NSP Laws, Regulations, and Federal Register Notices

This page contains the authorizing laws, regulations, and Federal Register Notices for the Neighborhood Stabilization Program. View a PDF of all NSP Laws and Federal Register Notices.

HUD provides guidance on NSP through NSP Policy Alerts.

Laws

Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act: Additional Assistance for Neighborhood Stabilization Program

This Act is the authorizing legislation for the third round of funding for NSP. The law allocates $1 billion in NSP3 funding. It also amends the 25 percent set-aside requirement by removing the restriction that allows only abandoned or foreclosed upon homes or residential properties to be used to meet this requirement. Instead, NSP grantees may also use vacant or demolished property to meet the set-aside requirement as well.

Date Published: July 2010

Division A, Title XII of the American Recovery and Reinvestment Act of 2009 - Community Development Fund

This Act is the authorizing legislation for the second round of funding for NSP. The law allocates $1.93 billion in NSP2 funding. It also includes several major changes to the program, some of which affect NSP1 requirements and some of which only apply to NSP2.

Date Published: February 2009

Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008 - Emergency Assistance for the Redevelopment of Abandoned and Foreclosed Homes

This Act is the authorizing legislation for NSP. The law allocates $3.92 billion in NSP1 funding. It also includes requirements related to allocations, timeliness, eligible activities, income eligibility, national objectives, program income, relocation, purchase discounts, affordability and sales price, and other requirements.

Date Published: July 2008

Regulations

Since NSP is a component of the Community Development Block Grant (CDBG) Program, the CDBG regulatory structure is the platform used to implement NSP. The regulations created by the Office of the Assistant Secretary of Community Planning and Development that pertain to Community Development programs are contained within 24 CFR part 570 - Community Development Block Grants. NSP is governed by CDBG regulations except where specifically waived.

Federal Register Notices

Notice of Formula Allocations and Program Requirements for NSP1 and NSP3 Formula Grants; Amendment: Updated Foreclosure Data - May 21, 2013

On October 19, 2010, HUD published a notice regarding formulation allocations made under two NSP grant (formula grant) programs - NSP1 and NSP3. This document makes changes to the notice to allow NSP1 and require NSP3 grantees to use an updated foreclosure needs map and associated needs index score in selecting geographic target areas.

Date Published: May 2013

NOFA for NSP2 Under the American Recovery and Reinvestment Act, 2009: Announcement of Availability of Updated Foreclosure Information - May 21, 2013

On May 4, 2009, HUD posted its FY 2009 NSP2 NOFA. This document makes changes to the NSP2 NOFA to allow NSP2 grantees to use an updated foreclosure needs map and associated needs index score in selecting geographic target areas.

Date Published: May 2013

NSP Closeout Notice - November 27, 2012

This Notice describes closeout requirements that apply to and additional regulations waived for grantees receiving grants under the three rounds of funding under NSP.

Date Published: November 2012

Note: On October 19, 2010, HUD issued the Unified NSP1 and NSP3 Notice which provides unified program requirements for grantees of the two formula NSP grant programs, NSP1 and NSP3. The Unified Notice supersedes the previous NSP1 and Bridge Notices unless the Unified Notice specifies otherwise. The Unified Notice also contains program updates applicable to NSP2.

Unified NSP1 and NSP3 Notice - October 19, 2010

This Notice provides unified program requirements for grantees of the two formula NSP grant programs, NSP1 and NSP3. The Notice supersedes the previous NSP1 and Bridge Notices unless the Unified Notice specifies otherwise. The Notice also contains program updates applicable to NSP2. This Notice advises the public of the allocation formula and allocation amounts, the list of grantees, alternative requirements, and the waivers of regulations granted to grantees under Section 2301(b) of the Housing and Economic Recovery Act of 2008 (HERA), as amended, and a third round of NSP funding (NSP3) provided under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010, approved July 21, 2010) (Dodd-Frank Act). This Notice also notes statutory issues affecting program design and implementation.

Date Published: October 2010

Notice of NSP Reallocation Process Changes - August 23, 2010

This Notice provides a description of the applicable corrective actions and recapture process for all NSP1 grantees. This Notice advises that HUD is revising the recapture policy of the October 6, 2008 NSP1 Notice, as amended, in a manner that affects the consequences of failing to meet the 18 month deadline for using NSP1 funds.

Date Published: August 2010

Notice of Change in Definitions and Modification to NSP - April 9, 2010

This Notice implements a program change resulting from an amendment to HERA made by the Helping Families Save Their Homes Act of 2009 (Public Law 111-22, approved May 20, 2009) (HFSHA), and which change was made retroactive to the date of enactment of HERA - July 30, 2008. This Notice also advises of changes to the October 6, 2008 Notice's definitions for "Abandoned" and "Foreclosed" property to assist in better targeting NSP assistance for the purchase, rehabilitation, or redevelopment of abandoned and foreclosed properties.

Date Published: April 2010

Notice of Definition Revision to NSP2 NOFA for FY 2009 - April 2, 2010

This Notice advises of changes to the NSP2 NOFA Appendix 1 definitions for "abandoned" and "foreclosed" property to assist in better targeting NSP2 assistance for the purchase, rehabilitation, or redevelopment of abandoned and foreclosed properties.

Date Published: April 2010

NSP2 NOFA Correction - January 21, 2010

This Notice contains the third correction to the NSP2 2009 NOFA. The correction was issued January 21, 2010. HUD corrected the NSP2 NOFA by Notices posted on the HUD website on June 11, 2009 and November 9, 2009, and announced the corrections by Federal Register publications published on June 17, 2009 (74 FR 28715) and November 16, 2009 (74 FR 58973), respectively. The January 21, 2010 Notice corrects the NSP2 NOFA to permit HUD to specify the deadline date for submission of consortium funding agreements in the transmittal letter for the NSP2 grant agreement, which allows the submission deadline to occur after obligation of grant funds.

Date Published: January 2010

NSP2 NOFA Correction - November 9, 2009

This Notice contains the second correction to the NSP2 NOFA. This correction was issued November 9, 2009. The NSP2 NOFA was first corrected by a Notice posted on the HUD website and announced on June 11, 2009 (74 FR 28715). The November 9, 2009 Notice makes further corrections to the NSP2 NOFA to: (1) correct an inconsistency in the NSP2 NOFA regarding when the lead member of a consortium must enter into consortium funding agreements with consortium members; and (2) extend the deadline for submission of such agreements to January 29,2010. This Notice only affects applications for funding that have already been submitted to HUD by consortium applicants.

Date Published: November 2009

NSP1 Federal Register Bridge Notice - June 19, 2009

This Notice provides substantive revisions to the October 6, 2008 Notice, primarily as a result of changes to NSP made by the American Recovery and Reinvestment Act of 2009. This Notice also makes a number of non-substantive technical corrections or clarifications to the October 6, 2008 Notice. It includes revisions regarding land banks, activity eligibility, discount requirements, program income, appraisals, loan adherence to sound lending practices, waivers for non-HUD approved counselors, leasing to Section 8 voucher-holders, tenant protections, citizen comment period for Substantial Amendments, removal of job creation national objective, and other program requirements. The Notice is effective as of June 19, 2009.

Date Published: June 2009

NSP2 NOFA Correction - June 11, 2009

This Notice contains the first correction to the NSP2 NOFA. This correction was issued June 11, 2009. Corrections include changes to the geographic threshold requirement, eligible use for land banks, and the required purchase discount.

Date Published: June 2009

NSP2 NOFA - May 4, 2009

This Notice of Fund Availability (NOFA) for NSP2 under the American Recovery and Reinvestment Act provides information on the application requirements, NSP2 program requirements for all recipients, recommended green elements, application checklists, calculation rubric, and certifications.

Date Published: May 2009

NSP2 General Section - December 29, 2008

This Notice contains the HUD's FY 2009 NOFA; Policy requirements and General Section to HUD's FY 2009 NOFAs for Discretionary Programs. This Notice provides prospective applicants for HUD's competitive funding with the opportunity to become familiar with the General Section of HUD's FY 2009 NOFAs, in advance of the publication of the FY 2009 NOFAs. NSP2 funds were awarded on a competitive basis in FY 2009.

Date Published: December 2008

NSP1 Federal Register Notice - October 6, 2008

This Notice advises the public of the allocation formula and allocation amounts, the list of grantees, alternative requirements, and the waivers of regulations granted to grantees under Title III of Division B of the Housing and Economic Recovery Act of 2008, for the purpose of assisting in the redevelopment of abandoned and foreclosed homes under the Neighborhood Stabilization Program.

Date Published: October 2008