- Community Development
- Stabilizing Neighborhoods Action Plan (SNAP) Program
Stabilizing Neighborhoods Action Plan (SNAP) Program
Neighborhood Stabilization Program (NSP1)
On July 30, 2008, President George W Bush signed into law the Housing and Economic Recovery Act of 2008 to address the nation's severe housing crisis. Title III of the Act appropriates $3.92 billion of grant funds under the Neighborhood Stabilization Program (NSP) for states and local governments to purchase and redevelop abandoned or foreclosed properties. The Housing and Economic Recovery Act of 2008 directed the U.S. Department of Housing and Urban Development (HUD) to target funding to areas with the greatest need based on the extent of foreclosures, sub-prime mortgages, and mortgage delinquencies and defaults.
Redford Township has been allocated $3,041,364 in NSP funds for use on NSP projects throughout the Township.
According to Title III Section (c), 3 of the Housing and Economic Recovery Act (HERA) States and local governments (NSP grantees) may use the funding to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight.
Eligible uses for the funds include:
- Buying foreclosed homes
- Buying vacant land and property
- Offering down payment and closing cost assistance to low-to-moderate-income home buyers
- Creating "land banks" to assemble, temporarily manage and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of the property.
Redford Township will prioritize the use of NSP funds by targeting its activities in the "Areas of Greatest Need" neighborhoods with the highest percentage of home foreclosures, the highest percentage of homes financed by subprime mortgage loans, and where areas show the highest risk of additional foreclosures. Although geographic concentrations are evident, the Township will target all of the NSP activities described in this section to these high-priority areas, as defined.
These activities include:
- Demolition of Blighted Structures
- Rehabilitation and Redevelopment
- Financing Mechanisms to income-eligible households for down payment/closing cost assistance
Additional Related Documents: