HUD’s Neighborhood Stabilization Program Can Be a Good Resource for AFI-funded IDA Projects

The HUD Neighborhood Stabilization Program (NSP) provides funds to states and cities to help with the foreclosure crisis. Through NSP almost $4 billion is available to states and cities for use in purchasing and rehabilitating foreclosed homes. After purchase, the homes must ultimately be occupied by low-, moderate-, and middle-income families. This means that the low-income families saving in AFI-funded IDAs may soon have more opportunities to own or rent a home. Be sure to check with your city or state to see if they received NSP funds and, if so, how they are using them.

For AFI grantees, it is important to note that it is not possible to count federal NSP funds as the required non-federal cash match for an AFI grant. Though NSP is similar to the Community Development Block Grant (CDBG), it does not receive the special treatment that CDBG funds enjoy. If you have any questions on this topic, please contact the AFI Resource Center at 1-866-778-6037 or via email at info@idaresources.org.

This article originally ran in the IDAresources.org Update Newsletter on 05/14/09 and is available for archival purposes.
For updated information on asset building and the AFI program, please see www.IDAresources.org.