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NSP Programs for Developers/Investors
The Neighborhood Stabilization Program (NSP) may be an opportunity for you and your development team. It is a unique rehab program designed to create affordable, high-quality homeownership and rental housing in neighborhoods hit hardest by the national foreclosure crisis.
Qualified developers can receive no interest, forgivable loans for eligible properties in return for a term of affordability that runs with the property for income qualified tenants and occupants. The length of this affordability period is in direct proportion to the amount of rehab-subsidy the property receives (see table below).
| Funded Activity | Minimum Period of Affordability in Years |
| Rehabilitation of existing housing per unit amound of NSP funds: Under $15,000 |
5 |
| $15,000 to $40,000 | 10 |
| Over $40,000 or rehabilitation involving refinancing | 15 |
| New Construction | 20 |
Under NSP, the income qualifications for most properties are rather inclusive with limits at individuals earning up to 120% of the Area Median Income (AMI). However, the City is obligated to provide housing opportunities for individuals earning 50% or lower than the AMI using funding equal to no less then 25% of our entire grant award. Investors will be asked to work with us in achieving this goal.
FY 2009 Income Limits for 120% of HUD Area Median Income
| Number in Household | Income Limit |
| 1 | $66,950 |
| 2 | $76,500 |
| 3 | $86,100 |
| 4 | $95,650 |
| 5 | $103,300 |
| 6 | $110,950 |
| 7 | $118,600 |
| 8 | $126,250 |
FY 2009 Income Limits for 50% of HUD Area Median Income
| Number in Household | Income Limit |
| 1 | $27,900 |
| 2 | $31,900 |
| 3 | $35,850 |
| 4 | $39,850 |
| 5 | $43,050 |
| 6 | $46,250 |
| 7 | $49,400 |
| 8 | $52,600 |
Along with the income eligibility requirement for occupants, the affordability period will be implemented by a limit to the maximum allowable rent for income properties. The maximum allowable rents, less an allowance for tenant-paid utilities, will not exceed the lesser of (a) "High HOME Rent," thirty percent (30%) of the monthly income of a household earning sixty-five percent (65%) of area median income adjusted for the number of bedrooms in the unit, or (b) the HUD Fair Market Rent. For rehabbed units with income restrictions at or below 50% AMI, the Low HOME Rent Limit will be used.
March 2009 HOME PROGRAM RENTS (Utilities Included)
| Efficiency | 1-Bedroom | 2-Bedroom | 3-Bedroom | 4-Bedroom | 5-Bedroom | 6-Bedroom | |
| Low HOME Rent Limit: 50% | $656 | $747 | $896 | $1,036 | $1,156 | $1,275 | $1,394 |
| High HOME Rent Limit: 120% | $656 | $756 | $922 | $1,100 | $1,167 | $1,345 | $1,517 |
Final FY 2009 Fair Market Rents by Unit Bedrooms
| Efficiency | 1-Bedroom | 2-Bedroom | 3-Bedroom | 4-Bedroom |
| $656 | $756 | $922 | $1,100 | $1,167 |
Eligible properties must be located in a specific neighborhood and within a HUD-designated, eligible census tract. Click here to see the map.
Location, however, is not the only program requirement. Developers are strongly encouraged to inquire about and/or apply for assistance and to determine a property's eligibility well before making an offer to purchase. In an effort to maximize available resources and encourage sustainable housing development, participating developers may also be eligible for funding for lead abatement or energy conservation improvements.
For a full disclosure of program requirements, please email the City's Division of Neighborhood & Housing Development.
These program requirements are pursuant to the Federal source of funding. For complete information on the Federal requirements,
please click here.
