Texas Department of Housing & Community Affairs - Building Homes and Strengthening Communities

Neighborhood Stabilization Program (NSP)

Please join TDHCA on Thursday, June 11, 2009 for a Roundtable Discussion concerning the second round of Neighborhood Stabilization Program funding (NSP 2). The purpose of the discussion is to inform the general public about NSP 2 (which derives from the American Recovery and Reinvestment Act of 2009) and solicit public comment on a possible application from the State of Texas for NSP 2 funding from the US Department of Housing and Urban Development (HUD).

Date: 06/11/2009
Time: 02:30 PM to 04:30 PM
Rusk State Office Building, Room: 227,
200 E. 10th St. Austin, Texas

No pre-registration is necessary.

Federal Agency:

U.S. Department of Housing and Urban Development (HUD)

Modeled After This Existing Program:

Neighborhood Stabilization Program (Non-Competitive)

Total National Funding Provided in the Recovery Act:


Estimated TDHCA Annual Amount Before the Recovery Act:


Supplemental TDHCA Amount (in addition to “before” amount above):

Amount to be allocated through competitive application process.

Program Background and Specifics:

  • The Neighborhood Stabilization Program was established under the Housing and Economic Recovery Act of 2008 (HERA).
  • Through the NSP program, states, units of local government and nonprofits may purchase foreclosed or abandoned properties to demolish or create affordable housing to stabilize existing neighborhoods.
  • Direct housing activities, such as down-payment assistance, home rehabilitation and low-interest loans, are targeted to households earning up to 120% of the Area Median Income (AMI) as defined by HUD. Over half (51%) of beneficiaries from indirect activities, such as demolition, must also meet this income requirement.
  • Changes to NSP under the Recovery Act include:
    • additional, competitive funding for the program;
    • a provision for capacity building and local support (i.e. up to 10% of funds can be used for capacity building and local support);
    • a restriction on land banking and demolition (i.e. no more than 10% of the funds can be used for land banking and demolition); and
    • increased protection for tenants who may reside in repurposed properties.


  • HUD will publish the program notice by May 3, 2009.
  • Applications are due to HUD by July 17, 2009.
  • HUD must obligate funds by February 17, 2010.
  • Successful applicants must expend 50% of funds with 2 years of receipt and 100% of funds within 3 years of receipt.

Program Resources:

Disclaimer: The TDHCA estimates are based on an initial analysis of ARRA and other sources and do not take into account federal rules, which may be developed by the respective federal agency responsible for these funds, and may have a direct bearing on the amount of funds made available to TDHCA and Texas. TDHCA has attempted to use existing formulas as a basis for establishing estimates of the amount of funds however the Department believes that significant adjustments will be made that will have either positive or negative impact on the final funding amounts.