Neighborhood Stabilization Program 1 (NSP1 & NSP3)

The Neighborhood Stabilization Program (NSP) was established for the purpose of stabilizing communities that have suffered from foreclosures and abandonment. Through the purchase and redevelopment of foreclosed and abandoned homes and residential properties, the goal of the program is being realized. NSP references the NSP funds authorized under Division B, Title III of the Housing and Economic Recovery Act (HERA) of 2008, provides grants to all states and selected local governments on a formula basis. NSP3 references the NSP3 funds authorized under Section 1497 of the Dodd-Frank Wall Street Reform and Consumer Protection Act: Additional Assistance for Neighborhood Stabilization Program.

NSP1

Under NSP1, Housing and Urban Development (HUD) allocated $3.92 billion on a formula basis to 309 grantees including 55 states and territories and 254 selected local governments. The program was designed to stabilize communities across America hardest hit by foreclosures. Grant agreements for these funds have already been signed. Under the allocation formula, the City of Rialto received $5,461,574 in NSP funds.

NSP3

Under NSP3, HUD allocated an additional $1 billion for a third round of the Neighborhood Stabilization Program (NSP3). The program was designed to continue the stabilization of communities and local governments to acquire and redevelop foreclosed, vacant, and abandoned properties that have become blights on the community and are driving down neighboring property values. Under the Dodd-Frank Act, the City of Rialto will be receiving a direct allocation from HUD in the amount of $1,936,370.