Nearly 60 grantees were awarded $2 billion under the Neighborhood Stabilization Program (NSP) funds, announced the Department of Housing and Urban Development on Jan. 15.
Florida communities and organizations received the largest amount, nearly $349 million. California received more than $318 million, with the city of Los Angeles receiving $100 million. Michigan was next with nearly $224 million going to the Michigan State Housing Development Authority, which is working with 12 communities—Battle Creek, Benton Harbor, Detroit, Flint, Grand Rapids, Hamtramck, Highland Park, Kalamazoo, Lansing, Pontiac, Saginaw, and Wyandotte.
The Community Builders (TCB), a prominent nonprofit developer, is one of the big recipients, receiving $78 million in NSP funding.
In its application, TCB identified a set of prototype projects, all related to the redevelopment or construction of multifamily housing that was consistent with program objectives. Its proposal called for quickly identifying multifamily projects that meet the funding criteria and working with local and state officials to secure preliminary financing commitments and aggressively redeveloping the targeted multifamily properties.
TCB officials said they were funded to work in Illinois, Indiana, Massachusetts, North Carolina, New York, Ohio, Pennsylvania, Virginia, and the District of Columbia.
This round of grants is being awarded competitively to applicants with the most innovative ideas to rebuild local communities while demonstrating they have the capacity to deliver on their plans.
The grants will help build on the work being done by state and local governments and nonprofit developers to acquire land, demolish or rehabilitate abandoned properties, and/or to offer downpayment and closing cost assistance to low- and middle-income homebuyers. Grantees can also create land banks to assemble, temporarily manage, and dispose of foreclosed homes.
Funded under the American Recovery and Reinvestment Act, the NSP was created to help redevelop communities hit by foreclosures and vacant homes.
Last year, federal housing officials awarded nearly $4 billion in NSP formula funds to more than 300 grantees nationwide to help communities respond to the housing crisis.
Another $50 million was awarded in technical assistance grants.
