fund
Metropolitan Council

NSP Contact
Please contact Ruth Simmons for questions on the NSP Fund at 651-297-5146, ruth.simmons@state.mn.us.

Housing Resources

Quick Links

Neighborhood Stabilization Program (NSP1 and NSP3)