Neighborhood Stabilization Program

View: NSP 2 Amendment

View: NSP 3 Amendment

The City of Chicago has been awarded a total of $153 million in Neighborhood Stabilization Program (NSP) funds to assist 29 community areas that have been affected by foreclosure.

The goal of the program is to stabilize neighborhoods by getting vacant foreclosed homes up-to-code and occupied as quickly as possible in targeted areas. We expect to assist up to 2,000 -2,500 units over the next 3-5 years.

For a complete list of NSP acquired properties, approved developers and vendors, and additional information about the program, please visit the NSP website at www.chicagonsp.org .

HUD Neighborhood Stabilization Program (NSP) Basic Requirements
NSP Eligible Uses for Vacant, Foreclosed Homes

• Establish financing mechanisms for purchase & redevelopment
• Purchase & rehab to sell, rent, or redevelop
• Establish land banks
• Demolish & redevelop, where appropriate

 All funds must be used in “areas of greatest need,” as defined by:

• Number of completed foreclosures
• Subprime lending activity
• Likelihood of an increase in completed foreclosures

Must use funds to serve households at or below 120% AMI ($90,100 for a family of four), with 25% of funds targeted to households at or below 50% AMI ($37,550 for a family of four).

City of Chicago's NSP Strategy
Gain economies of scale with one lead entity responsible for:

• Negotiating discounted acquisitions with lending institutions
• Holding and maintaining properties in the short-term
• Overseeing disposition, working with large network of development partners

Property disposition options include: homeownership, lease-purchase, rental, demolition.

Targeting NSP Investments

• Foreclosures are threatening investments that have been made over the past two decades. Interventions must be strategic and targeted to make an impact.
• Target blocks have been identified based on proximity to recent public and private investments (e.g., schools, police stations, retail development) and other community anchors and job centers (universities, hospitals, commercial corridors, etc.).

Developer Opportunities

• All hands on deck: Rolling RFQ process to become an approved NSP developer.
• Extent of participation based on criteria such as: previous development experience, readiness, financial feasibility, and property management capacity (for rental)
• Approved developers can submit proposals for acquired NSP properties.
• RFQ released March 31, 2009. (See attachment below)

Quarterly Performance Reports
The City of Chicago submits Quarterly Performance Reports (QPRs) for the Neighborhood Stabilization Program (NSP) to the Department of Housing and Urban Development (HUD).

NSP1  2011 First Quarter QPR

NSP2 Fourth Quarter QPR

NSP3 Substantial Amendment
HUD has allocated $15,996,360 in Neighborhood Stabilization Program 3 (NSP3) funds to the City of Chicago.  

In accordance with HUD requirements, the City of Chicago has developed a Substantial Amendment to its 2010 Action Plan.  The Substantial Amendment outlines the City of Chicago’s proposed target areas and activities for NSP3.  

The City of Chicago is soliciting public comments on its NSP3 Substantial Amendment. Public comments will be accepted from 12 a.m. on February 11, 2011 through 12 a.m. on February 26, 2011.

NSP3 Substantial Amendment

NSP3 Maps of Areas of Greatest Need

To submit comments or for more information contact:

Ketsia Colinet
Chicago Department of Housing and Economic Development
121 N. LaSalle St. #1006
(312) 744-0268
Fax: (312) 744-0141
Ketsia.Colinet@cityofchicago.org

For more program information select the following links:

The City of Chicago is amending its NSP 1 Substantial Amendment allocation priorities.  This amendment will be posted for a 15 day public comment period.  Please note that comments will be collected through August 5, 2010.  A summary of comments will be forwarded to the Department of Housing and Urban Development for review.  The amendment can be accessed by downloading the document below.

Amendment to NSP1 Substantial Amendment

Recent News                                                                                                                 

2012 4th Quarter Housing Report PPT