The Delaware State Housing Authority (DSHA) is soliciting public comments on its draft Neighborhood Stabilization Program 3 Action Plan Substantial Amendment to the State of Delaware FY2010 Annual Action Plan from February 11, 2011 to February 25, 2011.
The Neighborhood Stabilization Program (NSP) was created by U.S. Department of Housing and Urban Development (HUD) under the Housing and Economic Recovery Act of 2008 (HERA) in response to the nation’s housing foreclosure crisis. The Neighborhood Stabilization Program (NSP) is a subgrant of the Community Development Block Grant (CDBG) program. In 2009, the Neighborhood Stabilization Program (NSP) funds were made available in a second round of funding (NSP2) under the American Recovery and Reinvestment Act of 2009 (ARRA). Additional Neighborhood Stabilization Program funding for 2010 (NSP3) was authorized by the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).
The U.S. Department of Housing and Urban Development (HUD) allocated NSP3 funds to the State of Delaware, which will be administered by the Delaware State Housing Authority (DSHA). Funds were allocated based on the number of foreclosures and vacancies in the 20 percent of U.S. neighborhoods (census tracts) with the highest rates of homes financed by a subprime mortgage, are delinquent, or in foreclosure.
As a Recipient of the NSP3 funding, the Delaware State Housing Authority (DSHA) is required to prepare a substantial amendment to the Neighborhood Stabilization Program 3 Action Plan, setting forth Delaware’s housing and community development goals and priorities as well as how the NSP3 funds will be used. The Delaware State Housing Authority (DSHA) is proposing to use these funds to provide mortgage and down payment assistance to homebuyers purchasing foreclosed homes in targeted census tracts and to develop rental housing for people with incomes at 50% or less of median income who have a disability. The Delaware State Housing Authority (DSHA) expects to be awarded $5,000,000 in funding.
The amended plan must be submitted to the US. Department of Housing and Urban Development (HUD) by March 1, 2011. For more information on the plan click here.
