Thursday, July 2, 2009

NSP 2 Funds

The Division of Community Economic Development of the Department of Metropolitan Development (DMD) is applying for $35 million in Neighborhood Stabilization Plan (NSP) 2 funds authorized under the American Reinvestment Act of 2009. The Department of Housing and Urban Development (HUD) is accepting applications from state and local governments and non-profit entities to purchase foreclosed or abandoned homes and to rehabilitate, resell or redevelop the homes in order to stabilize neighborhoods

Unlike the original NSP plan which allotted $29 million dollars to Indianapolis, NSP 2 is a competitive process. The minimum request is set at $5 million. For every $5 million requested, guidelines state that a minimum of 100 abandoned or foreclosed homes must be returned to productive use. Funds must benefit persons earning less than 120 percent of the area median family income and at least 25 percent of the funds must benefit persons earning less than 50 percent of the area median family income.

The NSP 2 funds will build off of the plans developed for use of NSP 1 funds. Ten areas have been targeted (see attached map) using HUD census tract data. Twelve development partners have been selected:
- Indianapolis Neighborhood Housing Partnership
– South East Neighborhood Development
– Greater Eastside Housing Project Team
– Englewood Community Development Corporation
– Mapleton Fall Creek Development Corporation
– Michigan B&O Reinvestment Team
– Community Alliance of the Far Eastside (CAFÉ)
– United Northeast Community Development
– King Park Area Development
– Martindale Brightwood Community Development Corporation
– Near North Community Development Corporation
– Strategic Partners

It is expected that 765 units will be rehabbed and constructed.

The draft budget for the $35 million dollars is:

Acquisition of abandoned/foreclosed homes $7,300,000
Rehabilitation for homeownership $4,750,000
New construction for homeownership $4,000,000
Demolition $2,300,000
Down Payment Assistance $3,000,000
Rental development $10,150,000
Administration $3,500,000
Total $35,000,000

The application will be available in draft form on line at:
starting Thursday July 2nd. Public comments will be taken through July 13th. The application is due July 17th. Applicants will be notified by December 1, 2009.

Written public comments should be submitted to:

NSP2 Comments
Division of Community Economic Development
200 East Washington Street, Suite 2042
Indianapolis, IN 46204

Or on line at:

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