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. The U.S. Department of Housing and Urban Development (HUD) funds the NSP program by providing grants to states, local governments, nonprofits and a consortium of nonprofit entities on a competitive basis. The Prince George’s County Department of Housing and Community Development is a HUD NSP grantee.
NSP grantees develop their own programs and funding priorities. However, NSP grantees must use at least 25 percent of the funds appropriated for the purchase and redevelopment of abandoned or foreclosed homes or residential properties that will be used to house individuals or families whose incomes do not exceed 50 percent of the area median income. In addition, all activities funded by NSP must benefit low- and moderate-income persons whose income does not exceed 120 percent of area median income. Activities may not qualify under NSP using the "prevent or eliminate slums and blight" or "address urgent community development needs" objectives.
NSP funds may be used for activities which include, but are not limited to:
- Establish financing mechanisms for purchase and redevelopment of foreclosed homes and residential properties;
- Purchase and rehabilitate homes and residential properties abandoned or foreclosed;
Establish land banks for foreclosed homes;
- Demolish blighted structures;
- Redevelop demolished or vacant properties
Homebuyers cannot receive assistance directly from HUD. NSP funds can be used to help homebuyers purchase homes, but they must contact an NSP grantee for application details. NSP operates on a national scale, but participation requirements may differ from one state or city to another.
Prince George’s County has two homebuyer assistance programs that are available to assist potential homebuyers in purchasing their home. They are: Buy Suitland Program and the My HOME Program. Please visit the Redevelopment Authority’s website for detailed information on both programs: www.princegeorgescountymd.gov/RDA or contact the Prince George’s County NSP Program Manager at (301) 883-7323.