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Economic
& Community Development
Neighborhood Stabilization Program (NSP)
What is NSP1?
The Neighborhood Stabilization Program (NSP) created under Title III of Division B of the Housing and Economic Recovery Act of 2008 is intended to help stabilize neighborhoods that are under distress from foreclosures, property flipping, and sub-prime lending.
What amount of NSP1 funding did the City of Bakersfield receive?
Through a national formula applied by the U.S. Department of Housing and Urban Development (HUD), the City of Bakersfield received NSP1 funds in the amount of $8,982,836. In September 2010, the City of Bakersfield received a congratulatory letter from HUD stating the City had successfully met both the total obligation requirement and the targeting requirements of NSP1.
How were NSP1 funds spent?
*Downpayment assistance efforts experienced significant activity, helping to assist with the purchase of 56 homes over the course of the program.
*Rehabilitation work was performed on 19 units that were acquired by the Housing Authority of the County of Kern. All are now inhabited by qualified tenants.
*Purchase and rehabilitation of Pinewood Glen Retirement Community (formerly Castlewood) resulted in the expenditure of more than $4 million in NSP funds. The Housing Authority of the County of Kern is the owner of that successful project.
What’s Next?
Separately, the City was recently awarded $3.3 million for the third round of NSP funding, known as NSP3. Recommendations for how NSP3 funds should be spent are being developed and are expected to be presented to City Council for action in early 2011. |
