The HUD Neighborhood Stabilization Program is intended to provide emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their
communities. The Neighborhood Stabilization Program (NSP) provides grants to purchase foreclosed or abandoned homes and to rehabilitate, resell, or redevelop these homes in order to stabilize neighborhoods and stem the decline of house values of
neighboring homes. The program is authorized under Title III of the Housing and Economic Recovery Act
of 2008 (HERA) (pdf).
Grant funds under NSP will be allocated to state and designated local governments to carry out specific eligible
activities aimed at stabilizing distressed neighborhoods. Grantees have 18 months to obligate all funds for Eligible Activities. Applicants must then complete all activities within 4 years.
- All activities funded by NSP must benefit low and moderate income persons whose income does not exceed 120% of the area median income.
- At least 25% of the funds appropriated for the redevelopment of abandoned or foreclosed homes or residential property that will be used to house individuals or families whose income does not exceed 50% of the area median income. However, the State
has set an additional goal to target up to 40% of the funds to benefit households whose income does not exceed 50% of the area median income.
- NSP funds cannot be used to prevent foreclosures.
Agency Designation
The Governor's Office has designated the Illinois Department of Human Services (DHS) as the Lead Administering Agency for the State. The Illinois Housing Development Authority (IHDA) and the Illinois Department of Commerce and Economic Opportunity (DCEO) will partner with DHS to help develop the strategic statewide plan and provide expertise on the Community Development Block Grant program. These
agencies are currently working on the draft plan that will outline the State of Illinois' NSP grant strategy and which will be posted on November 7th.
Request for Proposals - Now Available!
The Request for Proposal package has been published in the electronic State of Illinois Procurement Bulletin at http://www.purchase.state.il.us. You can access the NSP Request for Proposal Consolidated Package on DHS and IHDA websites, however these websites do not include the required appendices. Instructions for registering on the
State of Illinois Procurement Bulletin are available on the DHS website.
Supporting Documents
