Neighborhood Stabilization Program (NSP) Substantial Amendment*

Neighborhood Stabilization Program (NSP) was established through the Housing & Economic Recovery Act of 2008 (HERA).  The purpose of NSP is to stabilize communities that have suffered from foreclosures and abandonment.  The U.S. Department of Housing and Urban Development (HUD) allocated $3.92 billion on a formula basis to 309 grantees including the City of South Bend, which received $4,098,520.67 in NSP funds.

NSP funds may be used for activities which include:

• Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
• Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
• Establish land banks for foreclosed homes;
• Demolish blighted structures;
• Redevelop demolished or vacant properties.

NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income.

The City of South Bend's NSP funds will be used as follows:

1. Creation of two residential facilities for special needs populations that will house individuals at or below 50% of area median income.
   • Total project cost of $1,024,631
   • Partnering with South Bend Heritage Foundation (SBHF)
   • Develop housing in any of the 25 census tracts considered "risk score 10" by HUD (2, 3.01, 4, 5, 6, 9, 10, 14, 15, 17, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 33, 34, 111) and on sites that meet the needs of future residents (i.e. access to transportation, service provider needs)
2. Acquisition and rehabilitation of five vacant foreclosed and/or abandoned houses for sale to income eligible families.
   • Total project cost of $900,000
   • Partnering with Near Northwest Neighborhood, Inc. (NNN) and SBHF
   • Working in Census Tracts 6, 19, 20 & 21
3. Redevelop nine demolished or vacant properties (four as new construction and five as rehabilitation) for sale to income eligible families.
   • Total project cost of $1,250,000
   • Partnering with NNN, SBHF, & Habitat for Humanity of St. Joseph County
   • Work to be completed in Census Tracts 6, 19, 20 & 21
4. Demolition of blighted vacant, foreclosed and/or abandoned properties.
   • Total project cost of $563,891
   • Partnering with the City of South Bend Department of Code Enforcement
   • Work to be completed in any of the 25 census tracts considered "risk score 10" by HUD (2, 3.01, 4, 5, 6, 9, 10, 14, 15, 17, 19, 20, 21, 22, 23, 24, 25, 27, 28, 29, 30, 31, 33, 34, 111)
5. Planning and administrative costs at $359,999.

All entities granted NSP funds, including the City of South Bend, are required to submit quarterly performance reports.  These reports provide information on the status of NSP implementation to HUD and the public.

South Bend Quarterly Performance Reports:

• April 1, 2009 – June 30, 2009*
• July 1, 2009 – September 30, 2009*
• October 1, 2009 - December 31, 2009*
• January 1, 2010 - March 31, 2010*
• April 1, 2010 - June 30, 2010*
• July 1, 2010 - September 30, 2010*
• October 1, 2010 - December 31, 2010*
• January 1, 2011 - March 31, 2011*
• April 1, 2011 - June 30, 2011*
• July 1, 2011 - September 30, 2011*
• October 1, 2011 - December 31, 2011*

View the City of South Bend NSP Substantial Amendment* 

Learn more about NSP. 

For additional program information contact:

• Program Administrator
  Liz Maradik
  574.235.5888 x2201
  
  
• Grant Administrator
  Lory Timmer
  574.235.5841
  
  
• NSP Overview Questions
  Pamela Meyer
  574.235.5845

*Acrobat Reader Required

 Department of Community & Economic Development
Division of Community Development
227 W. Jefferson Boulevard • Suite 1200 S
South Bend, IN 46601
574.235.9660 • Fax: 574.235.9469