What is the NSP?

The Neighborhood Stabilization Program or NSP is a federal program that was established by the Housing and Economic Recovery Act of 2008 (HERA).  It provides funding for the acquisition, rehabilitation, and redevelopment of abandoned or foreclosed properties.  The first phase of NSP (NSP1) provided $3.92 billion in funding to state and local governments.  The funds were distributed on a formula basis, which determined the areas of greatest need.  The American Recovery and Reinvestment Act of 2009 (ARRA) provided an additional $2 billion in NSP funding.  This second phase (NSP2) made two significant changes to the program.  First, funding was granted on a competitive basis as opposed to formula distribution. Second, in addition to state and local governments, non-profit agencies could also apply for NSP2 funding.  NSP has five eligible uses that include:

• establishment of financing mechanisms for purchase of foreclosed homes
• acquisition and rehabilitation of abandoned or foreclosed homes
• land banking of foreclosed homes
• demolition of blighted structures
• redevelopment of vacant or demolished property

The City of Saginaw is currently implementing an extensive revitalization plan, developed in June 2008, for the Cathedral District, a key NSP2 target area. There are identified target areas, time lines and interventions for demolition and the decrease in the number of blighted homes. The City of Saginaw has acquired homes for redevelopment from the Saginaw County Land Bank and has assisted with the rehabilitation of 45 properties to date in the three targeted areas. Four agencies are providing program marketing and managing waiting lists for homebuyers.

The Saginaw County Land Bank has both partnered and been the lead agency for three plans, involving 800 properties. The land bank's staff has had extensive experience in the proposed targeted areas. It presently owns 600 properties and recently acquired 800 more through foreclosure proceedings.

Detroit, Flint, Hamtramck, Pontiac, Highland Park, Benton Harbor, and Saginaw are all designated members of the State of Michigan's Cities of Promise Program, which provides funding and technical assistance for neighborhood revitalization planning and implementation.See www.citiesofpromise.org.

Cities of Promise are MSHDA's priority areas for reduction of blight. Many of the census tracts served by Cities of Promise are NSP2 target areas. Cities of Promise planning, technical assistance and funding integrate investment in transit, walkability, community development, environmental sustainability, and healthy lifestyles.