Both the NSP1 and NSP3 programs are closed to new applicants. The information contained on this webpage is for current grantees and maintained in order to meet federal program transparency requirements. Both NSP1 and NSP3 were one time funding opportunities provided by the US Department of Housing & Urban Development (HUD) and are NOT continuing annually funded programs.
On October 19, 2010, HUD released a Neighborhood Stabilization Program Three (NSP3) notice with the requirements for a new allocation of NSP funding that was authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Act provided $970 million in new NSP funds to states and local governments. To date, there have been two other rounds of NSP funding; the Housing and Economic Recovery Act of 2008 (HERA) provided $3.92 billion and the American Recovery and Reinvestment Act of 2009 (Recovery Act) appropriated an additional $2 billion. Like those earlier rounds of NSP grants, these targeted funds were to be used to purchase foreclosed homes at a discount and to rehabilitate or redevelop them in order to respond to rising foreclosures and falling home values.
Although both NSP1 and NSP3 share similar program goals, NSP3 does contain additional requirements and restrictions over its predecessor NSP1 program. It should be noted that eligibility standards under NSP1 were considerably different than the eligibility standards under NSP3. Eligible projects under NSP1 were NOT necessarily eligible under NSP3.