City of Dallas Neighborhood Stabilization Program
Down Payment Assistance
City of Dallas NSP
Location Served: Dallas, TX
Provider: Texas Department of Housing and Urban Development
Approved Lender: New American Funding
Neighborhood Stabilization Program
The Neighborhood Stabilization Program was created by Congress to help cities, counties and states resolve community issues that have resulted in our nation’s mortgage foreclosure crisis.
The Department of Housing and Urban Development (HUD)’s Neighborhood Stabilization Program (NSP) offers grants to states and local communities to help them purchase the foreclosed or abandoned homes. When states and local communities receive NSP grants, they renovate, resell or redevelop the homes in order to stabilize neighborhoods and reduce the value decline of existing homes in the same neighborhood. The HUD’s NSP is authorized under Title III of the Housing and Economic Recovery Act of 2008.
Funds from the NSP1 program may be used to:
- Provide financing methods for purchase and redevelopment of foreclosed homes and residential properties
- Obtain and restore homes and residential properties abandoned or foreclosed
- Set up land banks for foreclosed homes
- Demolish broken and deteriorating structures
- Rebuild demolished or vacant properties
Grants provided by the NSP1 are awarded on a formula basis to state, local, and territorial governments. The NSP1 allows those who are granted funding 18 months from the date HUD signed their grant agreements to obligate these funds and four years to disburse their grant awards.
Also authorized by the Recovery Act was the establishment of the NSP Technical Assistance (NSP-TA) program. This program was designed to increase the capabilities of NSP grantees and the enactment of their programs. The Recovery Act set aside $50 million of the $2 billion awarded to the NSP for this purpose. Eligible applicants for competitive NSP-TX awards include states, units of general local government, nonprofit organizations, and other organizations skilled in providing technical assistance to NSP grantees.