View the City of South Bend NSP3 Substantial Amendment  

Neighborhood Stabilization Program 3 (NSP3) is the third round of federal funds made available through the Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act).  The purpose of NSP3 is to assisting in the redevelopment of vacant, abandoned or foreclosed upon residential properties.  The U.S. Department of Housing and Urban Development (HUD) allocated $970 million on a formula basis to 285 grantees including the City of South Bend, which received $1,708,707 in NSP3 funds. 

NSP3 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 that have been abandoned or foreclosed;
• Establish land banks for foreclosed homes;
• Demolish blighted structures; and
• Redevelop demolished or vacant properties as housing.

NSP3 is similar to, but different than NSP1.  Grantees develop their own programs and funding priorities while taking into consideration HUD’s emphasis that NSP3 funds: (1) stabilize not revitalize, (2) the need to select a smaller target area than that used in NSP1, and  (3) selecting an area that could be visibly impacted by NSP3 funds.  Also, NSP3 grantees must use at least 25 percent of the funds appropriated for an activity(s) that will house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP3 must benefit low, moderate and middle income households whose income does not exceed 120 percent of area median income. 

The City of South Bend’s NSP3 funds will be used as follows:

1. Redevelop demolished or vacant properties by building and/or rehabilitating five single-family homes which will then be sold to income eligible households.
   • Total project cost of $1,110,660
2. Creation of one residential facility for special needs populations that will house individuals at or below 50% of area median income.
   • Total project cost of $493,047
3. Planning and administrative costs at $105,000.

All entities granted NSP3 funds, including the City of South Bend, are required to submit quarterly performance reports.  These reports provide information on the status of NSP3 implementation to HUD and the public.

South Bend Quarterly Performance Reports:

• April 1, 2011 - June 30, 2011*
• July 1, 2011 - September 30, 2011*
• October 1, 2011 - December 31, 2011*

View the City of South Bend NSP3 Substantial Amendment. 

Members of the public who are interested in learning more about NSP3 are encouraged to visit: www.hud.gov/nsp

For additional program information contact:

• Program Administrator
  Liz Maradik
  574.235.5888 x2201
  
  
• Grant Administrator
  Lory Timmer
  574.235.5841
  
  
• NSP3 Overview Questions
  Pamela Meyer
  574.235.5845

*Acrobat Reader Required