Neighborhood Stabilization Program (NSP) - 2008 to 2010
The Montana Department of Commerce received two, one-time only, allocations of the Neighborhood Stabilization Program (NSP). NSP1 and NSP3 funds were awarded through a competitive grant process to stabilize communities experiencing the impacts from the housing crisis. The program is no longer awarded funds since all awarded NSP funds have been fully expended. However, NSP grantees are utilizing program income funds to continue the impact of NSP funds in their communities. The program continues to operate at a local level with program income funds and reporting the use of the funds to the Department of Commerce.
Specific NSP eligible projects must include one or more of the NSP activities:
NSP funds can be used to:
- Create financing mechanisms to purchase and redevelop abandoned and foreclosed properties (through means such as soft-second loans, loan loss reserves, and shared-equity loans);
- Purchase and rehabilitate abandoned and foreclosed homes to re-sell, rent, or redevelop;
- Establish land banks of foreclosed home properties;
- Demolish blighted structures, if the activity will directly assist a household at or below 120 percent of the area median income; and
- Redevelop demolished or vacant properties, if the activity will directly assist a household at or below 120 percent of the area median income.
NSP funds can also be used for:
- Public services for counseling for those benefiting from NSP funds;
- Direct homeownership assistance for households at or below 120 percent of the area median income;
- The construction and rehabilitation of commercial and industrial buildings, if directly linked to one of the activities described above; and
- Residential household relocation; and acquisition.
- NSP1 Quarterly Report (PDF)
- NSP3 Quarterly Report (PDF)