City of GreensboroNeighborhood Stabilization Program

NSP Program Basics• Established under the Housing & Economic Recovery Act of 2008 (not ARRA)• Based on CDBG regulations with numerous modifications and HOME affordability references• Beneficiaries up to 120% AMI; requires 25% of funds to target under 50% AMI• Created to mitigate the negative impact of the nation’s economic decline and housing market collapse.• Intended to stabilize and revitalize communities or areas hit the hardest

5 Eligible NSP Uses• USE A—Financing Mechanisms• USE B—Purchase and Rehabilitation of Abandoned or Foreclosed Homes• USE C—Land Banks• USE D—Demolition of Blighted Structures• USE E—Redevelopment of Demolished or Vacant Properties

• Get out there and do something with these properties!

HUD Defined Foreclosure Risk Factor Levels

•HUD Model Predictors: Unemployment, Vacancy, Sub-prime loans, Predicted foreclosures•HUD Foreclosure Risk Factor Levels measured from 1-10• As mapped: Low Risk Green – High Risk Red• High risk areas for Greensboro were primarily urban and low income• High concentration in the NE – SW crescent

Concentration in Low Mod Neighborhoods

• Areas outlined in blue meet the low and moderate income definition• High degree of overlap between foreclosure impacts and low mod areas

January 2007- June 2008 Foreclosure Sale Dates• Peak of the subprime foreclosure wave• High concentration of foreclosures in the areas predicted by the HUD model• Driven by sub-prime foreclosures• Less sub-prime concentration now – more Alt-A and job loss foreclosures

Local Ordinance Enforcement – Cases under order to repair (7/08)

• At the same time that homeowner units are being lost to foreclosure there are other elements of disinvestment occurring in the affected neighborhoods.

Focus of Greensboro NSP Response – Looking for the Gaps

• Repair Loans for Homebuyers• Partner with other homebuyer programs to

attract buyers to foreclosures needing repairs• Acquisition/Rehab/Resale• Concentrate the resources • Leverage other housing activities• Permanent Supportive Housing• Increase unit availability• Identified gap in Continuum of Care

Greensboro NSP ContactProgram Manager:

Cynthia BlueSr. Housing PlannerDepartment of Housing and Community DevelopmentPO Box 3136Greensboro, NC 27402(336) 433-7376

cynthia.blue@greensboro-nc.gov