Neighborhood Stabilization Program
The Neighborhood Stabilization Program (NSP) was established by the federal government to stabilize communities that have suffered from foreclosures and abandonment. Within the City of Cincinnati, NSP funds are being used to redevelop foreclosed, abandoned and vacant residential properties. Additionally, NSP funds are being used to demolish condemned buildings after standard code enforcement activities have been exhausted.
NSP1: Funding Round 1
The first round of Neighborhood Stabilization Program funding (NSP1) was authorized under Division B, Title II of the Housing and Economic Recovery Act (HERA) of 2008. The Department of Housing and Urban Development (HUD) allocated $3.92 billion to 309 grantees, comprised of 55 states/territories and 254 local governments on a formula basis. The City of Cincinnati was awarded more than $8.3 million in NSP1 funding.
NSP2: Funding Round 2
The second round of Neighborhood Stabilization Program funding (NSP2) was authorized under the American Recovery and Reinvestment Act of 2009. The highly competitive NSP2 grant process awarded $1.93 billion to only 56 grantees nationwide, with preference given to consortia that leveraged resources. The City of Cincinnati applied for NSP2 funds as part of the Cincinnati-Hamilton County NSP2 Consortium. The Consortium, comprised of lead agency Hamilton County, the City, Cincinnati Metropolitan Housing Authority, Local Initiatives Support Corporation and The Model Group, was one of 33 regional consortiums selected. The Consortium was awarded more than $24 million in NSP2 funds.
NSP3: Founding Round 3
The third round of Neighborhood Stabilization Program funding (NSP3) was authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Through a formula allocation, the City of Cincinnati received $3.16 million of the additional $1 billion authorized by the Act. NSP3 funds will be used in targeted areas throughout the City where stagnant population growth, high unemployment, and a weak housing market have led to increased foreclosure and vacancy risk scores.