NSP3 Background & Neighborhoods
The third round of Neighborhood Stabilization Program funding (NSP3) was authorized under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Through a formula allocation the City of Cincinnati received $3.16 million of the additional $1 billion authorized by the Act. NSP3 funds will be used in targeted areas throughout the City where stagnant population growth, high unemployment, and a weak housing market have led to increased foreclosure and vacancy risk scores. The City used methodology outlined by the U.S. Department of Housing and Urban Development to determine the most strategic use of the NSP3 award. This included alignment of NSP3 activities with NSP1 and NSP2 activities, as well as with other federal, state and local initiatives, and ongoing Housing, Business and Code Enforcement activities. The City has currently expended 93% of its NSP3 allocation, in advance of the March 4, 2013 expenditure deadline. 100% of NSP3 funds are expected to be expended by the close of 2013.
The Cincinnati neighborhoods identified as being the areas of high need and aligning with HUD's defined objectives are:
- Bond Hill
- South Fairmount
As with previous NSP funding rounds, the respective Community Development Corporations (CDCs) are responsible for rehabilitation, redevelopment and sale of properties. The CDCs also assist in identification of properties for demolition.
NSP funds are being used to achieve three primary goals:
- housing purchase and redevelopment
- affordable housing
- hazard abatement
Housing Purchase and Redevelopment
The Neighborhood Stabilization Program is designed to promote the sale, rental or redevelopment of abandoned and foreclosed-upon vacant homes. Once the rehabilitation and construction of these units is complete, these homes will remain affordable to individuals or families whose incomes do not exceed 120% of Area Median Income (AMI).
Affordable Housing & Homebuyer Assistance
Neighborhood Stabilization Program Homebuyer Assistance provides up to $14,999 of assistance to low-, moderate-, and middle-income homebuyers to purchase single-family homes that have been rehabbed with NSP funds. Home buyers at or below 120% AMI are eligible to receive help with downpayment and closing costs, and potentially may receive a principle write-down. Twenty-five percent of NSP funds are earmarked to benefit individuals or families at or below 50% AMI.
Removal of blighted buildings leads to stabilization and increased community safety, better property values, and livability of neighborhoods. Monthly Public Nuisance Hearings are conducted to garner community input while determining if abandoned buildings are such a nuisance that demolition is warranted. Demolition of structures in NSP neighborhoods takes place only after standard code enforcement activities have been exhausted.